Thursday evening the City Council voted to approve the use of $1.5 million of Free Cash to reduce the Property Tax Levy. Combined with the $1.57 million of one-time mid-year budget cuts, and minor adjustments to other revenues and expenses, the total Property Tax Levy decreased by $3,060,062 to $71,508,735 from the $74,568,797 voted on in June (which was a 6.01% increase from last year’s $69,395,443 Property Tax Levy).
This $71,508,735 is a tax increase of $738,422 or 1.06% plus new growth when compared to last year.
The City Council voted to set the shift factor to 1.66. This resulted in a shifted tax burden on businesses of $7,867,512 – an increase of $302,714 compared to last year.
After accounting for changes in the residential and commercial property values, and new growth of $1,374,870, the tax rates dropped five cents per thousand for residential tax payers, and twenty-five cents per thousand for commercial tax payers. The new rates are $19.37 per $1000 of value for residential, and $36.83 per $1000 of value for commercial, industrial, and personal property.
I’d like to thank all of the taxpayers who came out in June, and who put pressure on their elected officials during the summer months and campaign season, for budget cuts and lower tax burdens. You really made a difference! I’m not a fan of how this was done (because it just kicks the problems into the next years when the numbers will only be bigger), but it does help taxpayers this year, and it gives the city a little more breathing room when it comes to hitting the twenty five cents per thousand Levy Ceiling.
In the end, the final budget saves a residential taxpayer $195 per year on a $250,000 home; $234 per year on a $300,000 home; $273 per year on a $350,000 home; and $905 per year for a $500,000 business – when compared to the taxes that were in the June budget.
I’ve attached a two page report that shows all of the details.
Regards,
Dave Flaherty
Westfield City Councilor
[email protected]
