Tax levy set; rates likely to see small rise
By Doug Grindle Community Reporter

Marlborough - Residential tax rates are going up in Marlborough, but the increase is likely to be a small one, according to the city assessor.

At the City Council meeting Dec. 3, Principal Assessor Anthony Trodella presented the Board of Assessors' recommendations to the City Council at a hearing covering how the tax levy ought to be divided up in the city, between residential and business properties.

The true growth in the tax levy would be $2.6 million, for a total of $79.75 million, Trodella said.

Homeowners would likely see a modest increase in their taxes.

"The recommendation will end up with a less than 1 percent increase in the typical single family home in the city," Trodella said.

Trodella noted the hearing covered only the tax levy, which is the amount needed by the city to operate. Tax rates have not been set, and need state input first.

"The board does not set rates," Trodella said.

But by approving the levy, councilors would be in effect setting the tax rates, Trodella said, because the rates flow as a mathematical formula from the levy, and so it is possible to estimate the tax rate.

Trodella paid tribute to the mayor and city councilors for resisting the urge to spend, which would create the need for a larger tax levy.

"A lot of cities and towns [in Massachusetts] are reporting major increases. We are not," Trodella said.

With the proposed levy at $79.75 million, the assessors presented to the City Council the proposed breakdown of what classes of property would pay for it. The assessors recommended residential properties pay for 54.7 percent, owners of open space pay for .0078 percent of it and commercial and industrial property owners would pay for 45.26 percent of it.

That allocation would shift the tax burden slightly toward residential property owners, compared to last year.

The tax rate for residential properties would rise by about 1 percent, for commercial and industrial properties would drop by about 1.7 percent, and for open space tax rate would rise by 11 percent, compared to last year, Trodella said.

The assessors' report noted that commercial and industrial properties accounted for only 28 percent of the assessed value in the city but paid 45 percent of the tax. Currently business tax rates are almost double those paid by residences, noted John Riordan, the head of Marlborough 2010, an economic development group in the city.

The assessors also noted that value of a typical single-family home had dropped over the past year, from roughly $362,000 to $356,000, or about 2 percent in value.

The assessors report recommended using $1 million of the city's free cash and putting it toward the levy.

The assessors also recommended lowering the residential exemption from 10 percent to 8 percent. Trodella said maintaining the exemption results in inequality in the tax bill.

"The eff ect is that high value homes subsidize the low value homes," Trodella said.

At-Large Councilor Michael Ossing, the chair of the Finance Committee, said the reduction in the residential exemption was welcome and that readjusting the tax burden is easiest when taxes are steady or only rising a little

"You're not going to get a better time than this to reduce it," Ossing said.

President of the Marlborough Chamber of Commerce Susanne Morreale-Leeber told councilors she supported the recommendations, especially the narrowing between the residential and the commercial/industrial portions of the tax levy.

"I am pleased to see this proposal is to shift the burden in a more equitable and positive manner," Morreale-Leeber said.

The council then voted to approve the transfer of $1 million of city funds to go toward the tax levy, to approve the tax levy ratio between residential and commercial/ industrial properties, and to change the residential exemption to 8 percent.