HomeMy WebLinkAbout2001-9-14
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ADVISORY COMMITTEE OF NONVOTING TAXPAYERS
NEXT MEETING: SEP 19,2001, 10 AM., LANDMARK HSE CONFERENCE ROOM
MINUTES OF SEPTEMBER 14, 2001 MEETING
1. Meeting was convened by Chair Roger Ernst at 10:05 in the High School conference
room. Present: ACNVT members Chomo, Ernst, Mueller, Roman, Sherman, and
Sutphen; plus Connie Vosges, Town and County Finance Director, and Richard Wolfe.
The minutes of8/31/01 were approved.
2. Connie Vosges noted her background of some 20 years in municipal fmance: in
Winchester and Wellfleet, MA, then in Houston, TX and the last few in Nantucket. She's
now quite refamiliarized with MA municipal fmance. To understand how the island's real
estate tax levy is determined, she noted that the state allows the year-to-year levy increase
to exceed 2-1/2% by an amount dependent upon the assessed value of new growth. For
FY2000, that amount added to the levy was $813,000. For FY2001, delay in the State's
Department of Revenue caused the Town's levy to be some $400,000 less than the new-
growth formula allowed. Tax revenue was about $30 million.
As MA law requires, real estate is reassessed up to fair market value every 3 years, based
upon RE sales. Current assessments date from 1/1/01 for FY2002. The Town Assessor
Debbie Dilworth, as far as practicable, makes reassessments during the year as new
construction is completed and new sales data comes to hand.
ACNVT member observations that Nantucket's tax rates are low was affIrmed, but RE
taxes are regarded as high by those who have seen their assessed values rise and as a part
of their cost of living. The backlog of capital expenditures not yet funded is likely at least
$12 million. Under new federal reporting standards, replacement costs of existing
infrastructure will be highlighted. Unlike new construction, neither state nor federal grant
money is generally available to cover capital expense for maintaining needed
infrastructure. Unlike corporate accounting, municipal reports do not show asset
depreciation.
Override capacity of the Town is reckoned at $167 million. The current tax rate of about
4% could be raised by override to the more typical 10 - 15% (not to more than 25%) or
just to 5% to address current underfunding. But override votes require strong community
support. State approval for head tax or other alternatives to the RE tax are unlikely. Only
fees can be legislated locally, i.e., by Town Meeting.
Suggestions: (1) include an ACNVT representative on the Town's override committee,
and (2) have civic groups and voters petition the Board of Selectmen and FinCom in
support of an override (once its magnitude has been reckoned). Town funds can be spent
to inform but not to persuade voters.
Unsettled was a question whether assessments are rising at a higher on expensive
properties than on affordable ones, thus easing somewhat the levy on year-round families.
,
The flat residential exemption for year-round taxpayers does ease their burden. Connie
Vosges was thanked and departed.
3. Roger Ernst distributed copies of his "Possible ACNVT Agenda Items: Financial
Sector" and "Possible In-kind Contributions to the Community" [available on request].
4. Dates ACNVT members will be off-island will be compiled to the extent available to
help plan future meetings.
5. To further consider a letter to Board of Selectmen and I&M regarding cap extension
Article 4, an ACNVT meeting was set for Wednesday 9/19 at 10 a.m. Bill Sherman will
give notice of the place, e.g., Landmark House conference room. Individuals may
meanwhile write to the I&M.
6. The Chair appointed Terry Sutphen to speak on behalf ofthe ACNVT at the 10/10/01
Special Town Meeting, explaining that the Town Moderator requires that the
spokesperson be identified before entering the voter seating area of the High School
auditorium.
7. Adjourned at 11 :30 a.m. Respectfully submitted by ACNVT Secretary,
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