Framingham Sets 2014 Tax Rate: Homeowners Expect to Pay 2.85% More

Expect to pay more in taxes in 2014.

Framingham Selectmen set the 2014 tax rate at $18.36 for each $1,000 of assessed value for residential; $41.09 for commercial and industrial properties, at a public hearing on Wednesday night.

Selectmen opted still for a split tax rate, but like this year the board voted to give a slight break to the commercial side and not charge the maximum $41.32 to commercial/industrial which could have meant the residential rate would have been $18.29.

The vote was 4-1, with the board's newest Selectman Michael Bower voting against the recommendation. Bower was elected in April.

Selectmen Charlie Sisitsky made the motion for the new rates, calling it a compromise.

Sisitsky said he is well aware that homeowners were whacked with a large increase a couple of years ago and that Selectmen were sensitive to that by agreeing to reduce the levy from 2.5 percent to 1.5 percent; but the town wants to encourage and keep business and thus proposed going with the slight benefit to the commercial taxpayers when setting the rate.

In 2010, residential homeowners paid a rate of $14.52. In 2011, $16.03. In 2012, $16.94. In 2013, $17.84 and now $18.36 for 2014.

For a single family house, the average tax bill will rise 2.85 percent, to $5,947.43. That's an increase of more than $160 a year over last year's taxes. In 2010, the average tax bill was less than $5,000, but that was before taxpayers saw an 11.10 percent increase in Fiscal Year 2012.

Editor's Note: I am a homeowner and taxpayer in Framingham since 2000.

Bower said setting homeowners are under seige and need some relief. he said the same homeowners who were hit with the large tax increase a couple of year ago were also hit with large water and sewer bills, too.

"Homeowners north, south, east and west in Framingham are hurting," said Bower. He said he sees it every day on his street. "People are terrified to go to their mailbox and see their bill," said Bower.

Framingham Selectmen Chair Dennis Giombetti, who announced last week he would not seek re-election, said the town has a high commercial tax rate (neighboring Natick's rate for residential and commercial is $14.18) and ideally he would love to help both the homeowners and the businesses.

Former Planning Board member Sue Bernstein questioned why Natick's rate is so low compared to Framingham. She noted Natick's property values are higher but the population is lower so she wondered if the difference was the budget and how much Natick spends on schools, police, fire, etc.

Bernstein was one of more than a dozen residents and Town Meeting members, and a couple of Selectmen candidates, who spoke at the public hearing.

Former Selectman Ginger Esty spoke, and as she did when serving on the board, questioned the assessment in town of commercial properties.

"Are we missing something in commercial business that could help us?" asked Esty, who reminded the board Selectmen promised to help homeowners after the 11 percent increase in 2012.

New Framingham Chief Assessor William Naser, in his presentation to Selectmen, said assessment for residential and commercial properties for FY14 were based on sales in calendar year 2012.

The total worth of the town is $7,241,593,787, of which residential and open space property owners accounted for $5,569,402,378.

If Selectmen had opted to go with one rate like Natick, the estimated rate would have been $23.61 for both homeowners and commercial/industrial property owners.

Overall, Naser said residential property values went down 0.22 percent. In FY13, the overall residential property was valued at $5,581,503,793 or 76.77 percent of the town's total. For FY14, the value is $5,569,402,378 or 76.91 percent.

Naser said commercial property values also went down by 0.35 percent or from $1,204,498,235 to $1,200,300,512.

Industrial property values increased by 2.06 percent or from $239,864,800 to $244,817,100. Industrial properties only account for about 3 percent of all properties in Framingham.

Many of the taxpayers who spoke at the hearing asked for Selectmen to vote to reduce the burden on the homeowners.

"Do the management and keep our taxes down," said Town Meeting member Bob Bolles, who said taxes have gotten out of hand the last 15 years.

Framingham Town Meeting member George Lewis, of Precinct 18, agreed. He said he needed to take out a loan after the large increase in 2012, just to pay his taxes. And like Esty, he questioned the assessment of commercial properties in Framingham. 

But Town Meeting member Herb Chasan said "Framingham is right where is should be." He said the "town is doing very well" and it is "well managed" and "I don't mind paying the taxes."

His statement prompted Giombetti to joke to Framingham CFO Mary Ellen Kelley that the town should shift some of its tax burden to Chasan.

Finance Committee member Scott Estes spoke in favor of Selectmen giving a slight break to commercial/industrial property owners. he said by doing so, the town would attract and retain more businesses, and thus help to lower taxes for homeowners in the long run.

Sisitsky agreed with Estes and thus his motion that Selectmen approved 4-1.

Resident Gerry Bloomfield challenged Selectmen and town leader to be creative and come up with ways to reduce the budget, which would then help to reduce the tax burden on homeowners.

"People are in need of help," he said. "Maybe you should reduce the budget. We have talented people. Let them be creative and find ways to reduce the budget and still have quality services."

CFO Kelley was creative Wednesday night when she suggested Selectmen used local receipts increases and building permits expected to be paid to be used to offset the levy.

Kelley said local revenue exceeded estimates in FY13. She said the town has the ability to "take some risk to increase the FY14 estimates, further reducing the amount the tax levy needs to increase to keep the balanced budget." She said the Town could "match the FY13 amount, which would add $342,700 to offset the levy."

Selectmen Sisitsky included that suggestion in his tax rate motion.

Kelley also asked Selectmen to take another risk "and increase building permits by another $300,000" as the Town of Framingham has 18 projects expected to file soon, including a very large Genzyme project.

Selectmen Sisitsky included that suggested risk in his tax rate motion, too.