A couple of posts ago I received a comment on another post, the one about getting involved in local elections, regarding a ballot question on the Sturbridge ballot. The election is on April 9th. This is a subject which I totally agree with, and will be doing some more research on. Here is the comment:
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"Here's some info to get the discussion started:
•Sturbridge is currently $4.3 million dollars in long-term CPA debt due to the completion of four very worthwhile CPA projects. Final payoffs on that debt are the years 2017, 2026, and 2030.
•The 3% CPA Surcharge is ON TOP OF the current tax rate of $17.63. See the figures below that help put it into perspective: our town has the second highest property tax rate in comparison to nine surrounding communities. From a homebuyer perspective, Sturbridge’s property taxes are off-putting.
•We need to revoke the Community Preservation Act and stop new spending….NOW. The 3% Surcharge can only be rescinded when all the debt is paid – we’re talking 2030, folks!
•Currently, our annual CPA debt service exceeds our annual CPA Surcharge Revenues: the anticipated 2012 Surcharge Revenue is $360,000; the annual debt service is $413,482. *The Massachusetts Department of Revenue has opined that when communities consider borrowing to fund large CPA projects, the debt service should not exceed the annual revenues – but Sturbridge’s does.
•When the CPA was adopted, the state match was at 100%. Now, the match is 23%; as more towns adopt the CPA, the percentage of state matching funds declines.
Why revoke the CPA?
"Reason 1: We are $4.3 million in CPA debt that we must pay until 2030. We do not feel it is appropriate to fund any new projects, esp in light of the 2011 natural disasters and the town’s current budget situation. The CPA can be brought back by voters at a later date if they so choose.
"Reason 2: In addition to the 3% Surcharge Revenue, the town relies on other fund balances within the local Community Preservation Fund to pay the long-term debt; but those funds are being spent on new, smaller projects on an annual basis. For example, at the June 2011 Town Meeting, voters approved $58,000 in five smaller projects – should that money be saved for when the state-match is reduced or depleted? Or can it be used to more quickly pay down the long-term debt principal and interest?
"Reason 3: Taxpayers need a break! We cannot revoke the 3% surcharge until the debt is paid; but we can revoke the Community Preservation Act and stop new projects from coming forward. We can stop further debt build-up, and we can stop funding new, smaller projects that deter funds away from our current debt.
"FY 2012 Property Tax Rates (All communities except Webster have a single tax classification)
Rates are per $1,000 of assessed valuation (Source: MA Department of Revenue)
Brimfield $14.48 Brookfield $16.45 Charlton $12.00 Dudley $10.90 East Brookfield $14.22 Holland $15.18 Spencer $12.28 Southbridge $17.83 Sturbridge $17.63 (+3%) Webster $11.78 (Residential)$18.47 (Comm’l & Industrial)
*MA Department of Revenue Opinions 2006-50 and 2004-464: "The amount of debt that a municipality may authorize under the Community Preservation Act is limited in amount to that payable from estimated SURCHARGE REVENUES over the life of the borrowings. (3/6/2006)." http://www.mass.gov/dor/local-officials/municipal-finance-law/in-our-opinion.html
More to come, and thanks to Carol, Dave and Barbara
I'm not from Sturbridge, but this gives a lot of good information about the CPA that I didn't know. Thanks!
ReplyDeleteThank you, Just Musing!
ReplyDeleteWe have tight timeframes on this and need to start collecting signatures this coming week. We'll be at the recycling center on Saturday, February 11th.
Please contact me at childresscarol@rocketmail.com to sign the petition!
I am totally in favor of revoking the CPA act to prevent additional CPA spending on more projects until the existing debt is paid or at least much less. I am also in favor of other spending reductions and limits so we do not see another increase in property taxes.
ReplyDeleteCredit for the compiled FY2012 Property Tax Rates above goes to: Ken O'Brien and his blogsite: ozonesouthbridge.blogspot.com.
ReplyDeleteSorry for omitting this, Ken.
Hello everyone,
ReplyDeleteThe petitions to revoke the CPA in Sturbridge will be available to sign during two upcoming Saturdays, the 11th and the 18th, at two places: from 9 am to 12 pm at the Sturbridge Recycling Center and at Shaws Supermarkets.
Please come by and sign the petition so the question whether to revoke or keep the CPA can be put before voters.