RCL Notes for civic news links: Tax Rate setting November 7, 2013 RCL Notes
NOTES OF NOVEMBER 7, 2013 RYE BOARD OF SELECTMEN MEETING
TAX RATE SETTING
Final Revision B – Provided by the Rye Civic League
Present: Selectmen Jenness, Musselman. Absent: Joe Mills. Also present: Cindi Gillespie, Mike Magnant, Donna Decotis, Beth Yeaton, Representative from Rye Water District
Present from public: Peter Crawford
Editor’s note: The meeting was held in Cyndi Gillespie’s office. Thus, there is no video. Although the meeting notice was posted at the Town Hall and the Library, it was not posted on the Town’s website, contrary to what appears on the face of the notice.
Summary
2. The School and County tax rates are up.
3. Note: This meeting was posted, but not on the Town website.
CAUTION: THE FIGURES HEREIN ARE PRELIMINARY AND SUBJECT TO APPROVAL BY THE NEW HAMPSHIRE DEPARTMENT OF REVENUE ADMINISTRATION
The meeting was called to order at 5:08 p.m. Ms. Gillespie reported the tax rates for the districts:
Jenness Beach Rye Beach Rye Water
Budget $88,750 $134,400 $4,550,031
Revenues $2,000 $68,051 $3,872,315
Net $86,750 $66,349 $677,716
Assessed
Valuation ($000s) $382,113.8 $223,782.9 $1,109,687.79
2013 tax rate $.23 $.30 $.61
2012 tax rate $.20 $.40 $.51
Editor’s note: The tax rate, which is per $1000 assessed valuation, is calculated by taking the budget and subtracting the revenues to arrive at a net figure. That figure is then divided by the assessed valuation for the district to come up with a tax rate, which is per $1000 of assessed valuation.
Ms. Gillespie then reported that the net town value, per the MS1 form, is $1,769,621,290. Editor’s note: This is the assessed valuation of properties in Town. The fund balance is $1,952,913. Editor’s note: A portion of the unreserved fund balance is required to be retained by the Town in accordance with state law. The Town has flexibility to vary this within ratios established by the State. The fund balance increases when the Town expends less than was budgeted, or when it takes in more revenue than was budgeted. The fund balance reflects underspending, or revenues greater than budgeted, through the end of 2012.
Ms. Gillespie reported that $818,648 of the fund balance was the maximum that could be used this year to reduce taxes. Editor’s note: The comparable figures for the unreserved fund balance applied to reduce taxes are $865,000, $673,549 and $651,503 in 2010, 2011 and 2012 respectively. Ms. Gillespie also reported that, after consulting with Town Counsel and the Assessor, it is being recommended that an overlay of $150,000 be established as a conservative number. Last year was an update year. An overlay of $250,000 was established for that year, but only $45,000 was used. Editor’s note: The overlay is established to cover assessments that, as the result of an appeal process, are reduced, requiring a refund to the taxpayer.
Ms. Gillespie reported that prior to use of the unreserved fund balance to reduce taxes, the total tax rate would be:
2013 tax rate without use of fund balance $11.35
2012 tax rate $11.22
However, if the $818,648 is applied to reduce taxes, the tax rate, excluding the districts, would be:
2013 2012
Town $3.12 $3.44
County $1.12 $1.07
Local School $4.29 $4.27
State School $2.44 $2.44
Total $10.97 $11.22
Editor’s note: The figures for 2012 were not discussed at this point in the meeting, but appear on page 16 of the Town’s 2012 Annual Report. The following figures appeared on the unofficial MS1 form passed out at the meeting, but were not discussed:
Town Appropriation $9,049,427
Town Revenues $3,030,483
Net $6,018,944
War service credits $ 176,250
Taxes to raise $6,195,194
The following further adjustments were made at the meeting and do not appear on the MS1 form:
Taxes to raise $ 6,195,194
Fund balance applied $ (818,648)
Overlay $ 150,000
Adjusted taxes to raise $5,526,546
Assessed valuation ($000s) $1,769,621.29
Adjusted tax rate $3.12 (adj. taxes divided by assess. value)
Selectman Musselman noted that applying the maximum portion of the fund balance to reduce taxes would result in a $.25 reduction from the prior year. Selectman Jenness stated that that would be a “big deal.” Selectman Musselman stated that it had been 7-8 years since a higher tax rate was charged than was needed. He said that Selectman Mills always wanted to raise the rate.
Selectman Musselman then moved to apply the maximum $818,648 unreserved fund balance to reduce taxes in 2013. Selectman Jenness seconded the motion.
Ms. Gillespie noted that the figure is strictly unofficial. She stated that revenues last year were $2,528,700. Selectman Musselman stated that the revenues are up $500,000, which accounts for much of the available unreserved fund balance. Editor’s note: A sewer bond also matured in 2012, eliminating $250,000 of principal and interest payments, however slightly more than half of this reduction was in the sewer fund and acted to reduce the rates for sewer customers rather than taxpayers in general. Ms. Gillespie noted that the Town valuation is also up, from $1.752 billion to $1.769 billion.
The motion to apply the unreserved fund balance and reduce the tax rate to $10.97 carried unanimously.
The meeting then adjourned at 5:18 p.m.
