FY25 Classification Hearing — File 24-1668

City of Somerville FY2025 Classification Hearing November 26, 2024 Adoption of Tax Levy percentages for FY 2025 Somerville Board of Assessors Francis J. Golden, MAA Chief Assessor & Chairman Michael Flynn, MAA Richard Scanlon, MAA Katjana Ballantyne Mayor

Recommendations 1. A motion that the City Council adopts a minimum residential factor of 82.35, the legal minimum for the City of Somerville for FY 2025. 2. A motion that the City Council accepts the provisions of Chapter 59, section 5C approving a residential exemption of 35% of average assessed value for owner occupied properties for FY 2025. 2

Comparison of State Form LA-4 FY24 & FY25 USE CODE DESCRIPTION FY 2024 FY 2025 FY 2024 FY 2025 PARCEL COUNT PARCEL COUNT ASSESSED VALUE ASSESSED VALUE 101 SINGLE FAMILY 2,303 2,312 $2,473,878,700 $2,575,856,500 102 CONDOMINIUM 6,888 7,086 $5,002,905,362 $5,326,788,805 104 TWO FAMILY 4,829 4,775 $5,327,284,990 $5,408,943,390 105 THREE FAMILY 2,200 2,188 $2,928,138,675 $2,995,605,475 109 2 OR MORE RES. BUILDINGS/1 LOT 66 67 $114,358,300 $119,766,700 111-125 APARTMENTS 4+ 665 664 $2,432,480,606 $2,533,893,917 130-132,106 VACANT RES. LAND 167 173 $18,553,700 $20,659,700 300-393 COMMERCIAL 595 590 $3,261,575,051 $3,502,218,672 400-452 INDUSTRIAL 90 89 $433,862,500 $429,666,600 012-043 MIXED USE RESIDENTIAL 250 252 $792,294,696 $855,936,542 MIXED USE COMMERCIAL $179,445,485 $185,866,065 501-508 PERSONAL PROPERTY 658 697 $549,882,130 $551,609,270 TOTAL REAL & PERSONAL PROPERTY VALUE 18,711 18,893 $23,544,660,195 $24,506,811,636 900-990 EXEMPT REAL ESTATE 388 394 $2,430,889,468 $2,427,288,768 3

Parcel Count Changes FY24-FY25: • Added 198 residential condo units (64 conversions) • 54 fewer two-family properties • 12 fewer three-family properties 4 Market & Growth Growth Only Single family 4.1% 0.992% Condominiums 6.5% 1.190% Two & Three family 1.4% 0.606% Multi – Family 4+ Units 4.2% 8.118% Commercial 7.4% 15.298% Industrial -1.0% 0.920% Average Valuation Changes FY24-FY25

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Average Assessment Changes By Neighborhood: Single Family FY24 Value FY25 Value % Change 24-25 1001 West Somerville South & Cambridge Line 1,202,045 1,231,248 2.43 2001 Ward 2 Union Square South 1,090,748 1,116,329 2.35 3001 Ward 2 Cobble Hill 4001 West Somerville 1,432,541 1,488,055 3.88 5001 Winter Hill North 788,284 801,812 1.72 6001 Ten Hills 896,159 925,472 3.27 7001 Winter Hill & Magoun Square 921,137 956,195 3.81 8001 Central, Spring & Prospect Hill 1,100,553 1,141,881 3.76 9001 East Somerville 805,730 830,640 3.09 City Average 1,074,798 1,114,125 3.72 6 FY24 Value FY25 Value % Change 24-25 1001 West Somerville South & Cambridge Line 1,180,510 1,196,183 1.33 2001 Ward 2 Union Square South 1,132,842 1,152,367 1.72 3001 Ward 2 Cobble Hill 4001 West Somerville 1,252,524 1,273,811 1.70 5001 Winter Hill North 830,011 860,580 3.68 6001 Ten Hills 897,622 925,841 3.14 7001 Winter Hill & Magoun Square 954,615 979,928 2.65 8001 Central, Spring & Prospect Hill 1,109,038 1,136,335 2.46 9001 East Somerville 901,988 920,634 2.07 City Average 1,109,398 1,132,763 2.11

Average Assessment Changes By Neighborhood: Two Family 7 FY24 Value FY25 Value % Change 24-25 1001 West Somerville South & Cambridge Line 1,180,510 1,196,183 1.33 2001 Ward 2 Union Square South 1,132,842 1,152,367 1.72 3001 Ward 2 Cobble Hill 4001 West Somerville 1,252,524 1,273,811 1.70 5001 Winter Hill North 830,011 860,580 3.68 6001 Ten Hills 897,622 925,841 3.14 7001 Winter Hill & Magoun Square 954,615 979,928 2.65 8001 Central, Spring & Prospect Hill 1,109,038 1,136,335 2.46 9001 East Somerville 901,988 920,634 2.07 City Average 1,109,398 1,132,763 2.11

Average Assessment Changes By Neighborhood: Three Family 8 FY24 Value FY25 Value % Change 24-25 1001 West Somerville South & Cambridge Line 1,484,369 1,510,302 1.75 2001 Ward 2 Union Square South 1,457,169 1,499,817 2.93 3001 Ward 2 Cobble Hill 4001 West Somerville 1,439,682 1,477,702 2.64 5001 Winter Hill North 1,163,149 1,205,237 3.62 6001 Ten Hills 1,010,460 1,038,040 2.73 7001 Winter Hill & Magoun Square 1,172,170 1,208,267 3.08 8001 Central, Spring & Prospect Hill 1,338,270 1,374,435 2.70 9001 East Somerville 1,127,750 1,164,456 3.25 City Average 1,330,972 1,369,107 2.87

Average Assessment Changes By Neighborhood: Condominium 9 FY24 Value FY25 Value % Change 24-25 1001 West Somerville South & Cambridge Line 830,837 868,472 4.53 2001 Ward 2 Union Square South 741,849 765,277 3.16 3001 Ward 2 Cobble Hill 661,136 682,081 3.17 4001 West Somerville 836,975 860,642 2.83 5001 Winter Hill North 597,667 623,675 4.35 6001 Ten Hills 655,618 703,599 7.32 7001 Winter Hill & Magoun Square 601,295 620,544 3.20 8001 Central, Spring & Prospect Hill 750,104 781,226 4.15 9001 East Somerville 621,909 638,672 2.70 City Average 726,322 751,734 3.50

FY25 Growth Use Type New Growth Valuation Tax Levy Growth Single Family 24,548,900 Condominium 59,510,280 Two & Three Family 50,236,270 Four+ Units 197,478,893 Mixed-Use Residential & Other 795,700 Total Residential 333,026,583 3,503,440 Commercial 498,943,467 Industrial 3,989,700 Personal Property 81,484,200 Total Commercial, Industrial & Personal Property 584,417,987 10,636,408 Total Real & Personal Property 917,444,570 14,139,848 10

Major Contributors to New Growth Valuation u/vanhoosear on Flickr 11 New Growth Valuation FY25 Tax (Estimate) 250 Water St. Lab Cambridge Crossing 75,381,800 1,371,949 153 South St. aka 808 Windsor St. Lab Boynton Yards 84,104,400 1,530,700 188 Assembly Prk Dr Lab Assembly Sq 104,257,800 1,182,125 20-50 Prospect St. Apt bldg. union sq 70,319,900 739,765 301 Assembly Row Apt bldg. & retail 25,815,205 271,576 1,358,695 24,728

FY25 Tax Levy & Classification FY24 Levy Limit: $238,463,940 FY25 Add 2.5%: $ 5,961,599 FY25 New Growth $ 14,139,848 FY25 Levy Limit: $258,565,387 FY25 Debt Exclusion $ 6,625,681 FY25 Max Allowable Levy $265,191,068 FY25 Estimated Tax Levy $265,191,068 Excess Levy Capacity: $ 0 FY25 Change: 8.17% Commercial Levy: $ 88,423,468 Residential Levy: $176,767,600 As Assessed With 175% Classification Commercial Value % 19% 33% Residential Value % 81% 67% 12

Tax Levy Share: FY25 66.65% 26.33% 3.93% 3.06% Residential Commercial Personal Property Industrial FY24 Tax Levy Share (For Reference) Residential: 67.11% Commercial: 25.57% Industrial: 3.22% Personal Prop: 4.09% 13

Option 1: No Classification & No ResX • Single Tax Rate: $ 10.82 Use Type FY24 Average Value FY25 Average Value FY24 Average Tax FY25 Average Tax Tax Change FY24-FY25 CONDO 726,322 751,734 $7,546 $8,134 $588 1 FAMILY 1,074,198 1,114,125 $11,161 $12,055 $894 2 FAMILY 1,109,398 1,132,763 $11,527 $12,256 $729 3 FAMILY 1,330,972 1,369,107 $13,829 $14,814 $985 4-8 FAMILY 1,876,932 1,881,919 $19,501 $20,362 $861 COM 5,481,639 5,935,964 $56,954 $64,227 $7,273 NOT RECOMMENDED 14

• Residential Rate: $8.91 • Commercial Rate: $18.94 Use Type FY24 Average Value FY25 Average Value FY24 Average Tax FY25 Average Tax Tax Change FY24-FY25 CONDO 726,322 751,734 $6,239 $6,698 $459 1 FAMILY 1,074,198 1,114,125 $9,227 $9,927 $700 2 FAMILY 1,109,398 1,132,763 $9,530 $10,093 $563 3 FAMILY 1,330,972 1,369,107 $11,433 $12,199 $766 4-8 FAMILY 1,876,932 1,881,919 $16,123 $16,768 $645 COM 5,481,639 5,935,964 $99,711 $112,427 $12,716 Option 2: With Classification & No ResX 15 NOT RECOMMENDED

• Residential Rate: $10.92 Commercial Rate: $18.94 RECOMMENDED Option 3: With Classification & ResX Use Type FY24 Average Value FY25 Average Value FY24 Average Tax FY25 Average Tax Tax Change FY24-FY25 CONDO 726,322 751,734 $3,587 $3,881 $294 1 FAMILY 1,074,198 1,114,125 $7,247 $7,838 $591 2 FAMILY 1,109,398 1,132,763 $7,617 $8,041 $424 3 FAMILY 1,330,972 1,369,107 $9,948 $10,622 $674 4-8 FAMILY 1,876,932 1,881,919 $15,692 $16,222 $530 ResX Value Reduction: $396,364 Tax Savings of $4,328 16 (ResX included for condo, 1, 2, 3 & 4-8 family)

FY25 TAX IMPACT Somerville High School Debt Exclusion with the Residential Exemption Debt Exclusion impact per use FY 2025 FY 2024 FY 2023 CONDOMINIUM $ 97 $ 98 $104 1 FAMILY $196 $198 $201 2 FAMILY $201 $208 $220 3 FAMILY $265 $272 $296 4 TO 8 UNIT $405 $429 $459 17 Actual Taxes multiplied by ratio equals impact debt exclusion on your taxes. Debt Excl impact per use High School Debt Excl $6,625,681 Max Levy $265,191,068 Ratio 0.024984

Residential Tax Community Comparison Municipality FY 24 Residential Tax Rate FY 24 Comm/Ind/ PP Levy Share FY 24 Average Res Value FY 24 ResX Percentage FY 24 ResX Savings FY 24 Average Residential Tax Bill Boston 10.90 58.33% 946,404 35% $3,611 $6,705 Cambridge 5.92 66.21% 1,664,211 30% $2,919 $6,933 Somerville 10.52 32.89% 1,100,869 35% $4,053 $7,527 Waltham 9.64 61.36% 814,422 35% $2,748 $5,103 Watertown 11.70 50.00% 840,331 33% $3,245 $6,587 18

Exemptions & other options to Reduce RE taxes: • Other than ResX • Reside at property • City allows double the allowed amount for exemptions depending how much their tax bill increased from previous year Exemption Requirements Income limits Asset limits Exemption amount Other requirements #FY24 granted Elderly 17D Over 70 -- $76,744 $334 25% water -- 50 Elderly 41C Over 65 $26,853 (S) $40,277(M) $53,704 (S) $73,854(M) $1000 25% water -- 37 Blind 37A Blind certificate -- -- 500 -- 12 Veterans 22 VA disability cert over 10% -- -- $400 up to 100% Amount depends on disability 91 Deferral 41A Over 65 Constitutes lien payable upon transfer/death $86,000 -- 100% gaining 2.5% interest Consent other lien holders (mortgage) 7 Senior work off Over 60 -- -- Up to $1500 Contact council on aging 9 19