FY26 Classification Hearing _Draft1_PDF — File 25-1735

City of Somerville FY2026 Classification Hearing November 25, 2025 Adoption of Tax Levy percentages for FY 2026 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 82.816, the legal minimum for the City of Somerville for FY 2026. 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 2026. 2

Comparison of State Form LA-4 FY25 & FY26 USE CODE DESCRIPTION FY 2025 FY 2026 FY 2025 FY 2026 PARCEL COUNT PARCEL COUNT ASSESSED VALUE ASSESSED VALUE 101 SINGLE FAMILY 2,312 2,315 $2,575,856,500 2,748,748,800 102 CONDOMINIUM 7,086 7251 $5,326,788,805 5,624,422,691 104 TWO FAMILY 4,775 4,713 $5,408,943,390 5,627,042,747 105 THREE FAMILY 2,188 2,196 $2,995,605,475 3,238,402,151 109 2 OR MORE RES. BUILDINGS/1 LOT 67 76 $119,766,700 142,164,300 111-125 APARTMENTS 4+ 664 661 $2,533,893,917 2,297,773,561 130-132,106 VACANT RES. LAND 173 167 $20,659,700 21,691,700 300-393 COMMERCIAL 590 594 $3,502,218,672 3,531,132,143 400-452 INDUSTRIAL 89 88 $429,666,600 466,983,300 012-043 MIXED USE RESIDENTIAL 252 251 $855,936,542 1,302,697,697 MIXED USE COMMERCIAL $185,866,065 213,663,006 501-508 PERSONAL PROPERTY 697 733 $551,609,270 600,284,530 TOTAL REAL & PERSONAL PROPERTY VALUE 18,893 19,045 $24,506,811,636 25,815,006,626 900-990 EXEMPT REAL ESTATE 394 407 $2,427,288,768 2,517,190,230 3

Parcel Count Changes FY25-FY26: • Added 165 residential condo units (52 conversions) • Added 9 parcels with 2 or more residential buildings on it • 62 fewer two-family properties 4 Market & Growth Growth Only Single family 6.7 % 0.903 % Condominiums 5.6 % 1.094 % Two & Three family 5.5 % 0.587 % Multi – Family 4+ Units -9.3 % 5.739 % Commercial 0.8 % 3.232 % Industrial 8.7 % 4.725 % Average Valuation Changes FY25-FY26

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Average Assessment Changes By Neighborhood: Single Family FY25 Value FY26 Value % Change 25-26 1001 West Somerville South & Cambridge Line 1,231,248 1,308,943 6.31 2001 Ward 2 Union Square South 1,116,329 1,191,050 6.69 3001 Ward 2 Cobble Hill 4001 West Somerville 1,488,055 1,589,917 6.85 5001 Winter Hill North 801,812 863,712 7.72 6001 Ten Hills 925,472 974,410 5.29 7001 Winter Hill & Magoun Square 956,195 1,022,083 6.89 8001 Central, Spring & Prospect Hill 1,141,881 1,210,897 6.04 9001 East Somerville 830,640 876,044 5.47 City Average 1,114,125 1,187,364 6.57 6

Average Assessment Changes By Neighborhood: Two Family FY25 Value FY26 Value % Change 25-26 1001 West Somerville South & Cambridge Line 1,196,183 1,256,386 5.03 2001 Ward 2 Union Square South 1,152,367 1,204,337 4.51 3001 Ward 2 Cobble Hill 4001 West Somerville 1,273,811 1,343,228 5.45 5001 Winter Hill North 860,580 921,294 7.06 6001 Ten Hills 925,841 1,007,066 8.77 7001 Winter Hill & Magoun Square 979,928 1,029,728 5.08 8001 Central, Spring & Prospect Hill 1,136,335 1,191,428 4.85 9001 East Somerville 920,634 970,961 5.47 City Average 1,132,763 1,193,941 5.40 7

Average Assessment Changes By Neighborhood: Three Family FY25 Value FY26 Value % Change 25-26 1001 West Somerville South & Cambridge Line 1,510,302 1,616,170 7.01 2001 Ward 2 Union Square South 1,499,817 1,616,076 7.75 3001 Ward 2 Cobble Hill 4001 West Somerville 1,477,702 1,582,271 7.08 5001 Winter Hill North 1,205,237 1,301,315 7.97 6001 Ten Hills 1,038,040 1,121,480 8.04 7001 Winter Hill & Magoun Square 1,208,267 1,306,898 8.16 8001 Central, Spring & Prospect Hill 1,374,435 1,485,817 8.10 9001 East Somerville 1,164,456 1,264,433 8.59 City Average 1,369,107 1,474,682 7.71 8

Average Assessment Changes By Neighborhood: Condominium FY25 Value FY26 Value % Change 25-26 1001 West Somerville South & Cambridge Line 868,472 885,586 1.97 2001 Ward 2 Union Square South 765,277 790,123 3.25 3001 Ward 2 Cobble Hill 682,081 690,786 1.28 4001 West Somerville 860,642 889,733 3.38 5001 Winter Hill North 623,675 653,659 4.81 6001 Ten Hills 703,599 728,484 3.54 7001 Winter Hill & Magoun Square 620,544 639,259 3.02 8001 Central, Spring & Prospect Hill 781,226 807,770 3.40 9001 East Somerville 638,672 653,534 2.33 City Average 751,734 775,675 3.18 9

FY26 Growth Use Type New Growth Valuation Tax Levy Growth Single Family 23,259,900 Condominium 58,267,657 Two & Three Family 49,354,385 Four+ Units 145,419,609 Mixed-Use Residential & Other 4,771,200 Total Residential 281,072,751 3,066,504 Commercial 113,196,174 Industrial 20,300,100 Personal Property 118,245,270 Total Commercial, Industrial & Personal Property 251,741,544 4,762,951 Total Real & Personal Property 532,814,295 7,829,455 10

Major Contributors to New Growth Valuation u/vanhoosear on Flickr 11 New Growth Valuation FY26 Tax (Estimate) 250 Water St. Lab Cambridge Crossing 45,229,100 $ 855,735 Eversource Utilities 43,529,140 $ 823,571 70 Inner Belt Rd Datacenter 7,795,400 $ 336,689 20-50 Prospect St Apartments & newly finished retail 33,517,200 $ 456,964

Fiscal Year 2027 Life Science New Growth Forecast 12 Location 6/30/2025 % Complete 6/30/2026 Potential Growth Tenant Status Rentable Area 222 Jacobs St 100% - Stabilized 426,869 101 South St 100% - Stabilized 287,959 250 Water St 99% 1% Stabilized 479,004 100 Chestnut St 83% 5%-10% Stabilized 208,616 Life Science Properties Capped at 60% - No Tenants 10 Prospect St 60% 0% Vacant 196,495 808 Windsor St 60% 0% Vacant 370,000 188 Assembly Prk Dr 60% 15% Vacant 495,000 74 Middlesex Ave 57% 0% Vacant 467,952 599 Somerville Ave 50% 0% Vacant 42,780 495 Columbia St 57% 0% Vacant 338,603 Rentable Area 3,313,278 Vacant 1,910,830 Points of Interest • 15 Million SF Vacant in Greater Boston Area • 2 Million SF is the annual demand • Life Science FY 2026 market depreciated 20% from FY 2025 to FY 2026 • FY26 New growth with exception of 250 Water St, and 188 Assembly Prk Dr will not be captured. • The Life Science market depreciation will absorb the new growth captured as our building values fall. • The FY 2027 new growth estimate will fall on the percent complete as of 6/30/26 for 100 Chestnut & 188 Assembly.

FY26 Tax Levy & Classification FY25 Levy Limit: $258,565,387 FY26 Add 2.5%: $6,464,135 FY26 New Growth $7,829,455 FY26 Levy Limit: $272,858,977 FY26 Debt Exclusion $6,716,511 FY26 Max Allowable Levy $279,575,488 FY26 Estimated Tax Levy $279,575,588 Excess Levy Capacity: $ 0 FY26 Change: 5.42% Commercial Levy: $ 91,200,286 Residential Levy: $ 188,375,202 As Assessed With 175% Classification Commercial Value % 18.64% 32.62% Residential Value % 81.36% 67.38% 13 17,143,552,631 91,200,286.39 188,375,201.61

Tax Levy Share: FY26 67.37% 25.38% 4.06% 3.16% Residential Commercial Personal Property Industrial FY25 Tax Levy Share (For Reference) Residential: 66.65% Commercial: 26.33% Industrial: 3.06% Personal Prop: 3.93% 14

Option 1: No Classification & No ResX • Single Tax Rate: $ 10.83 Use Type FY25 Average Value FY26 Average Value FY25 Average Tax FY26 Average Tax Tax Change FY25-FY26 CONDO 751,734 775,675 8,134 8,401 267 1 FAMILY 1,114,125 1,187,364 12,055 12,859 804 2 FAMILY 1,132,763 1,193,941 12,256 12,930 674 3 FAMILY 1,369,107 1,474,682 14,814 15,971 1,157 4-8 FAMILY 1,881,919 1,941,293 20,362 21,024 662 COM 5,935,964 5,944,667 64,227 64,381 154 NOT RECOMMENDED 15

• Residential Rate: $8.97 • Commercial Rate: $18.95 Use Type FY25 Average Value FY26 Average Value FY25 Average Tax FY26 Average Tax Tax Change FY25-FY26 CONDO 751,734 775,675 6,698 6,958 260 1 FAMILY 1,114,125 1,187,364 9,927 10,651 724 2 FAMILY 1,132,763 1,193,941 10,093 10,710 617 3 FAMILY 1,369,107 1,474,682 12,199 13,228 1,029 4-8 FAMILY 1,881,919 1,941,293 16,768 17,413 645 COM 5,935,964 5,944,667 112,427 112,651 224 Option 2: With Classification & No ResX 16 NOT RECOMMENDED

• Residential Rate: $10.99 Commercial Rate: $18.95 RECOMMENDED Option 3: With Classification & ResX Use Type FY25 Average Value FY26 Average Value FY25 Average Tax FY26 Average Tax Tax Change FY25-FY26 CONDO 751,734 775,675 3,881 3942 61 1 FAMILY 1,114,125 1,187,364 7,838 8467 629 2 FAMILY 1,132,763 1,193,941 8,041 8539 498 3 FAMILY 1,369,107 1,474,682 10,622 11624 1002 4-8 FAMILY 1,881,919 1,941,293 16,222 16752 530 ResX Value Reduction: $416,961 Tax Savings of $4,582 17 (ResX included for condo, 1, 2, 3 & 4-8 family)

FY26 TAX IMPACT Somerville High School Debt Exclusion with the Residential Exemption Debt Exclusion impact per use FY 2026 FY 2025 FY 2024 CONDOMINIUM $ 95 $ 97 $ 98 1 FAMILY $203 $196 $198 2 FAMILY $205 $201 $208 3 FAMILY $279 $265 $272 4 TO 8 UNIT $402 $405 $429 18 Actual Taxes multiplied by ratio equals impact debt exclusion on your taxes. Debt Excl impact per use High School Debt Excl 6,716,511 Max Levy 279,575,488 Ratio 0.024023

Residential Tax Community Comparison Municipality FY 25 Residential Tax Rate FY 25 Comm/Ind/ PP Levy Share FY 25 Average Res Value FY 25 ResX Percentage FY 25 ResX Savings FY 25 Average Residential Tax Bill Boston 11.58 55.93 983,028 35% 3,984 7,400 Cambridge 6.35 66.19 1,664,211 30% 3,170 7,398 Somerville 10.91 33.34 1,132,469 35% 4,328 8,027 Waltham 9.82 61.33 862,821 35% 2,966 5,507 Watertown 11.68 49.98 907,023 35% 3,708 6,886 19

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 #FY25 granted Elderly 17D Over 70 -- $78,970 $344 25% water -- 50 Elderly 41C Over 65 $27,632 (S) $41,445 (M) $55,261 (S) $75,996 (M) $1000 25% water -- 30 Blind 37A Blind certificate -- -- 500 -- 14 Veterans 22 VA disability cert over 10% -- -- $400 up to 100% Amount depends on disability 58 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 20