FY24 Classification Hearing — File 23-1653

City of Somerville FY2024 Classification Hearing November 21, 2023 Adoption of Tax Levy percentages for FY 2024 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 82.6433, the legal minimum for the City of Somerville for FY 2024. 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 2024. 2

Comparison of State Form LA‐4  FY23 & FY24 FY 2024 FY 2023 FY 2024 FY 2023 DESCRIPTION USE CODE ASSESSED VALUE ASSESSED VALUE PARCEL COUNT PARCEL COUNT $2,473,878,700 $2,357,203,800 2,303 2,303 SINGLE FAMILY 101 $5,002,905,362 $4,751,278,705 6,888 6,667 CONDOMINIUM 102 $5,327,284,990 $5,268,290,720 4,829 4,858 TWO FAMILY 104 $2,928,138,675 $2,944,176,080 2,200 2,214 THREE FAMILY 105 $114,358,300 $117,852,900 66 68 2 OR MORE RES. BUILDINGS/1 LOT 109 $2,432,480,606 $2,360,846,005 665 668 APARTMENTS 4+ 111-125 $18,553,700 $20,573,200 167 171 VACANT RES. LAND 130-132,106 $3,261,575,051 $2,653,965,569 595 596 COMMERCIAL 300-393 $433,862,500 $433,342,800 90 91 INDUSTRIAL 400-452 $792,294,696 $767,941,288 250 253 MIXED USE RESIDENTIAL 012-043 $179,445,485 $176,402,406 MIXED USE COMMERCIAL $549,882,130 $450,822,700 658 584 PERSONAL PROPERTY 501-508 $23,544,660,195 $22,302,696,173 18,711 18,473 TOTAL REAL & PERSONAL PROPERTY VALUE $2,430,889,468 $2,361,468,525 388 388 EXEMPT REAL ESTATE 900-990 3

Parcel Count Changes FY23‐FY24: • Added 221 residential condo units (50 conversions) • 29 fewer two-family properties • 14 fewer three-family properties 4 Growth Only Market & Growth 0.542% 4.9% Single family 0.955% 5.3% Condominiums 0.572% 0.9% Two & Three family 6.925% 3.0% Multi – Family 4+ Units 25.755% 22.9% Commercial 0.334% 0.1% Industrial Average Valuation Changes FY23‐FY24

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Average Assessment Changes By Neighborhood: Single Family % Change 23-24 FY24 Value FY23 Value 4.21 1,202,045 1,153,476 1001 West Somerville South & Cambridge Line 3.92 1,090,748 1,049,622 2001 Ward 2 Union Square South 3001 Ward 2 Cobble Hill 5.40 1,432,541 1,359,134 4001 West Somerville 3.76 788,284 759,714 5001 Winter Hill North 6.02 896,159 845,262 6001 Ten Hills 5.29 921,137 874,828 7001 Winter Hill & Magoun Square 5.29 1,100,553 1,045,211 8001 Central, Spring & Prospect Hill 4.82 805,730 768,621 9001 East Somerville 4.95 1,074,198 1,023,536 City Average 6

Average Assessment Changes By Neighborhood: Two Family % Change 22-23 FY24 Value FY23 Value 3.18 1,180,510 1,144,109 1001 West Somerville South & Cambridge Line 2.09 1,132,842 1,107,894 2001 Ward 2 Union Square South n/a n/a 3001 Ward 2 Cobble Hill 2.14 1,252,524 1,226,546 4001 West Somerville 2.55 830,011 809,339 5001 Winter Hill North 1.48 897,622 884,552 6001 Ten Hills 2.55 954,615 930,530 7001 Winter Hill & Magoun Square 2.68 1,109,038 1,080,090 8001 Central, Spring & Prospect Hill 1.50 901,988 888,616 9001 East Somerville 2.30 1,109,398 1,084,457 City Average 7

Average Assessment Changes By Neighborhood: Three Family % Change 22-23 FY24 Value FY23 Value 0.36 1,484,369 1,479,081 1001 West Somerville South & Cambridge Line 0.92 1,457,169 1,443,945 2001 Ward 2 Union Square South n/a 3001 Ward 2 Cobble Hill -0.24 1,439,682 1,443,109 4001 West Somerville -0.06 1,163,149 1,165,438 5001 Winter Hill North 0.55 1,010,460 1,004,940 6001 Ten Hills 0.21 1,172,170 1,169,744 7001 Winter Hill & Magoun Square -0.27 1,338,270 1,341,886 8001 Central, Spring & Prospect Hill 0.23 1,127,750 1,125,195 9001 East Somerville 0.09 1,330,972 1,329,800 City Average 8

Average Assessment Changes By Neighborhood: Condominium % Change 22-23 FY24 Value FY23 Value 0.58 830,837 826,038 1001 West Somerville South & Cambridge Line 1.93 741,849 727,776 2001 Ward 2 Union Square South 2.60 661,136 644,395 3001 Ward 2 Cobble Hill 2.18 836,975 819,142 4001 West Somerville 0.12 597,667 596,932 5001 Winter Hill North 1.05 655,618 648,775 6001 Ten Hills 2.84 601,295 584,709 7001 Winter Hill & Magoun Square 2.87 750,104 729,163 8001 Central, Spring & Prospect Hill 0.25 621,909 620,366 9001 East Somerville 1.92 726,322 712,656 City Average 9

FY24 Growth Tax Levy Growth New Growth Valuation Use Type 12,774,500 Single Family 45,390,326 Condominium 47,004,800 Two & Three Family 163,480,400 Four+ Units 27,212,283 Mixed-Use Residential & Other 3,063,233 296,250,809 Total Residential 11,859,370 683,537,167 Commercial 25,086 1,445,900 Industrial 2,816,283 162,321,800 Personal Property 14,700,739 847,304,867 Total Commercial, Industrial & Personal Property 17,763,972 1,143,555,676 Total Real & Personal Property 10

Major Contributors to New   Growth Valuation u/vanhoosear on Flickr 11 FY24 Tax (Estimate) New Valuation Assembly Row $363,569 $20.9M Grand Union Blvd – Corporate Office Under Construction – $1,590,114 $91.6M 74 Middlesex Ave Assembly Row (Office/Lab) Under Construction – Cambridge Crossing – Union Sq - BoyntonYards $1,665,820 $96M 250 Water Street – Inner Belt (Office/Lab) Under Construction – $694,236 $67.1M 20 Prospect St - Union Sq Apartment /Retail Under Construction – $2,161,272 $124.5M 101 South Street – Boynton Yards (Office/Lab) Under Construction –

FY24 Tax Levy & Classification FY23 Levy Limit: $215,317,042 FY24 Add 2.5%: $ 5,382,926 FY24 New Growth $ 17,763,972 FY24 Levy Limit: $238,463,940 FY24 Debt Exclusion $ 6,705,968 FY24 Max Allowable Levy $245,169,908 FY24 Estimated Tax Levy $ 244,925,954 Excess Levy Capacity: $ 243,954 FY24 Change: 10.44% Commercial Levy: $ 80,551,003 Residential Levy: $164,374,951 With 175% Classification As Assessed 32.8879 18.7931 Commercial Value % 67.1121 81.2069 Residential Value % 12

Tax Levy Share: FY24 67.11% 25.57% 4.09% 3.22% Residential Commercial Personal Property Industrial FY23 Tax Levy Share (For Reference) Residential: 70.85% Commercial: 22.21% Industrial: 3.40% Personal Prop: 3.54% 13

Option 1: No Classification & No ResX • Single Tax Rate: $10.39 Tax Change FY23-FY24 FY24 Average Tax FY23 Average Tax FY24 Average Value FY23 Average Value Use Type $476 $7,546 $7,070 726,322 712,656 CONDO $1,007 $11,161 $10,154 1,074,198 1,023,536 1 FAMILY $769 $11,527 $10,758 1,109,398 1,084,457 2 FAMILY $597 $13,829 $13,232 1,330,972 1,329,800 3 FAMILY $1,109 $19,501 $18,392 1,876,932 1,854,005 4-8 FAMILY $12,781 $56,954 $44,173 5,481,639 4,452,962 COM NOT RECOMMENDED 14

• Residential Rate: $8.59 • Commercial Rate: $18.19 Tax Change FY23-FY24 FY24 Average Tax FY23 Average Tax FY24 Average Value FY23 Average Value Use Type $231 $6,239 $6,008 726,322 712,656 CONDO $599 $9,227 $8,628 1,074,198 1,023,536 1 FAMILY $356 $9,530 $9,174 1,109,398 1,084,457 2 FAMILY $220 $11,433 $11,213 1,330,972 1,329,800 3 FAMILY $494 $16,123 $15,629 1,876,932 1,854,005 4-8 FAMILY $22,452 $99,711 $77,259 5,481,639 4,452,962 COM Option 2: With Classification & No ResX 15 NOT RECOMMENDED

• Residential Rate: $10.52 Commercial Rate: $18.19 RECOMMENDED Option 3: With Classification & ResX Tax Change FY23-FY24 FY24 Average Tax FY23 Average Tax FY24 Average Value FY23 Average Value Use Type $129 $3,587 $3,458 726,322 712,656 CONDO $574 $7,247 $6,673 1,074,198 1,023,536 1 FAMILY $314 $7,617 $7,303 1,109,398 1,084,457 2 FAMILY $108 $9,948 $9,840 1,330,972 1,329,800 3 FAMILY $432 $15,692 $15,260 1,876,932 1,854,005 4-8 FAMILY ResX Value Reduction: $385,327 Tax Savings of $4,053.64 16 (ResX included for condo, 1, 2, 3 & 4-8 family)

FY24 TAX IMPACT DEBT EXCLUSION IS ABOVE & BEYOND THE LEVY LIMIT ‐ THE DEBT EXCL DIVIDED BY THE MAX LEVY = THE RATIO PERCENTAGE  APPLIED TO EACH USE THE AVERAGE TAXES OF EACH USE MINUS THE RESX TIMES THE RATIO = DEBT EXCLUSION IMPACT  PER USE   FISCAL YEAR 2024 DEBT EXCLUSION  ESTIMATED RATES / FY24 ESTIMATED AVG  VALUE  WITHOUT RESIDENTIAL  EXEMPTION WITH RESIDENTIAL  EXEMPTION 10.52  EST RES TAX RATE FY24 USE FY24 USE 221,093,409  FY23 LEVY  221,093,409  FY23 LEVY  18.19 EST COM TAX  RATE  6,705,968 DEBT EXCLUSION 6,705,968 DEBT EXCLUSION 385,327 EST RES  EXEMPTION 245,169,908 MAX LEVY 245,169,908 MAX LEVY 0.027352 RATIO 0.027352 RATIO 1,074,198 101 AVG VAL 309 101 ‐ SINGLE  FAMILY 198 101 ‐ SINGLE  FAMILY 726,322 102 AVG VAL 209 102 ‐ CONDOMINIUM 98 102 ‐ CONDOMINIUM 1,109,398 104 AVG VAL 320 104 ‐ TWO FAMILY  208 104 ‐ TWO FAMILY  1,330,972 105 AVG VAL 383 105 ‐ THREE  FAMILY 272 105 ‐ THREE  FAMILY 1,876,932 111 ‐ 4 TO 8 UNIT  541 111‐ 4 TO 8 UNIT  429 111‐ 4 TO 8 UNIT  FY22 ACTUAL TAX INCREASE FY23 ESTIMATED TAX  INCREASE FY24 ESTIMATED TAX  INCREASE WITH RESIDENTIAL  EXEMPTION WITH RESIDENTIAL  EXEMPTION WITH RESIDENTIAL  EXEMPTION FY22 USE FY23 USE FY24 USE $341.00 101 ‐ SINGLE  FAMILY $560.74 101 ‐ SINGLE  FAMILY $574 101 ‐ SINGLE  FAMILY $39.00 102 ‐ CONDOMINIUM $212.24 102 ‐ CONDOMINIUM $129 102 ‐ CONDOMINIUM $253.00 104 ‐ TWO FAMILY  $486.67 104 ‐ TWO FAMILY  $314 104 ‐ TWO FAMILY  $515.00 105 ‐ THREE  FAMILY $365.50 105 ‐ THREE  FAMILY $108 105 ‐ THREE  FAMILY $1,010.00 111‐ 4 TO 8 UNIT  $852.79 111‐ 4 TO 8 UNIT  $432 111‐ 4 TO 8 UNIT  17

FY23 Residential Tax Community Comparison Average Residential Tax Bill ResX Savings ResX Percentage Average FY23 Res Value Comm/Ind/ PP Levy Share Residential Tax Rate Municipality $4,992 $2,688 35% $744,153 60.74% $10.32 Waltham $6,419 $3,456 35% $919,525 58.28% $10.74 Boston $6,438 $2,759 30% $1,569,411 65.77% $ 5.86 Cambridge $7,263 $3,910 35% $1,080,581 29.15% $10.34 Somerville $7,306 $3,599 33% $802,987 39.05% $13.58 Watertown 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 #FY23 Other requirements Exemption amount Asset limits Income limits Requirements Exemption 55 -- $323 25% water $74,221 -- Over 70 Elderly 17D 47 -- $1000 25% water $51,938 (S) $71,426(M) $25,970 (S) $38,953(M) Over 65 Elderly 41C 16 -- 500 -- -- Blind certificate Blind 37A 90 Amount depends on disability $400 up to 100% -- -- VA disability cert over 10% Veterans 22 9 Consent other lien holders (mortgage) 100% gaining 2.5% interest -- $86,000 Over 65 Constitutes lien payable upon transfer/death Deferral 41A 7 Contact council on aging Up to $1500 -- -- Over 60 Senior work off 19