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6 <br /> Mashpee Select Board <br /> Minutes <br /> July 24, 2023 <br /> APPOINTMENTS &HEARINGS <br /> Discussion with Regard to Residential Tax Exemptions: Director of Assessing Joseph Gibbons: (continued) <br /> As of January 1, 2022, the average single home value is $770,385. <br /> As of January 1, 2022, the average residential including condominiums, two families, etc. is $660,000. <br /> The potential overlay shortfalls (worst case scenarios) were considered at 20% and 30% as follows; <br /> 20% 1,000 Shortfall: $960,150 <br /> 2,000 Shortfall: $2,920,300 <br /> 3,000 Shortfall: $2,880,450 <br /> 30% 1,000 Shortfall: $1,469,110 <br /> 2,000 Shortfall: $2,938,220 <br /> 3,000 Shortfall: $4,407,330 <br /> An overlay shortfall would create a deficit situation, reducing available funds for the FY2025 budget. <br /> It is recommended that taxpayers, who have not been previously approved, file their applications prior to <br /> the cutoff date to limit potential overlay shortfalls. <br /> Last year, the overlay was increased to $800,000 from approximately $400,000. One-tenth or$80,000 - <br /> $100,000 was utilized. It was noted the overlay is also used to cover unpaid taxes, and other unfunded <br /> liabilities. <br /> Mr. Gibbons indicated it is difficult to determine the applications that would be received. A public service <br /> announcement is considered to ensure the filings meet the deadline to avoid an exposure to the overlay <br /> creating a shortfall. There is a short window as the Classification Hearing is scheduled on November 6, <br /> 2023 while applications are recommended to be submitted by September 1 sr <br /> It was agreed the Finance Director would be consulted regarding the adequacy of overlay funds. <br /> Different scenarios were considered in future planning. It was noted the exemption if supported is adopted <br /> at the Tax Classification Hearing in November. It may be prudent to begin contemplating this issue in the <br /> spring. However, filing for the exemption should occur with the setting of the tax rate. <br /> The budget process begins in October. With departmental reviews and Finance Committee review, funds <br /> for the overlay should be appropriated first. By law, the Assessors can release the balance of the overlay. <br /> The balance minus the unfunded liabilities would be available to add to the funded overlay to support <br /> abatement applications that are filed after September 1st <br />