07/24/2023 SELECT BOARD Minutes - Laserfiche WebLink

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