Tax classification
Reading, MA — By a vote of 3-2, the Select Board voted to change the commercial tax shift from 1.1 in Fiscal Year 2024 to 1.11 in FY 2025. This change will result in a tax rate of $11.39 per $1,000 of value for residential properties and a rate of $12.67 per $1,000 of value for commercial properties in town.
The vote came after Select Board member Melissa Murphy proposed the 1.11 shift, though she said she was hesitant to increase the commercial shift as “small businesses are already hurting.”
fy25-classification-infosmSelect Board member Mark Dockser proposed a higher shift of 1.2, stating that the town has been very accommodating to commercial property owners through the pandemic era and that the time had come to make the shift higher. He also noted that current economic conditions have been borne by consumers and that residents will soon be asked to support two large capital projects.
Member Karen Herrick referenced positive economic indicators for businesses while sharing that the use of the Reading Food Pantry has increased over the past year. She also cited concerns over the upcoming projects.
“I would hate for the Killam project to fail at the ballot box because we have overburdened residents with unfair taxes,” Herrick stated.
Select Board member Chris Haley suggested that the split was already inequitable but supported the 1.11 shift. Chair Carlo Bacci noted that his preference would be to leave the shift the same at 1.1 but voted in favor of Murphy’s proposal.
Resident Angela Binda spoke during public comment in favor of a 1.2 shift, stating that a past economic summit in town had revealed that businesses do not choose to “set up shop” based on the tax rate and that the tax rate has little to do with attracting or driving out a business from town. “Let’s put that notion to rest,” Binda argued.
The board also voted 5-0 not to grant an open space tax discount, 5-0 not to adopt a residential exemption, and 5-0 not to grant a commercial exemption.
Traffic and Parking Regulations
By two 4-0 votes, the board voted to create four-hour parking limits during weekday business hours in the Brande Court and Upper Haven parking lots. This brings back regulations from the past that were vacated when the board voted to install parking kiosks in the lots. When the board voted to pause the kiosk rollout, the lots were left without regulation and have consistently been filled during the daytime since that vote. The police department reported that a return to two-hour parking in the lots would be difficult to enforce at this time.
Several board members indicated that the regulations are stop-gap measures until the kiosks return or other measures are taken. Dockser noted that employers and employees, who often occupy the spaces in the lots, need to take responsibility for policing themselves to help keep the lots available to customers. Murphy noted that she found it infuriating that employees were taking advantage of the situation after all that had occurred.
The board also discussed the tiered water rates for multi-unit owner-occupied properties and agreed to attempt to resolve the issue through the town’s billing software, MUNIS, as Chief Financial Officer Sharon Angstrom proposed. The resolution will be for residential condo owners only. During public comment, several residents asked the board to address their concerns about the rates for multi-unit buildings. In the case of the Postmark building, the homeowners association of the building will be responsible for providing the data to the town.
Multi-unit Tiered Water Rates
Department of Public Works Director Christopher Cole also presented a list of decisions the board will have to make regarding the rollout of a pilot program for issuing second water meters for residents to use for outdoor water use. Possibilities include higher water rates for the second meter, application costs, and fines for water meter tampering. In drafting the proposed regulations, Assistant Town Manager Jayne Wellman shared that the philosophical underpinning was that having a second water meter is “a luxury.”
fy25-classification-infosmIn addition to proposed policies, costs, and regulations, Cole also asked consultant Matt Abrahams to present the possible loss to sewer revenues could be as a result of the change. Abrahams reported that the change could reduce sewer revenues by as much as $640,000 a year, which could be resolved through a sewer rate increase of 9.7% unless other funding avenues are determined.
The Select Board voted to reallocate $87,908.34 from unused American Rescue Plan Act (ARPA) funds to the design work for building pickleball courts in town. Herrick was the dissenting vote, wishing for more specificity regarding the proposal. The board will discuss at a future meeting a plan proposed by Health Director Adetokunbo Solarin to use ARPA funds allocated for COVID-19 response to other health concerns, including rodent mitigation.
American Rescue Plan Act
The board also voted 5-0 to direct Angstrom to disperse any unallocated or encumbered funds at the end of December to be used for capital issues to avoid having to return any of them to the federal government.
After a heated discussion about the editing and approval of their minutes, the Select Board adjourned to executive session at 11:00 pm.
