FYI Begin forwarded message: From: Sam Seidel <sam@samseidel.org> Date: September 26, 2011 4:33:20 PM EDT To: "Seidel, Sam" <sam@samseidel.org> Subject: Property Tax Rate on Tonight's City Council Agenda At tonight's meeting, the City Council will vote on the property tax rate for FY12. The tax rate is set in September for the budget that has been adopted the prior May. The FY12 operating budget increased 1.75%, and the tax levy considered tonight will pay for that budget. The tax levy is derived by three main factors: the budget; commercial-residential tax classification; and property values. The interplay between how much the city plans to spend, the tax rate and the assessed value of property in Cambridge, determine the levy amount. The City Manager writes: "... the actual FY12 property tax levy of $299,090,641 reflects a $15,128, 942 or 5.33% increase from FY12, which is lower than the estimated increase projected in May 2011." Of course, there are other revenue sources that come into the city's coffers -- permit fees, the hotel/motel excise tax, motor vehicle excise tax, and others. The city has sought to soften the impact on the residential property tax rate by making use of these revenue sources while maintaining a strong fiscal position, providing good city services -- and holding budget expansion in check. This has proven to be even more difficult during a time when state aid has shrunk 29% since FY09. The City Manager writes: "This strategy of using an increased amount of non-property tax revenues and reserves to lower property taxes will not jeopardize our long-term fiscal health." In all of this, 86.7% of Cambridge taxpayers will see an increase of less than $250 and I will support what I determine to be good work under difficult circumstances on the part of the Finance Department (see below for more details). You all should have received the city's Tax Letter in the mail already, but if you have further questions, please don't hesitate to contact me or the Finance Department of the city. http://www.cambridgema.gov/finance.aspx Sam Seidel City Council ======================== Below is part of the City Manager's letter accompanying tonight's information. More information is here: http://www2.cambridgema.gov/cityClerk/cmAgendaList.cfm "Based on a property tax levy of $299.1 million, the FY12 residential tax rate will be $8.48 per thousand dollars of value, which is an increase of $0.32, or 3.9% from FY11. The commercial tax rate will be $20.76, which is an increase of $0.86 or 4.3% from FY11. Both increases in the tax rate are less than FY11. "However, approximately 63.9% of residential taxpayers will see a reduction, no increase or an increase of less than $100 in their FY12 tax bill. In addition, another 22.8% of residential taxpayers will see an increase between $100-$250. Therefore, a total of 86.7% of the residential taxpayers will see no increase or an increase of less than $250." Note: Expanded Online Bill Payment Opportunities -- I also would like to note that as of October 1, 2011, taxpayers will be able to pay their real estate and personal property tax bills using a credit card, debit card or electronic check (ACH), subject to a convenience fee.