The board engaged in a detailed examination of the residential exemption’s effects on different property types, particularly the disparity between homeowners and apartment owners. While homeowners primarily benefit from property value increases only upon sale or refinancing, apartment owners can immediately capitalize on increased rental income. This prompted a discussion about whether current tax policies inadvertently favor revenue-generating property owners over renters.

A notable point of the discussion was whether maximizing the residential exemption could help balance this disparity. Board members analyzed data showing the number of parcels eligible for the residential exemption had decreased, alongside a trend of growing rentals in the housing market. The proposed residential exemption rate of 20% could result in varied tax increases, with single-family homes facing an average hike of 7.4%, condominiums 4.8%, and apartments about 10%.

In the context of potential changes to tax burdens, the meeting also addressed the implications for Brookline’s commercial properties. A suggestion was made to increase the tax burden on commercial rentals, citing market dynamics that could prevent landlords from reducing rents, even with higher taxes. The board considered the financial benefits these properties currently enjoy due to strong market demand, and how a reallocation of the tax burden might ensure a more equitable distribution.

The board also emphasized the importance of comprehensive data collection to better understand how these potential changes might impact various demographics and property owners. There was a consensus that further information on the number of rental units within Brookline, particularly in commercial properties, was necessary to gauge the full impact of tax policies.

During the meeting, the board also tackled the allocation and management of American Rescue Plan Act (ARPA) funds. The Assistant Town Administrator for Finance outlined a proposal to reallocate $667,500 from projects that had returned funds or were unlikely to meet set timelines. These funds are intended for departmental vehicles, school technology equipment, police uniforms, and fire department needs. Concerns were raised about feasibility and accountability, especially regarding the purchase of electric vehicles and ensuring classroom technology aligns with deferred maintenance issues in schools.

There was a focus on ensuring no ARPA funds were returned to the U.S. Treasury, with board members questioning oversight and reporting mechanisms for subrecipients of the funds. The Assistant Town Administrator reassured the board that compliance and transparency remained priorities, with audits and quarterly reports required from subrecipients.

Further discussion highlighted the Brookline Housing Authority’s management of a $6 million project for capital improvements, stressing the need for timely and compliant fund utilization. Board members expressed satisfaction that subrecipients were on track, mitigating concerns about potential clawbacks. Meanwhile, questions arose about a cancelled project, clarifying that the funds were never allocated and thus not returned.

The meeting also touched on the complexities of managing town budgets, tax classifications, and ensuring effective fund allocation. The chief assessor presented updated property valuation figures, noting residential and commercial growth, and emphasizing the need to strategically manage tax levy increases and overrides for upcoming fiscal years.