The centerpiece of the meeting was the discussion surrounding the city’s property tax structure. The Council addressed the implications of maintaining a single tax rate, a decision that affects the distribution of the local tax levy across residential, commercial, industrial, and personal properties. The Mayor detailed the rationale behind this recommendation, emphasizing the interplay between property valuations and tax rates. With property values on the rise since the pandemic, the inverse relationship between these values and tax rates was highlighted, where increases in property valuations typically lead to decreases in tax rates.

The Council also explored the influence of Proposition 2½, a Massachusetts statute that limits property tax increases to 2.5% annually. The Mayor underscored the importance of adhering to this limit to maintain fiscal responsibility and avoid undue burden on taxpayers. He further clarified the cyclical nature of tax bills, where the first two quarters are based on the previous year’s rates, creating a situation where initial payments might subsidize later bills due to timing in assessments and rate adjustments.

Further, the meeting delved into the real estate market’s current state, with updates on property valuations and the certification of documents like the LA3, LA4, and LA13, which contribute to the city’s revenue calculations. The Council noted a dramatic 55% decrease in home sales compared to the previous year, attributed to a shortage of housing stock. Despite this, the local market remains robust, with the average sale price for single-family homes at approximately $415,000, and most homes selling above their asking prices.

In a financial measure, the Council approved a five-year contract for school transportation services, designed to secure competitive rates amid rising transportation costs. This contract, structured as a 3+2 agreement, offers flexibility with a two-year extension option, providing budgeting stability for the school department through fiscal year 2030.

Equally noteworthy was the introduction of a veteran property tax work-off program, mirroring an existing senior program. This initiative allows veterans to reduce their property taxes by up to $1,000 annually through volunteer service to the city. With ten spots available, the program aims to recognize veterans’ contributions while providing financial relief.

The Council also discussed several other agenda items, including a measure authorizing a contract for body camera cloud storage for the Police Department, which was referred to the finance committee, and an ordinance amendment addressing mobile homes and trailers, prompted by police department concerns about unauthorized parking and waste disposal issues.

Additionally, Council members expressed gratitude towards the city clerk’s office for their election preparation efforts, emphasizing the integrity and reliability of the election process. Discussions also included a comparison of health insurance rate increases between Gardner and neighboring Fitchburg, highlighting Gardner’s competitive position in managing health insurance contributions.