##VIDEO ID:https://vimeo.com/1032135798## That's what I heard too. Hey, I'm not voting. I'm not voting for any increases. If we raise the credit taxes claims, good evening. I'd like to call the November 21st, 2024 Special City Council meeting to order. Roll call please. Madam City, clerk Sullivan. Here. Adams here. All here. Bean. Here. Beltran Here. Burns here. Canyon. Uh, she will not be with us. Gie. Here. Harris. Here. Matthews. Kane. Here. Mellow here. Morgan. Ellie. I don't see him. Ky here. Thank you. First item on this agenda is a public hearing. Public hearing relative to the determination of the percentages of the local tax levy to be born by each class of real and personal property for fiscal year 2025 as required by chapter 40, section 56 as amended by chapter 7 1 8 section two acts of 1989 called a public hearing to order. Yeah, there was anyone here sir. Thank you. Good evening. Do you mind Ashley Brown City Assessor. So I would like to start by taking a moment to recognize the team in the assessor's office. We're lucky to have a supportive board of assessors that helps make sure our work is coming out of the office streamlined and accurate during their monthly meetings. Lisa and Barb continue to be the face of the office offering exceptional customer service each and every day while maintaining accurate records and making sure the office stays in order. Michelle has continued to work hard on personal property and completing field inspections for exempt chapter land and uh, new sales. Deb handles all of our residential permits and cyclical inspections, which is essential to make sure the information is up to date and accurately reported. We have 14,041 real estate parcels and 338 active personal property accounts in Westfield with just three assessors, which makes a lot of ground to cover. One thing that owners can do to assist in the accuracy is to review their property record cards, which can be found online or in the office. I hope you all had a chance to review the FY 25 classification packet prior to tonight's meeting. I tried to include enough information to inform but not overwhelm. Um, we have hard copies over here tonight if anyone needs them and there's also a link on the assessor's webpage. So I'm gonna go through a couple of highlights within the packet and I'm gonna start on page three. This year's assessed values are a direct result of the 2023 calendar year sales. We had 473 total sales over all of the classes. Most classes had the minimum number required by the state to create an accurate assessment of full and fair cash value. The state sets the median sales ratio needed to receive certification, um, and we fell below 90% again this year, which just means there needed to be a market adjustment. Um, on average the class increased four to 9%. Single family homes around six to 10. Commercial industrial around seven to the majority will see an increase again this year, but it should be less than the last few years for most With an increase in inces value, there usually comes a question about proposition two and half. There's a common misconception that prop two and half means assessed values and your tax bill cannot go up by more than 2.5%, which is inaccurate. Prop two point a half is a law that limits the annual property tax levy. Each year. Communities are allowed to add 2.5% to the previous year's levee limit along with new growth, which brings us to the new levee limit or the amount of property tax the city can levy or collect. On page eight, you'll find information about the levee ceiling. This year it is 125,010,096. The FY 25 le levy limit, the amount the city could raise through property taxes is 100,823,438. The actual FY 25 levy. So what the city is looking to levy is 90,382,114, which is about $10 million less than the allowable amount. We continue to maintain a comfortable distance from the levee ceiling. The actual difference between the levy used last year and this year is actually lower than the allowed 2.5%. So it's only going about 2.27% up. Page seven. During budget season, we estimated about 600,000 in new growth and we ended up around 989,000. New growth is anything that's going on the tax roll for the very first time. This dollar amount is about 177,000 less than last year. This is because of the decreased tax rate and less new construction. We had about nine new home builds this year versus 19 that we had last year. So about 10 less new home builds. We had one STA that was removed, which was about $3,000 in new growth. We had two auctioned residential properties that moved from exempt to taxable. Four new hangers, one completely done, and three of them at about 75% complete. A handful of new industrial buildings, which were each around 300,000 in assessed value and one larger commercial build. We had 28 new personal property accounts come in this year, um, with an impact on new growth. Currently, FY 26 does not have any subdivisions or large commercial industrial builds that have been confirmed. As of now, large commercial and industrial construction would alleviate some of the tax burden for all classes. On page 13, the state has personal exemptions resulting in tax deductions for those who qualify. Last year, the board of assessor granted 470 exemptions, which is 39 from the year before. The majority of these exemptions are for seniors who meet income and asset qualifications, veterans with a 10% or more service connected disability and those who are legally blind. The total dollar amount exempted was around 368,000. The state reimbursed 266,000, so about 101,000 of that has to be budgeted back in into the overlay, which is actually a budget line item. The Council on Aging also has the senior work off program and veterans offers veteran work off. They had about 17 applicants this past year for around 13,000 in tax deductions. The state does not provide any reimbursement, so this becomes also part of the budgeted overlay. The budgeted amount in the overlay will increase with additional exemptions added being part of the tax levy in the future. All of that information leads us to the staff tax shift vote that will result this year. Page nine of the packet has our historical shifts, which range from 1.63 to 1.69. The shift sheets on page 10 and 11 show, um, the shifts that were historical between 1.6 to 1.75, which is what you historically stay within. However, a full spreadsheet should have been in the city share. That starts one all the way through so you can see all of the shifts. But for the packet, I just kind of based it on voting history. For the purpose of this conversation, we will use average assessed value for single family and commercial properties, which can be misleading as we have properties that will be higher and lower. So we're just using average for ease of conversation. So on page 10, the single family shift sheet will show the $90 million levy. The current average single family assessed value last year's assessment tax rate and bill amount. The dollar change amounts are calculated by using the proposed tax rate and the FY 25 average single family value, which this year is 355,347, which is up just about $17,000 from last year, which is again a direct result of the market. The dollar amount is the entire year. Splitting that into four would show the quarterly increase. So if we took the example of last year's 1.68 shift on the $355,000 property, it would be about $21 a quarter. And I also put the percent changes there. So you can see that as well. Page 11, basically the same thing for a commercial. All the same information, uh, with the average commercial value of 8 0 9 0 8 2, which is up 60,000 from last year, again as a result of market. And if you did the 1.68 shift from last year, you're looking at about $268 a quarter and that also has a percent increases. Just for reference, last year when you voted on the 1.68 shift, the single family went up about $42 a quarter and commercial went up about 289 on average. And then the last page I wanna reference is page 14. Uh, there's a link on there with current property record cards. That's going to be really key for anyone who's looking. Once the things get, uh, the values get approved by the state, people can go on there and see what their new value is. They'll know what the tax rate is and they can figure out what their bill may or may not be moving forward. And then if they have questions, they can bring those to us. So that is what I have to highlight for you. Is there any questions? Questions? I I think I just got one. Um, maybe two. So, um, last year, the shift at 1.68, the average homeowner understanding it's an average was paying an increase of $42 and 90 cents per quarter, correct? Correct. This year with the same shift, um, that's $21 a quarter and nineties. Okay. Yep. So that's a result. I'm assuming the cuts that were made by the council back in June to the budget reflect that is, is reflected in that decrease. I I realize it's a decrease in the increase, which is a very difficult argument go Up. They didn't go up as much, but yes, kind of when you look at it, it was 88 million was levied last year. You're levying nine days, you're going up a little, a little over $2 million. So that is making a difference because of the what was budgeted and what still needs to be funded. Okay. Yep. Thank you. Councilor Matthews Kane. Thank you Mr. President. Can you talk a little bit about the personal property, um, exemption and how that works? So Westfield has the $10,000 personal property asset exemption. So the council voted back in 2011 to increase that from five to 10. So what that means is, for anyone with business assets that are valued less than $10,000, they do not receive a physical tax bill. So while we collect the information, they're not paying taxes because that threshold has been voted. Um, for example, if someone falls right below at $9,999, they're saving about $315 a year. And then obviously it moves down from there. So anyone who's over 10,000 in value receives a tax bill at the commercial rate. Yes. And, and like what percentage, like roughly is exempted? Like of all the people that you have records for? So We have 330 active accounts. Uh, overall we have about 1600 accounts. So you know, majority of them fall underneath that threshold. You're only paying taxes on that 338 that are actually getting that bill over the $10,000 value. So I would say more obviously more than half. Okay. Thanks. Anything else from the council? Thank you. Thank You. Anyone in the chambers like to address the council? If so, step forward and state your name and address. Good please. Good evening and thank you Amanda Waterfield with the Greater Westfield Chamber of Commerce. As in previous years. As you may not be surprised, the chamber's position is again to ask for a shift of 1.61 for fiscal year 25, the shift would represent a more balanced burden between families and businesses. The shift of 1.61 represents a rate of 15.68 per thousand for residents, while commercial owners would be paying 29 10 per thousand nearly double. The residential rate shifting by 1.61 represents an average increase of approximately $15 and 15 cents per month for residents about the cost of a cheeseburger with the average commercial owner paying a tax bill. That's more than four times that of the average single family home. That increase seems more than fair fairness shouldn't be subjective, but it rarely is. It often is. Rather what appears fair to one is often perceived differently from others. I do not envy you counselors in addressing the needs of a community that comprises so many different groups, residents of various backgrounds, businesses with different needs and priorities. You have a momentous task and I commend you for keeping the levy at a record level from the ceiling. A healthy business community benefits all of Westfield. When our commercial enterprises succeed, the results are low, low unemployment, healthy nonprofit organizations that serve the community. Through culture enrichment and supporting our vulnera vulnerable citizens, the downtown becomes an attractive place to shop. Play d and spend dollars locally, the city thrives. Minimizing the tax impact on commercial businesses benefits all of us. I ask you on behalf of the business community and by extension, the city as a whole to approve a 1.61 tax shift for FY 25. Thank you for your consideration. Thank you. Anyone else like to address the council regarding this? It's Council Matthews Kane, would you like to make a motion to close the hearing? Um, like to make a motion to close the hearing. Second. Motion made it seconded. Any further discussion? Seeing none. All in favor? Opposed? Now closed. And then we are in recess until seven o'clock. Okay.