December 3, 2018

“Motion: by Selectman Wojtas to maintain a single tax rate with a residential factor of 1. Seconded by Selectman Lefebvre. Discussion: Selectman Wojtas thanked everyone who has participated in this process. She agreed there is need for more business investment in town, and progress is being made in this area. There is growth among businesses. The Economic Development Director is trying to get new business in town. Impacts from tax revenue haven't been seen yet, and could take 4-5 years to be seen. Tax policy shouldn't make everyone adversaries. Businesses do pay more taxes. They will pay for storm water management. They pay property taxes. They expect increases, but not big ones. They contribute to local events and organizations. She still feels the best outcome for the entire town is to maintain a single rate. Selectman Lefebvre wanted to promote business development in town, and he knew it would be a 7-11 year project. He has watched meetings here and in other towns, and noted that business values are going down in many towns. He believes there is a disconnect between businesses and property owners. He found studies that show the values of the properties go down, which eventually shifts the tax burden back to the residents. The stormwater assessments will already shock the system. Much will depend on the elasticity of businesses and their ability to be able increase their prices. Meanwhile, residents want well- paying jobs, and to attract those employers. He would recommend not splitting the tax rate. Selectman Dixon indicated that he would vote for a split, as the time has come. He promised this when he ran for election. The town has tried to encourage business development and residents have opposed the efforts. Selectman Antul felt flat taxes do not work. She works in a town with a 2:1 split, and believes it works fine; companies still donate to Town causes. She felt taxes are not a major factor for businesses deciding where to locate. Businesses are looking at worker availability, transportation and other things. Taxes will still go up. $200-400.00 does make a difference to many families. She is hearing from Town Meeting Representatives who have heard from residents. The Board has been offering ways to generate revenue. All have been rejected. Auditors have confirmed Chelmsford manages its money well. Something has got to give. Chairman Diggs agreed this has been a complex process. He felt that the study committee did its due diligence, and some businesses will be detracted by a split rate. The Town is trying to achieve economic development, and a flat rate has not attracted more business. He acknowledged that the Board and its views may change in future years. All towns will have to deal with stormwater cost increases. The tax classification study report had no conclusions one way or the other; and both sides have legitimate concerns and arguments. The status quo has gotten the Town nowhere, and it may be time for a change. Future boards will decide whether to change the rates. The impacts of the savings will not change. The bills will go up, but the savings will still be there. One of the valid reasons for splitting the tax rate is to correct an imbalance in the total amount of money collected from residential taxpayers as opposed to that collected from the commercial/industrial segment. In recent years, there has been a sharp increase in the assessment of residential homes vs the slower growth of commercial/industrial business in Chelmsford. Therefore, to put the relationship back in its historic balance, he would vote to split the tax rate. Roll call vote: Selectman Wojtas: aye Selectman Lefebvre: aye Selectman Dixon: opposed Approved 2/11/2019 Selectman Antul: opposed Chairman Diggs: opposed Motion fails, 2-3..” (Motion: Wojtas, second: Lefebvre)

Read it in the official minutes, page 5 (PDF)

“Motion: by Selectman Dixon to split the tax rate with a residential factor of 1.27/.9441. Seconded by Selectman Antul. Discussion: Selectman Lefebvre noted that the average residential taxpayer would save $438.00, while the average business owner will pay $4,390.00 more. Roll call vote: Selectman Wojtas: opposed Selectman Lefebvre: opposed Selectman Dixon: aye Selectman Antul: aye Chairman Diggs: aye Motion carries, 3-2..” (Motion: Dixon, second: Antul)

Read it in the official minutes, page 5 (PDF)

“Motion: by Selectman Lefebvre to adopt a small commercial exemption of 10%. Seconded by Selectman Wojtas. Discussion: Selectman Lefebvre was concerned about small businesses such as Rosie's Diner that are barely eking out an existence. Selectman Wojtas agreed larger companies can absorb this cost much easier. Mr. Reen explained that about 120 businesses might be impacted, and more data would be needed. He would expect abatement requests to increase. Selectman Antul stated a company's costs get factored into their prices, and will be passed on to the consumer. Mr. Reen & Mr. Cohen explained that getting the tax bills out in time after tonight's decision would be difficult. They requested the Board sign all paperwork this evening, as it needs to be sent to DOR, and all communities are waiting for a tax rate. There will be a bottleneck in getting bills printed, and getting the rates approved at the state level. Selectmen Wojtas, Lefebvre and Dixon in favor. Selectmen Antul & Diggs opposed. Motion carries, 3-2..” (Motion: Lefebvre, second: Wojtas)

Read it in the official minutes, page 5 (PDF)