Budget season is here, and Beacon’s budget is about to get voted on in December, on the 9th (rescheduled from December 2 due to the winter storm); it must be done prior to December 31, 2019.
We are highlighting a few areas of spending in articles to come next, but wanted to shed light on the big base numbers, and how they have been going up or down over the past few years. This abstract is from the executive report submitted by the City Administrator, Anthony Ruggiero, MPA, who credits Susan K. Tucker, CPA and director of finance for the City of Beacon, for involvement with the production of the budget.
Much of this report is excerpted in quotes from the budget report itself, which you can find at the Beacon Public Library, or you can download Beacon’s budget online as a PDF here:
About The Tax Cap
“The tax cap law established a limit on growth of the annual property taxes levied to 2% or the rate of inflation, whichever is less. This year the tax cap is 2%. There are very limited adjustments that are factored in and only PILOT payments apply to the budget this year. The cap is on the tax levy, not the tax rate.”
For Beacon: “The allowable levy at cap is $11,455,743 for the 2020 budget, which is an allowable increase over 2019 budget of $491,562. This is a 4.48% increase from the 2019 Budget and is directly related to the Tax Base Growth Factor.”
Homestead and Non-Homestead Tax Rate Decrease
The homestead and non-homestead tax rates both saw a decrease. An override of the tax cap is not being recommended, according to the budget report: “The tax cap legislation provides for an override of the tax cap with a majority plus one vote in favor of it by the governing body. This is not being recommended.”
Homestead Assessed Value Increased
Did you get the letter in the mail about your Assessed Value of your home? Did it increase? It did for a lot of people who moved here some years ago, which, according to Mayor Casale and the City Assessor, Kathy Martin, is an expected catch-up, as they explained during a City Council meeting about where the housing assessments should be.
THIS YEAR:
The homestead assessed value increased by 12.33% or $113,555,017.
The non-homestead assessed value increased over last year by 6.94% or $18,784,639.
Overall Assessed Values Seeing An Uptick Since 2010
According to the report: “This year represents the sixth year since 2010 that the overall assessed values increased, and did so by $132,339,656. For the first time in 10 years, the Homestead values are $11,457,133 more than it was in 2009.”
Assessed Values Increasing, But Still Lower Than 2008
The report points out that the assessed values are not where they were at the height of the real estate market in 2008: “Homestead values remain $15,586,532 less than it was in 2008. The non-homestead assessed value has fluctuated through the years, and while it increased $18,784,639 this year, it is only the 3nd year in a row that it has been more than in 2010.”
The Fund Balance
The future projection of the Fund Balance is as follows: “This budget utilizes a fund balance amount of $379,842. This is an increase of $26,271 from what we’ve utilized in the FY 2019 Budget from Fund Balance and Debt Reserve. Each year with the improving economy and new developments on the tax rolls, the budget and assessments continue to strengthen. The future non-reliance on fund balance appropriations to balance the annual operating budget will help to provide for a more reliable and sustainable fiscal condition and to better allow the City to adjust during difficult fiscal times.”
