Greetings Councilors:
Today’s fragile economy cannot adhere to atax and spend mentality. Rein in spending to stabilize real estate taxes.
Does every elected Watertown City Councilor understand the concept of working in the best interest of the electorate? Does everyone scrutinize the financial consequence on residents of Watertown, prior to, unanimous votes of approval? Or, is there a rubber stamp given to the Administration?
According to the cover letter, (click here) associated with the Fiscal Year 2025 Public Disclosure Statement of Tax Valuation (click here); increases for different residential property classes were subject to increases from 3.8% to 10.4%. Add to that, the formula for calculating the Tax Levy (2.5% + New Growth – attached). The numbers are quite consequential.
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Is this how we advocate for affordable housing? And entice restaurateurs and small business owners to lease storefronts? The domino effect of real estate tax increases equates to higher rents. Rein in spending to stabilize real estate taxes.
Yes, there have been no tax overrides. Yes, Watertown does hold a AAA Bond Rating. And yes; many people have worked very hard to achieve, and retain these levels. Inherited status and good circumstances do not mean to spend: at will.
Over 77% of the City Budget is supported by real and personal property taxes. The average homeowner has become: “house poor”. City Councilors are entrusted with wisely spending taxpayer dollars; or not? Rein in spending to stabilize real estate taxes.
In my opinion: a baseline budget that starts with perpetual levels of an enhanced leadership team and continuation of increased organizational strategies are not sustainable on the backs of the taxpayers. Taxpayer relief shield be a prerequisite. Thank you.
Best,
Angie
Angeline Maria B. Kounelis
Retired District A, East End, City Councilor
Thank you addressing this very important issue. I hope your cogent points on tax and spend do not fall on deaf ears.
I’d prefer to pay less taxes as much as the next person, but the property taxes went up because property values increased since 2020. It’s not like they raised the rate.
True, but that doesn’t make it any less of a tax increase. If property values fell, they would probably raise rates to compensate. Councilor Kounelis’s point stands: couldn’t the town could decline or share the windfall by adjusting the property tax rates lower, leaving revenue flat?
This is connected but it specifically concerns the City Council meeting held this past Tuesday. I just watched the first 45 minutes of the playback since I missed it Tuesday. As someone with an Economics degree from Babson College, I thought some of the discussion regarding fiscal policy and budgeting advice was particularly alarming. I am glad it was not coming from Mr. Smith nor the City Manager. Now is the optimal time to spend as current costs are lower than future cost, and the interest rates will be coming down, probably and unfortunately precipitously. It is also a time to fix infrastructure. We cannot continue to kick cans down the road as costs escalate under attempts to mend with glue and tape.
I understand the concern about high assessments inducing high tax bills. I’ve been through the abatement process and probably will be again. I also understand how the love affair with cut spending that began under the Nixon administration and was exasperated by the Regan administration end to the progressive income tax system of the 1950s and 1960s has had deleterious effects. Robert Reich and Paul Volcker have both recognized this. This coupled with severe wage stagnation (If indexing had continued, minimum wage would be $28-30/hr. today) has put so many people in dire straits.
What I would recommend, given the incoming administration plan to make cuts to veterans’ programs, Medicare, Medicaid and Social Security, is for residents to apply for abatements, and for the municipality to heavily readjust abatement criteria for current living circumstances. Mr. Smith’s assessment is done from computer modeling and speaking with others in the field. As he said, people don’t like being visited at their homes. And if one is speaking to the average real estate agent in Greater Boston, one will likely hear that assessors underassess houses by 20-30%. The municipality should also have the conversation with the Commonwealth to become extremely knowledgeable about programs avaialbe to residents, and heavily advertise those programs as someone suggested at the City Council meeting. In 2025, some states will become powerful agents, and any state level monies or credits should be taken of advantage of immediately.
As for house affordability and affordable housing, the answer is more production supply to the former and municipal policies that benefit affordable housing developers, such as POAH, to the later. I am glad that a study is being performed regarding affordable housing development, and I strongly urge that affordable housing developers be closely listen to when they report how profoundly beneficial “by right” zoning is to their development process. As for residents, attend the Affordable Housing Trust Listening Session next Tuesday at 6pm over zoom/at City Hall. If you don’t speak to your situation, the city nor the state will not know about it. And feeling of shame should be parked at the door of those who have created the dire situation.