Selectboard Sets Tax Rate, Preserves 2-cents for Conservation Fund
by Nancy Wood,
August 12, 2010, page 1.....

At the August 9 meeting, the Selectboard set the municipal tax rate at $0.182, which includes 2 cents for the Conservation Fund.

Town Clerk Mary Mead had prepared three scenarios for the tax rate discussion: one with $90,000 surplus from FY2010 applied to reduce taxes and 2 cents ($185,260) going to the Conservation Fund; another with the $90,000 surplus and one cent going to the Conservation Fund ($92,630); and one without the surplus and with 2 cents to the fund. Mead recommended the 1-cent scenario. She said that there is currently $665,000 in the Fund, and she didn’t see any harm in contributing $92,000 this year rather than $185,000. She said, “We should always strive to lower the tax rate,” and that there is no other discretionary spending at this point that the Selectboard can reduce.

Kate Lampton, member of the Charlotte Land Trust Board of Directors, spoke against making this sudden change, rather than following any traditional process. She learned of this proposal just last Thursday, with no time to do any research and analysis of potential impact.

At the March 2010 Town Meeting, the estimated tax rate in the Town Report was based on a 2-cent contribution to the Conservation Fund for this year. However, according to Board Chair Charles Russell, the Selectboard has the discretion to set a lower level of funding. At the March 2006 Town Meeting the voters authorized “the Selectboard to increase the tax rate by no more than two cents for a period of ten years to maintain the Conservation Fund.”

At $0.182 the increase in the municipal tax rate is 14% over last year’s rate. When combined with the higher education tax, the overall increase in the residential tax rate is 3.7%. The increase in the nonresidential rate 2.1%.

The large increase in municipal rates is primarily due to a smaller surplus. Last year $250,000 in prior year surplus was given back to the taxpayers. Another factor is the depreciation in property values, which has led to a reduction in the Grand List of about 0.2%. The Grand List is the aggregate value of all property in town, on which the property tax is based.

As voted by the Town, there is no increase in the actual Selectboard budget.

Summary of Fiscal Year 2011 Property Tax Rates, including 2-cents contribution to the Conservation Fund, and $90,000 in surplus returned to the taxpayers:

Municipal Tax Rate, 0.1820
% Increase, 14%
Total Residential Tax Rate, including Education, 1.5256
% Increase, 3.7%
Total Nonresidential Tax Rate, including Education, 1.5288
% Increase, 2.1%

Prior year (Fiscal Year 2010) Tax Rates:
Municipal Tax Rate, 0.1592
Total Residential Tax Rate including Education, 1.4716
Total Nonresidential Tax Rate including Education, 1.4978

Change in Grand List:
Grand List – 2009: 9,279,373
Grand List – 2010: 9,263,019
% Decrease: -0.18%

Property taxes based on the new rates:
Residential Taxes (before income sensitivity):
Per $100,000 of assessed value: $1,526
$300,000 home: $4,577
$500,000 home: $7,628

Nonresidential taxes (commercial, seasonal, open land):
Per $100,000 of assessed value: $1,529
$300,000 property: $4,586
$500,000 property: $7,644

Other business at the August 9 Selectboard Meeting:

The Selectboard made two appointments to the Affordable Housing Trust Fund Committee: Gordon Brown and Robin Pierce.

The formation of the West Charlotte Village Septic Research Group and its mission were approved. Volunteers for the group will be asked to fill out an application questionnaire and come to the August 23 Selectboard meeting.

A memorandum of Agreement was signed obligating the Town, through the Trails Committee, to help maintain an interpretive sign to be posted at the trailhead for the Pease Mountain Trail. The agreement is with the Chittenden County Regional Planning Commission, which received federal money to create the multi-panel sign, and the Charlotte Central School, which will own the sign placed on school property.