FOR THE RECORD MY NAME IS BRIAN. WE'RE OUT DISTRICT FOR CITY COUNCILOR AND I'M THE CHAIR OF THE BOSTON CITY COUNCIL COMMITTEE ON WAYS AND MEANS. TODAY IS DECEMBER EIGHT, 2025.
THE EXACT TIME IS 10:14 A.M. THIS HEARING IS BEING RECORDED . IT IS ALSO BEING LIVE STREAMED AT BOSTON.COM BACKSLASH CITY DAS COUNCILOR DAS TV AND
BROADCAST ON XFINITY CHANNEL EIGHT RCN CHANNEL 82 AND FILES CHANNEL 964 WRITTEN COMMENTS MAY BE SENT TO THE COMMITTEE EMAIL AT C C W M AT BOSTON DOT
GOV IT WILL BE MADE PART OF THE RECORD AND AVAILABLE TO ALL COUNCILORS. PUBLIC TESTIMONY WILL BE TAKEN AT THE END OF THIS HEARING. INDIVIDUALS WILL BE CALLED ON IN THE ORDER IN WHICH THEY
SIGNED UP WILL HAVE 2 MINUTES TO TESTIFY. IF YOU ARE INTERESTED IN TESTIFYING IN PERSON PLEASE ADD YOUR NAME TO THE SIGN UP SHEET NEAR THE ENTRANCE OF THE CHAMBER. IF YOU ARE LOOKING TO TESTIFY
VIRTUALLY PLEASE EMAIL OUR CENTRAL STAFF LIAISON. MEGAN AND MEGAN CORRADO AT ANY AGE AND AT C0RU GEDO AT
BOSTON.COM FOR THE LINK IN YOUR NAME WILL BE ADDED TO THE LIST. TODAY'S HEARING IS ON DOCKET NUMBER 2045. ORDER RELATIVE TO THE ADOPTION
OF TAX CLASSIFICATION IN THE CITY OF BOSTON AND NY 2020 2026 THIS MATTER WAS SPONSORED BY COUNCILOR BRIAN WORRELL WITH FORWARD TO THE COMMITTEE ON DECEMBER THREE, 2025.
TODAY I'M JOINED BY MY CATHOLIC COLLEAGUES IN ORDER OF ARRIVAL COUNCIL. MURPHY COUNCIL PRESIDENT LOUIJEUNE CATHOLIC COLETTE ZAPATA, CASA FITZGERALD AND COUNCILOR BREADON.
WE HAVE RECEIVED A LETTER OF ABSENCE FROM COUNCILOR WEBER . I WANT TO THANK EVERYONE FOR COMING AS WE TALK ABOUT TAXES ONCE AGAIN. I WANT TO REMIND EVERYONE OF THE ACTION THAT WE ARE ULTIMATELY BE TAKEN WITH THIS
DOCKET. WE AS A COUNCIL WILL VOTE ON WHETHER OR NOT WE WILL GRANT THE FULL 35% RESIDENTIAL HOMEOWNER'S EXEMPTION AND WE AS A COUNCIL WILL VOTE ON WHETHER
WE WANT TO SET THE RESIDENTIAL RATE AT THE LOWEST POSSIBLE RATE ALLOWED BY STATE LAW AND COMPARISON TO THE COMMERCIAL RATE. WE TAKE THIS ACTION EVERY YEAR.
I WANT TO NOW PASS IT OVER TO TODAY'S PANELISTS IF THEY WANT INTRODUCE THEMSELVES. I'M GOING TO WAIVE OPENING REMARKS TO MY COLLEAGUES WHICH JUST DIVE INTO THE CONVERSATION.
THE FLOOR IS NOW YOURS. GOOD MORNING CHAIR ORAL AND COUNCILORS I'M ASHLEY GRAF BERGER I'M THE CHIEF FINANCIAL OFFICER FOR THE CITY. THANK YOU FOR HAVING US HERE TODAY TO TALK ABOUT THIS VERY IMPORTANT ANNUAL TOPIC.
AS THE CHAIR MENTIONED THIS IS A ROUTINE ANNUAL EXERCISE FOR THE MAYOR AND THE CITY COUNCIL TO ADOPT THE RESIDENTIAL EXEMPTION AND CLASSIFICATION FOR THE CITY.
HISTORICALLY THE CITY HAS CHOSEN TO MAXIMIZE BOTH UNDER CURRENT STATE LIMITS AND THAT'S A SIMILAR ASK OF WHAT WE'RE ASKING OF YOU ALL TODAY TO
MAXIMIZE BOTH UNDER CURRENT STATE LAW. AS YOU ARE ALL VERY FAMILIAR WITH, WE HAVE PASSED AND SENT UP WITH YOUR HELP A HOME RULE PETITION TO MAKE FURTHER
ADJUSTMENTS TO THOSE MAXIMUMS. BUT THAT LEGISLATION IS STILL PENDING A COMMITTEE ASSIGNMENT AT THE STATE HOUSE. SO THE ACTION TODAY IS TO ADOPT BOTH OF THOSE UNDER THE CURRENT THE CURRENT LIMITS UNDER THE
LAW. SO I THINK WITH THAT I'LL TURN IT OVER TO OUR COMMISSIONER OF ASSESSING NICA ANELLO. GOOD MORNING COUNSELORS. GOOD MORNING, CHAIR.
FOR THE RECORD, MY NAME IS NICHOLAS ARNOLD. I'M THE COMMISSIONER OF ASSESSING FOR THE CITY OF BOSTON. I'M HERE TODAY ON BEHALF OF THE ADMINISTRATION TO SUPPORT
DOCKET 2045 WHICH WOULD ALLOW FOR A SPLIT TAX RATE THROUGH CLASSIFICATION. THAT'S WHAT MAKES IT SO RESIDENTIAL AND COMMERCIAL TAX RATES ARE DIFFERENT AND IT WOULD ALLOW FOR A RESIDENTIAL
EXEMPTION. SO WITHOUT PASSAGE OF THIS DOCKET WE WOULD REVERT TO A SYSTEM WHERE WE HAVE ONE FLAT TAX RATE FOR EVERYBODY. IT'S A REALLY IMPORTANT ACTION THAT THE COUNCIL AND MAYOR
THINK SINCE BOTH THESE THINGS HAVE EXISTED HAVE ALWAYS VOTED TO MAXIMIZE TO PROVIDE THE MOST RELIEF POSSIBLE TO OUR
RESIDENTS BY WAY OF EXAMPLE. AND THESE ARE ESTIMATED RATES BECAUSE THE FINAL RATES ARE STILL DEPENDENT UPON ACTION COUNCIL AND THEN ALSO FINAL APPROVAL OF THE STATE.
BUT I CAN TELL YOU THAT IF WE HAD A FLAT TAX RATE THE RESIDENTIAL TAX RATE WOULD BE ESTIMATED TO BE $15.40 AND THE COMMERCIAL TAX RATE WOULD BE
ESTIMATED TO BE $15.40. SO THAT'S ACROSS THE BOARD FOR EVERYBODY. IF WE HAD RESIDENTIAL EXEMPTION
OF 35% AND WE CHOSE NOT TO ADOPT CLASSIFICATION THEN WE WOULD HAVE A RESIDENTIAL RATE OF $18.62 AND A COMMERCIAL RATE OF $15.40. SO THAT DEMONSTRATES HOW THE RESIDENTIAL EXEMPTION GETS
BUILT INTO THE RESIDENTIAL TAX RATE ITSELF. SHIFTING TO WHAT I BELIEVE TO BE KIND OF THE LIKELY SCENARIO OF THE LAWS AS THEY STAND TODAY
I CAN GIVE YOU EXAMPLES OF WHAT IT WOULD LOOK LIKE IF WE HAD A 175% SHIFT AND WE HAD A RESIDENTIAL EXEMPTION OF 35%. SO IN THAT INSTANCE THE RESIDENTIAL RATE IS GOING TO BE
ESTIMATED TO BE $12.40 FOR FISCAL YEAR 2026 AND THE COMMERCIAL RATE IS GOING TO BE ESTIMATED TO BE $26.96 FOR FISCAL YEAR 26. IF IT'S INTERESTING I HAVE
ANOTHER COUPLE EXAMPLES. ONE WOULD THEY ARE RELATED TO THE LEGISLATION THAT WE FILED LAST YEAR AND ALSO THE LEGISLATION THAT IS PENDING NOW
. SO IF WE LOOK AT ONE OF THE FIGURES IN THE LEGISLATION THAT'S PENDING NOW IS 180% SHIFT. SO IF WE LOOK AT THAT THE RESIDENTIAL TAX RATE IS
ESTIMATED TO BE $11.99. SO IT'S STILL AN INCREASE OVER LAST YEAR BUT A DECREASE FROM $12.40 AND THE COMMERCIAL RATE WOULD BE ESTIMATED TO BE $27.73. ANOTHER NUMBER THAT'S IN THE
LEGISLATION THAT'S CURRENTLY UP AT THE STATE HOUSE IS 181.5% THAT WOULD HAVE A RESIDENTIAL EXEMPTION ESTIMATED TO BE $11.86 AND A COMMERCIAL TAX RATE THAT IS ESTIMATED TO BE
$27.96. AND THEN FINALLY THE EXAMPLE I WOULD GIVE BE KIND OF WHAT COULD HAVE BEEN THE MAXIMUM UNDER LAST YEAR'S LEGISLATION WHICH IS A 200% SHIFT AND THAT
WOULD HAVE A RESIDENTIAL RATE GOING DOWN TO $10.33 AND A COMMERCIAL RATE OF 30.81 CENTS. THE LEGISLATION AND SYSTEM IS
DESIGNED AS KIND OF THE SCALE WHERE YOU CAN PICK ANYTHING IN A WHOLE RANGE. SO IF THE COUNCIL'S INTERESTED AND I'M HAPPY TO SHARE EVERY
POSSIBLE NUMBER FROM NO SHIFT TO 20% SHIFT I HAVE THAT AVAILABLE AND CAN THEN TALK THROUGH IT OR SHARE IT AFTERWARDS. BUT AS I SAID HISTORICALLY THE
COUNCIL HAS ALWAYS CHOSEN THE MAXIMUM SHIFT AVAILABLE TO BENEFIT OUR RESIDENTS TO THE GREATEST EXTENT POSSIBLE. THANK YOU. I WANT TO ACKNOWLEDGE THAT COUNCILOR FLYNN AND COUNCILOR SANTANA HAS JOINED US
AND ALSO COUNCILOR PEPEN. I WILL NOW TURN IT OVER TO MY COUNCIL COLLEAGUES IN ORDER ARRIVAL FOR QUESTIONING STARTING WITH COUNCILOR MURPHY .
COUNCILOR, YOU HAVE THE FLOOR. AS WE KNOW WE'RE IN THE LAST HOURS OF THIS TERM. WE'RE MEETING TODAY. IF YOU COULD JUST TALK THROUGH THE TIMELINE. ARE YOU EXPECTING THIS TO JUST
BEGIN THE CONVERSATION FOR HEARINGS NEXT YEAR OR HOPING THAT THIS IS SOMETHING THAT WE BRING FORWARD ON WEDNESDAY TO VOTE ON THE DOCKET THAT IS
SCHEDULED SAY WE'RE HOPEFUL TO HAVE IT FOR WEDNESDAY SO THAT WE CAN PROCEED WITH THE PRINTING OF OUR TAX BILLS THAT GO OUT ON JANUARY 1ST. WITHOUT IT I THINK WE'D DEFAULT TO THAT FLAT TAX RATE AS COMMISSIONER MENTIONED, WHICH
WOULD MEAN EVERYONE WOULD GET A TAX RATE OF $15.40 AND WE WERE HERE DOING THE SAME THING. COULD YOU JUST LAST YEAR COULD YOU TALK THROUGH WHAT WAS DIFFERENT IF ANYTHING?
I THINK THE THE PROCESS EVERY YEAR IS FUNDAMENTALLY THE SAME. SO THERE'S AN ORDER THAT IS PUT FORWARD SEEKING TO HAVE THE MAXIMUM CLASSIFICATION SHIFT AND TO HAVE THE MAXIMUM
RESIDENTIAL EXEMPTION THAT'S ALLOWED AT THAT POINT IN TIME. SO IT'S A VERY SIMILAR PROCESS TO LAST YEAR AND I WOULD SAY AT LEAST THE LAST 20 YEARS AS FAR BACK AS I'M FAMILIAR AND AS WE
ALL KNOW LAST YEAR DIDN'T PASS AT THE STATE HOUSE. SO IF YOU COULD TALK THROUGH WHAT IMPACT THAT DID HAVE ON OUR RESIDENTS. YES.
SO THE HOME RULE PETITION THAT WE HAD INTRODUCED LAST YEAR WAS NOT SUCCESSFUL AT THE STATE HOUSE ULTIMATELY AND SO WE HAD TO ADOPT A SHIFT AT THE MAXIMUM
LEVEL ALLOWED UNDER STATE LAW WHICH IS 175%. AND AS A RESULT, AS WE PREDICTED, RESIDENTIAL PROPERTY TAXES INCREASED SIGNIFICANTLY. I THINK FOR THE AVERAGE SINGLE
FAMILY HOME THAT INCREASE WAS ABOUT 10.4%. AND THEN WHEN YOU EXPANDED THAT TO INCLUDE OTHER PROPERTY TYPES IN THE CITY BEYOND JUST SINGLE FAMILY HOME, THAT INCREASE WAS
CLOSER TO 15%. SO THAT WAS AGAIN WITH THE US THE STATE LAW LIMITS THAT CURRENTLY EXIST. AND LOOKING AHEAD TO THE BUDGET
SEASON NEXT YEAR AND I KNOW CONVERSATIONS START JULY 1ST LIKE WE DON'T WAIT FOR THE NEXT YEAR ARE WE MAKING ANY CUTS THAT WOULD ALSO HELP SUPPORT
NOT NEEDING TO RAISE TAXES ON OUR RESIDENTS? SO WE HAVE ISSUED GUIDANCE TO OUR CITY DEPARTMENTS FOR THIS UPCOMING FISCAL YEAR TO REDUCE THEIR BUDGETS BY 2% BELOW THEIR
CURRENT YEAR APPROPRIATION. AS WE'VE TALKED ABOUT MANY TIMES. THAT IS VERY HELPFUL AND NECESSARY FOR A KIND OF FISCAL STABILITY OF THE CITY AND
WHETHER OR NOT IT KIND OF IMPACTS THE TAXES IS BASED ON WHETHER OR NOT WE MAKE A DIFFERENT CHOICE ABOUT OUR TAX LEVY. BUT JUST GIVEN THE ECONOMIC UNCERTAINTY AND THINGS THAT WE'RE FORECASTING FOR THE NEXT
YEAR, WE ARE ASKING DEPARTMENTS TO MAKE REDUCTIONS IN THEIR BUDGET AND THAT'S NOT COMMON SAY THREE YEARS AGO, FOUR YEARS AGO WOULD DO TO ASK DEPARTMENTS TO DO THAT ALSO. WE DIDN'T IN THE LAST COUPLE
OF YEARS BECAUSE WE HAD YOU KNOW, A ROBUST REVENUE GROWTH THAT WAS SUPPORTING THE BUDGET AND COVERED MONEY. YEAH, THERE WAS THE ARPA FUNDS BUT KIND OF FOCUSING GENERALLY
JUST ON OUR REGULAR OPERATING REVENUES THEY WERE STRONG AND RECOVERING POST-PANDEMIC. AND SO WE WERE ABLE TO SUPPORT A HEALTHY GROWTH IN OUR BUDGET. BUT AS I THINK WE'RE ALL AWARE,
ECONOMY IS COOLING, THINGS ARE SLOWING DOWN AND SO WE'RE MAKING ADJUSTMENTS ACCORDINGLY. SO THANK YOU. I'LL WAIT TILL THE NEXT ROUND FOR MORE QUESTIONS. THANK YOU CHAIR. THANK YOU. THE CHAIR RECOGNIZES COUNCIL PRESIDENT LOUIJEUNE
COUNCIL. YOU HAVE THE FLOOR. THANK YOU, MR CHAIR. AND THANK YOU TO EVERYONE FOR BEING HERE. SO JUST TO CLARIFY SO THAT FOLKS ARE AWARE THIS IS THE NORMAL TAX CLASSIFICATION THAT WE DO EVERY YEAR SO THAT WE
DON'T GO OVER BUDGET TO A TAX RATE A SINGLE RATE THE SINGLE RATE EXACT CORRECT. AND SO WHILE IT'S RELATED TO THE CONVERSATION, IT'S NOT THIS IS THE WORK OF THE COUNCIL THAT
WE HAVE TO DO EVERY YEAR. I'M CURIOUS WITH RESPECT TO WHAT TAXATION LOOKS LIKE FOR BOTH BASED ON PROPERTY AND INCOME.
WE DON'T HAVE AN INCOME TAX HERE BUT WHAT DOES IT LOOK LIKE COMPARED TO WHAT OTHER CITIES ARE DOING? GREAT QUESTION. SO WE ARE NOT UNIQUE IN MASSACHUSETTS IN THAT WE ARE
ALL SORT OF BOUND BY THE SAME RULES AND STRUCTURES SO WE ARE HEAVILY PROPERTY TAX RELIANT HERE IN THE CITY OF BOSTON ABOUT THREE QUARTERS OF OUR REVENUE IS GENERATED BY PROPERTY TAX AND THERE'S GREAT
VARIABILITY ACROSS CITIES. YOU HAVE OTHER CITIES THAT HAVE SALES TAX INCOME TAXES AS YOU MENTIONED. SO WE ARE VERY LIMITED IN THE
STRUCTURE THAT WE HAVE AND TO BE PROPERTY TAX RELIANT. RIGHT. AND WE CAN'T HAVE A PROGRESSIVE PROPERTY TAX RATE BECAUSE I BELIEVE HAVE ASKED YOU THIS
QUESTION COMMISSIONER IRENE IF WE COULD DO IT IF WE COULD MEANS TEST YEAH NOT NOT SEPARATELY RIGHT. I THINK PEOPLE HAVE AN INCOME
TAX FOR THAT REASON BUT THERE WAS A WAY TO MEANS TEST PROPERTY TAXES SO THAT THOSE YOU KNOW THAT ONE OF THE REASONS WHY WE'RE HERE MATCHING YOUR ACTION COUNCIL WAS HERE SO
MANY OF OUR RESIDENTS ARE HOUSE RICH BUT CASH POOR AND YOU KNOW IF THERE WAS A WAY TO SORT OF UNDERSTAND WHO COULD ACTUALLY BEAR THE BURDEN
OF INCREASED TAXES BASED ON INCOME, THAT COULD BE ANOTHER MANEUVER THAT THIS BODY COULD LOOK AT. BUT MY UNDERSTANDING IS THAT IT'S PURSUANT TO THE MASSACHUSETTS CONSTITUTION THAT WE'RE NOT ABLE TO DO THAT. I APPRECIATE THE QUESTION.
BUT THE PRESIDENT THAT'S THAT'S CORRECT. PURSUANT TO PROPERTY TAX LAW, IT'S VERY MUCH TIED INTO OUR STATE CONSTITUTION AND THERE ARE A LOT OF RESTRICTIONS AROUND KIND OF WAYS TO MODIFY
IT AND NOT MODIFY IT. THE CLOSEST THING THAT WE HAVE TO THAT IS THE RESIDENTIAL EXEMPTION THAT KIND OF DOES AN ELEMENT OF TURNING WHAT WOULD
OTHERWISE BE A FLAT TAX INTO A PROGRESSIVE TAX. SO THE LOWER YOUR PROPERTY VALUE IS THE HIGHER PERCENTAGE OF YOUR TAXES THE RESIDENTIAL EXEMPTION ACCOMMODATES FOR AND THEN OTHER THAN THEN THAT THE
OTHER MEANS TESTED PRODUCTS THAT WE HAVE OR EXEMPTION RELATED SO SENIOR EXEMPTIONS THAT ARE ALSO VERY MUCH CONTROLLED BY STATE LAW AND
THAT THE COUNCIL HAS ALSO PUT FORWARD ALONG WITH THE CITY SOME ADJUSTMENTS TO THOSE PROGRAMS THAT WE'RE STILL WAITING FOR ACTION ON. OKAY.
TWO ADDITIONAL QUESTIONS WHEN WE TALK ABOUT THE DECREASE IN IN COMMERCIAL PROPERTY VALUES, CAN YOU TALK ABOUT WHAT IT DOES THAT CONSISTENT THROUGHOUT THE CITY? DO ALL COMMERCIAL SPACES ARE THERE AREAS WHERE THE
COMMERCIAL INDUSTRY IN THE CITY IS DOING FINE AND IS THRIVING WHERE THEY DON'T DON'T EXPERIENCE OR DIDN'T EXPERIENCE A SIGNIFICANT DECREASE? DO YOU HAVE THAT DATA TO SHARE WITH US YET? THAT IS THAT'S ALSO AN
EXCELLENT QUESTION. IT'S SOMETHING THAT IT'D BE NICE IF THERE WAS A REALLY STRAIGHTFORWARD ANSWER. I THINK ONE OF THE GOOD THINGS ABOUT BOSTON IS THAT WE ARE
LARGE ENOUGH AND DIVERSE ENOUGH THAT THERE'S A BUNCH OF DIFFERENT PROPERTY TYPES AND SO IT IS NOT THAT THE COMMERCIAL MARKET IS CONSISTENTLY GOING DOWN A CERTAIN PERCENTAGE POINT YOU
HAVE DIFFERENT AREAS SUCH AS RETAIL THAT ARE DOING WELL, HOTELS HAVE BEEN DOING WELL. THERE'S DEFINITELY HAS BEEN HAS BEEN WIDELY PUBLICIZED IN ISSUE
ON VACANCY AND KIND OF CLASS B AND CLASS C OFFICE SPACE THAT'S BEEN LOWERING THOSE VALUES. THERE'S ALSO BEEN ISSUE WITH BASICALLY THE CONCEPT OF FLIGHT
TO QUALITY WHERE WHEN TENANTS ARE RENEWING SPACE THEY END UP MOVING TOWARDS THE HIGHER END CLASS SPACE BECAUSE THEY HAVE THE ABILITY TO WHICH IS A
NORMAL MARKET PRODUCT WHEN YOU HAVE KIND OF HIGH VACANCY LEVELS AND RENTS MOVE AROUND. SO THESE ARE ALL KIND OF RELATIVELY NORMAL ECONOMIC CONCEPTS THAT HAVE BEEN KIND
OF BROUGHT ON AS THE AIR ECONOMY GLOBALLY BUT IN BOSTON IN PARTICULAR KIND OF ADAPTS TO WHAT THE FUTURE LOOKS LIKE POST-COVID THANK YOU TO THREE
ADDITIONAL QUESTIONS. ONE BUT I CAN'T FIND THE OTHER ONE IN MY HEAD BUT THIS COMPETITION THAT WE'VE PUT FORWARD NOW TWICE BEFORE TO THE TO THE OUR OUR COLLEAGUES ON
BEACON HILL, IT WOULD THERE'S A TIME PERIOD ON IT. RIGHT. SO AT WHAT POINT WOULD IT REVERT BACK TO THE WHAT WE'RE VOTING ON TODAY ESSENTIALLY YES. SO THE LEGISLATION IS CURRENTLY
DRAFTED WAS A THREE YEAR WINDOW COVERING FOIA 25 THIS CURRENT ERA FY 26 AND THEN FY 27 NEXT YEAR AND THEN REVERT BACK TO THE CURRENT MAXIMUM LEVELS IN FY 28. OKAY. THANK YOU.
AND THEN IT IS MY UNDERSTANDING THAT EARLIER THIS YEAR WAS IT LAST YEAR THAT OUR LEGISLATORS ON THE LEGISLATURE, THE LEGISLATOR LEGISLATURE PASSED A
SIMILAR HOME RULE PETITION FOR WATERTOWN AND IS CONSIDERING PASSING A SIMILAR PETITION AGAIN WHILE ACTION FOR THE CITY OF BOSTON HAS STALLED.
IS THAT CORRECT AND ARE THE HOMEOWNER PETITIONS ARE THEY SIMILAR? YES, I BELIEVE THERE WAS ONE FOR WATERTOWN THAT WAS PASSED SEVERAL YEARS AGO AND I THINK THERE WAS ONE ANOTHER ONE THAT WAS RECENTLY SUBMITTED TO THE
LEGISLATURE AND REFERRED TO THE COMMITTEE FOR WATERTOWN AGAIN FOR THIS YEAR AND GOING FORWARD THANK YOU. SO I MEAN HISTORICALLY THESE HAVE BEEN PRETTY WELL PRETTY YOU KNOW, THE CITY IS THE
LARGEST CITY WITH A TRIPLE-A BOND RATING DETERMINING WHAT MAKES THE MOST SENSE FOR ITS FINANCES AND HOPING THAT THE LEGISLATURE WILL DO WHAT IT HAS DONE NORMALLY. YES. THANK YOU SO MUCH.
THANKS FOR THE QUESTION BUT I'LL WAIT FOR ANOTHER ROUND. THANK YOU. THE CHAIR RECOGNIZES COUNCILOR COLETTE AS A PARTNER. COUNSELOR, THE FLOOR IS YOURS. THANK YOU, CHAIR. THANK YOU FOR BEING HERE. CFO AND AN ASSESSOR. THIS COUNCIL HAS HISTORICALLY
APPROVED THIS RESIDENTIAL EXEMPTION UP TO THE MAXIMUM FOR A 35% FOR MAXIMUM SAVINGS AND THAT'S SOMETHING THAT I DEFINITELY PLAN TO VOTE YES ON SO THAT WE CAN GIVE PROVIDE RELIEF FOR THOSE WHO NEED IT
MOST LIKE OUR SENIORS WHO ARE CASH RICH AND HOUSE POOR AND ON FIXED INCOMES AND OTHERS AS IT RELATES TO THIS PROPOSAL. I THINK THAT'S THAT'S CLEAR.
OBVIOUSLY THIS IS EXISTING IN THE BROADER LANDSCAPE THE ECONOMIC LANDSCAPE OF THE CITY OF BOSTON WITH WHAT'S HAPPENING UP AT THE STATE HOUSE. WE DO HAVE TO RECEIVE CERTAIN APPROVALS FROM THE STATE WHICH MEANS THAT WE NEED TO GATHER DATA FROM THE DLR AND THAT'S A
POINT THAT I WANT TO JUST DIG IN RIGHT NOW. I HAVE THE TIME I CAN YOU JUST WALK US THROUGH EXACTLY WHAT DATA THE DLR HAS CERTIFIED FOR THE FISCAL YEAR IF THEY HAVE INCLUDING THE FINAL LEVY LIMIT CLASS BY CLASS VALUATION TOTALS
AND THE AVERAGE SINGLE FAMILY TAX BILL AND EXPLAIN HOW THOSE NUMBERS TRANSLATE INTO THE PROJECTED 13% YEAR OVER YEAR INCREASE FOR RESIDENTIAL TAXPAYERS. SURE.
SO AT THIS STAGE IN THE PROCESS NOW IS THAT THE DA HAS CERTIFIED VALUES AND THEY'VE CERTIFIED NEW GROWTH OUT OF THE ITEMS THAT YOU'VE TALKED ABOUT THAT'S NORMAL FOR THIS TIME
OF YEAR AND NORMAL FOR WHERE WE WOULD BE IN TERMS OF HAVING THIS HEARING. HONESTLY, WE'RE HAVING THE HEARING A LITTLE BIT LATE RELATIVELY WE NORMALLY HAVE IT BEFORE VALUES OR GROWTH ARE
CERTIFIED FOR THIS PARTICULAR ITEM. THE OTHER ITEMS THAT YOU MENTIONED OVERLAY LEVY LIMIT TAX RATES THOSE ALL COME AFTER
THE COUNCIL TAKES ACTION ON THIS ORDER AS THIS ORDER IS PARTICULARLY IMPORTANT IN KIND OF BEING ONE OF THE LAST ITEMS TO SET ALL THOSE THINGS INTO
PLACE AND HAVE THEM BE FINALIZED. THANK YOU. AND THE AVERAGE RESIDENTIAL PERCENT INCREASE LAST FISCAL YEAR IT WAS IN BETWEEN 10% AND
15% CAN JUST CLARIFY THAT POINT WE ARE TRYING TO TAKE OUT. YEAH SO THE AVERAGE THE AVERAGE SINGLE FAMILY HOME RECEIVING THE RESIDENTIAL EXEMPTION I BELIEVE THE INCREASE LAST YEAR
WAS 10.4% BUT WHEN YOU EXPANDED THAT TO INCLUDE OTHER TYPES OF RESIDENTIAL PROPERTIES LIKE CONDOS OR LARGE APARTMENT BUILDINGS, THE INCREASE WAS MORE LIKE A 14.9%.
SO THAT WAS YEAH, LAST YEAR I'VE HEARD ANECDOTALLY THAT BECAUSE EAST BOSTON HOUSING MARKET IS SO HOT AND EVERYBODY WANTS TO MOVE THERE IT INCREASED MORE THAN OTHER NEIGHBORHOODS. IS THAT A FACT? CAN YOU SPEAK TO THAT
SPECIFICALLY ABOUT EAST BOSTON AND THE PERCENTAGE THERE FOR SO I KNOW IT'S COMPLICATED BUT IF YOU CAN TRY YEAH FOR A SINGLE APPRECIATE IT I DON'T HAVE THE DATA WITH ME TO BE ABLE TO GIVE
YOU A CONCRETE ANSWER ON THAT. I'M HAPPY TO GET THAT FOR YOU AND SHARE WITH YOU AFTER THE AFTER THE HEARING IF YOU WANT TO JUST LET ME KNOW WHAT YEAR YOU'RE LOOKING FOR AND WHAT
KINDS OF PROPERTIES WE COULD MAKE YOU SOME MAPS THAT KIND OF SHOW YOU DIFFERENT INCREASES FOR DIFFERENT PARTS OF THE DISTRICT. OKAY. THANK YOU. AND MY LAST QUESTION CAN YOU JUST EXPLAIN WHY THE
RESIDENTIAL INCREASE IS HIGHER THIS YEAR THAN LAST YEAR? YOU KNOW, WHAT ARE THE FACTORS? IS IT SPECIFICALLY BECAUSE OF THE MAGNITUDE OF THE COMMERCIAL VALUATION DECLINE OR OTHER FACTORS WHY THE
RESIDENTIAL VALUES ARE INCREASING MORE THAN LAST YEAR ? SO IN GENERAL THOSE INCREASE BECAUSE OF MARKET ACTIVITY, RIGHT? SO EVERY YEAR THE CITY AND
EVERY CITY IN MASSACHUSETTS IS OBLIGATED TO VALUE ALL PROPERTY AT FAIR MARKET VALUE AS OF A PARTICULAR POINT IN TIME. SO FOR FISCAL YEAR 26 THE VALUATION DATE WE'RE LOOKING AT
IS JANUARY 1ST, 2025 AND THEN WE'RE LOOKING AT MARKET ACTIVITY THAT OCCURRED KIND OF IN THE 12 MONTHS BEFORE THAT VALUATION DATE TO FIGURE OUT WHAT'S WHAT'S GOING ON AND TO
SET THOSE VALUES AND BUILD MODELS OFF OF THEM SO IT I THINK THE QUICK ANSWER IS MARKET ACTIVITY AND DEPENDING ON THE PROPERTY TYPE IF WE'RE
LOOKING AT RESIDENTIAL PROPERTY SOME PROPERTIES DURING CALENDAR YEAR 25 THOSE ARE RELATIVELY STABLE WITH THINGS GOING UP A LITTLE BIT AND MAYBE NOT AS MUCH AS THEY WERE HISTORICALLY
FOR A LONG TIME RESIDENTIAL PRICES WERE KIND OF ON THIS VERY STEEP UPWARD TRAJECTORY. THEY'RE STILL GOING UP. IT'S JUST THE HAS KIND OF SHIFTED TO BE MORE STABLE.
THANK YOU. THANK YOU. THANK YOU. THE CHAIR RECOGNIZES COUNCILOR FITZGERALD. KASSIE ON THE FLOOR THANK YOU CHAIR AND THANK YOU BOTH FOR
BEING HERE TODAY. SO I'D SAY START OFF JUST THE 35% RESIDENTIAL EXEMPTION IS A POSITIVE THING. I THINK THAT MANY OF US CAN AGREE ON THAT. A COUPLE OF QUESTIONS I HAVE
JUST TO CLARIFY FOR MYSELF BUT ALSO FOR ANYONE OUT THERE LISTENING IF PROP TWO AND A HALF IF EVERY YEAR WE GO UP TWO AND A HALF PERCENT ON THE TOTAL OVERALL VALUE OF OUR PROPERTIES
IN THE CITY IS FROM FROM HOW I UNDERSTAND IT, SOME FOLKS HAVE REACHED OUT AND SAY WHAT IF YOU DON'T GO UP TO THAT TWO AND A HALF AND TO NOT COLLECT AS MUCH? I UNDERSTAND THAT IF WE DO THAT
IN ONE YEAR EACH SUBSEQUENT YEAR IS A LITTLE BIT LESS BECAUSE YOU'VE KIND OF LOWERED THE VALUE OF THAT FIRST YEAR SO THE TWO AND A HALF PERCENT NEXT YEAR IS NOT AS MUCH AS IT WOULD BE BECAUSE YOU DIDN'T YOU DIDN'T COLLECT AS MUCH THE PRIOR YEAR.
COULD YOU TELL US IS THERE A WAY OR WHAT THE PROCESS WOULD BE TO IF WE CHOSE TO GO LESS THAN THE TWO AND A HALF FOR ANY REASON? WHAT THE PROCESS IS TO MAKE UP
FOR THAT OVER THE NEXT I DON'T KNOW HOW MANY YEARS IT TAKES I GUESS WHAT IS THAT PROCESS TO SORT OF MAKE UP ANY LOST LOST COLLECTIONS FROM IF WE DON'T GO THE FULL TWO AND A HALF?
JOHN THANKS SO MUCH FOR THE QUESTION. COUNCILOR SO THE WAY THAT THAT LEVY LIMIT WORKS IS IT'S POSSIBLE IN ANY GIVEN YEAR TO NOT COLLECT UP TO THE FULL
OF THE AMOUNT A LEVY IS SET BASED ON THE AMOUNT TO THE BUDGET THAT'S SENT EARLIER IN THE YEAR AND THE OTHER REVENUE SOURCES THAT WE HAVE.
AND SO IN GENERAL IT'S PRETTY FORMULAIC. IT'S BASICALLY LIKE SEEING HOW MUCH MONEY WE HAVE ALREADY APPROVED THAT WE ARE GOING TO SPEND WHEN WE SET THE BUDGET AND THEN IT'S MAKING SURE THAT
WE HAVE REVENUE SOURCES SET TO MEET THAT. SO IF IT TURNED OUT THAT WE DIDN'T NEED TO COLLECT THE FULL LEVY IN ORDER TO MEET THOSE REVENUE SOURCES, IT DOES NOT
PRECLUDE US SO WE WOULD LOSE THE MONEY FOR THAT YEAR? DEFINITELY AND NOT GET THAT BACK WHICH IS FINE. IT WOULDN'T MEAN IN THE FUTURE THAT WE WOULDN'T BE ABLE TO
COLLECT UP TO THAT HIGHER LEVY AMOUNT. WE WE WOULD THE WAY THAT YOU WOULD DO THAT IS BY INCREASING TAX RATES. SO LET'S SAY FOR EXAMPLE WE
HELD THE LEVY FLAT FOR FIVE YEARS AND DIDN'T COLLECT ANY SORT OF ADDITIONAL AMOUNT FROM THAT TWO AND A HALF PERCENT POTENTIAL GAIN AND THEN WE COLLECTED ALL AT ONCE IN YEAR FIVE THAT WOULD BE A DRAMATIC
INCREASE IN THE RESIDENTIAL AND COMMERCIAL TAX RATES TO KIND OF GET UP TO THAT NEW THRESHOLD. GOOD. THANK YOU VERY MUCH. AND ALSO LAST YEAR A LOT
OF PEOPLE OUT ON THE VALUATION OF HOMES RIGHT AT THE TAX RATE THAT HAS TO GET SAID BUT THE VALUE OF EVERYONE'S INDIVIDUAL HOME WAS ALSO A BIG DEAL. SOME WERE GROSSLY OVERVALUED
AND PEOPLE COMING IN WONDERING WHY IS YOU KNOW, WHY DID MY HOUSE INCREASE THREE, FOUR OR FIVE OR $600,000 WHEN I HAVEN'T TOUCHED IT IN YEARS ANYTHING FOR IF THAT HAPPENS AGAIN THIS YEAR COULD YOU JUST PLEASE
EXPLAIN HOW FOLKS CAN GO ABOUT REACHING OUT IF THEY FEEL THEIR HOME WAS GROSSLY OVERVALUED AND THUS RAISING THEIR TAXES RIGHT ALONG WITH THE TAX RATE?
WHAT IS THE PROCESS FOR THEM TO GO AND SAY I WOULD LIKE TO HAVE ANOTHER LOOK? YEAH, NO OF COURSE IT'S IT'S A REALLY GOOD QUESTION HONESTLY. SO THE ASSESSING DEPARTMENT IS
NOT THERE OVER 180,000 REAL ESTATE PARCELS ROUGHLY IN THE CITY RIGHT TAXABLE AND EXEMPT AND WE ARE OBLIGATED TO VALUE ALL OF THOSE PROPERTIES BUT IT'S NOT A PROCESS WHERE WE'RE
INDIVIDUALLY APPRAISING PROPERTIES. WE'RE DOING IT FOR THE BEST INFORMATION WE HAVE AND SOMETIMES THAT INFORMATION IS BAD AND SO IT LEADS TO BAD RESULTS, RIGHT? WE HAVE NO INTEREST IN HAVING
ANYONE'S PROPERTY BE OVERVALUED AND WE VERY MUCH LIKE VERY MUCH BUT LOVE IT FOR EVERYONE TO LOOK AT THEIR TAX BILLS EVERY YEAR, LOOK AT THE VALUE, LOOK AT THE STUFF IN THEIR NEIGHBORHOOD. WE PUT OUT ALL KINDS
OF INFORMATION ON OUR WEBSITE ABOUT SALES IN EVERY NEIGHBORHOOD IN THE CITY FOR DIFFERENT KINDS OF PROPERTIES SO PEOPLE CAN GO AND THEY CAN LOOK AND THEY CAN SEE WE TIED TO A MAP SO YOU CAN PULL UP YOUR ADDRESS.
YOU CAN SEE WHAT PROPERTY SOLD IN YOUR NEIGHBORHOOD, WHAT THEY SOLD FOR AND SEE IF YOU THINK THEY'RE LIKE YOUR HOUSE OR NOT AND IF VALUES TOO HIGH THE MONTH OF JANUARY YOU CAN FILE WHAT'S CALLED AN ABATEMENT APPLICATION.
IT'S PRETTY SIMPLE PROCESS. YOU BASICALLY FILL OUT YOUR NAME, TELL US YOUR ADDRESS AND IDEALLY TELL US WHY YOU THINK YOUR PROPERTY IS OVERVALUED. THE MORE INFORMATION YOU CAN
GIVE US THE EASIER IT IS FOR US TO FIGURE OUT WE NEED TO FIX AND THEN THE DEADLINE FOR THAT IS FEBRUARY 1ST UNLESS FEBRUARY 1ST FALLS ON A WEEKEND AND THEN IT'S WHATEVER THE NEXT BUSINESS
DAY IS. RIGHT. AND SO REALLY THE FIRST STEP IS JUST TO GET THAT FORM TO US. SO THEN WE KNOW THAT YOU WANT US TO COME LOOK AT YOUR
PROPERTY AND YOU'RE PRESERVING YOUR LEGAL RIGHTS. IT'S ALL A PROCESS THAT'S SET UP IN STATE STATUTE. WE HAVE TO RESPOND TO YOU WITHIN THREE MONTHS. THERE'S A WHOLE PROCESS. WHAT HAPPENS IF WE DON'T
RESPOND TO YOU? IF WE RESPOND YOU DON'T LIKE THE ANSWER BUT THE GOAL BY AND FAR IS FOR US TO VALUE EVERYONE
APPROPRIATELY NO ONE TO HIGH, NO ONE TO LOW. SO THAT WAY THE BURDEN IS SHARED FAIRLY. GREAT. THANK YOU MICHELLE WHAT IS THE WEBSITE JUST FOR FOLKS? SO IF THEY WANT TO PULL UP THAT MAP THAT SHOWS EVERYTHING YET
SO ALL THAT INFORMATION IS ON THE ASSESSING PERMANENT MAIN PAGE. WE PUT IT UP AFTER LIKE IN THE BEGINNING OF JANUARY KIND
OF RIGHT AFTER VALUES ARE SET AND PEOPLE GET THEIR BILLS SOON GO TO BOSTON DOT GOV BACKSLASH AS I SAY ALL RIGHT ACL CSI ANGIE THANK YOU VERY MUCH AND
THANK YOU FOR YOUR TIME CHAIR THAT'S ALL APPRECIATED. THANK YOU. THE CHAIR RECOGNIZES COUNSELOR BREADON AND COUNSELOR YOU HAVE THE FLOOR. THANK YOU. GOOD MORNING. MORNING.
HOW MUCH OF OUR CITY PROPERTY IN THE CITY IS TAX EXEMPT? I DON'T HAVE A PERCENTAGE WITH ME.
I WANT TO SAY IT'S AROUND 18,000 PARCELS. I'M NOT SURE THAT NUMBER IS PARTICULARLY HELPFUL. SO AM I RIGHT IN THINKING THAT
ABOUT 53% OF THE PROPERTY IN THE CITY OF BOSTON IS NOT IS TAX EXEMPT INCLUDING I OH NO, NO. IT'S NONPROFITS AND OUR
GOVERNMENT SO IT'S STILL CITY OWNED AND FEDERALLY OWNED PROPERTY SO THERE'S A HUGE CHUNK OF OUR PROPERTY THAT WE DON'T ACTUALLY TAX.
I HAVEN'T LOOKED RECENTLY BUT I HAVE NO REASON TO DISAGREE WITH YOU. OKAY. AND YOU KNOW THE KNOCK ON EFFECT OF THAT IS IT PUTS A HUGE OF PRESSURE ON OUR OR OTHER TAX PAYERS LIKE A
RESIDENTIAL SECTOR. I'M JUST WONDERING IN TERMS OF WE HAVE 180,000 REAL ESTATE PARCELS YOU SAID THAT THE ASSESSING DEPARTMENT HOW OFTEN
ARE THEY ASSESSED AND WHAT WHAT'S THE MECHANISM FOR FLAGGING UP PROPERTIES THAT ARE NOT PAYING AN APPROPRIATE LEVEL OF ASSET ARE NOT BEING ASSESSED
APPROPRIATELY SO WE'RE OBLIGATED TO ASSESS PROPERTIES EVERY SINGLE YEAR. THE REVIEW PROCESS WITH THE STATE VARIES DEPENDING ON WHETHER IT'S SOMETHING CALLED A
RECERTIFICATION YEAR OR NOT. WE MOST RECENTLY HAD A RECERTIFICATION YEAR LAST YEAR IN FISCAL YEAR 25 WHICH INVOLVES US SHARING A LOT MORE
REPORTS AND REVIEWING OUR MODELS. BUT IN INTERIM YEARS WE STILL TRAIN VALUES, WE STILL ASSESS PROPERTIES WE DON'T HOLD VALUES AT A PARTICULAR LEVEL UNTIL
LIKE THE NEXT RECERTIFICATION YEAR OR ANYTHING LIKE THAT. WE HAVE VARIOUS MAINTENANCE CYCLES THAT WE GO THROUGH IN DIFFERENT AREAS SO THAT WE TRY AND KIND OF TAKE THIS ENORMOUS AMOUNT OF WORK AND BREAK IT
DOWN AND IMPROVE DIFFERENT AREAS OVER TIME SO WE CAN KIND OF GET THE WHOLE CITY. AND THEN ONE OF THE MAIN WAYS THAT WE REVIEW PROPERTIES IS BY PEOPLE FILING IN APPLICATIONS. YEAH.
AND DO YOU HOW MANY ASSESSORS DO YOU HAVE? I WANT TO SAY IN EVALUATION HAVE STAFF AROUND LIKE 15 TO 20
PEOPLE. AND SO ONE PHENOMENON WE SEE IN OUR NEIGHBORHOOD AND I'M NOT I'M SURE I'M NOT JUST IS NOT THE ONLY DISTRICT IN THE CITY TO EXPERIENCE THAT BUT WE HAVE
LANDLORDS THAT BUILD WHAT LOOKS LIKE A DUPLEX AND IT'S SUPPOSED TO HAVE FOUR UNITS AND EACH FOUR BEDROOMS IN EACH UNIT BUT
IN FACT THEY HAVE A FOURTH THEY HAVE EIGHT BEDROOMS IN EACH UNIT SO THEY HAVE A TOTAL OF BEDROOMS AND THE BUILDING BRINGS IN A RENTAL OF ABOUT
18,000 A MONTH AND YET THE NEIGHBORS NEXT DOOR ARE ORDINARY FAMILY HOMEOWNERS WHO ARE WHO ARE DOING THE RIGHT THING. THEY PAY THEIR REGULAR PROPERTY TAXES.
BUT THESE OPERATORS ARE GAMING THE SYSTEM TO MAKE A OF A LOT OF MONEY OUT OF THEIR REAL ESTATE IN A RESIDENTIAL NEIGHBORHOOD DECREASING THE PROPERTY, THE QUALITY OF LIFE FOR THEIR NEIGHBORS.
BUT THEY'RE ALSO JUST MAKING A HUGE AMOUNT OF MONEY AND WE NEED TO BE ABLE TO HOLD THOSE PEOPLE ACCOUNTABLE AND MAKE THEM PAY THEIR FAIR SHARE. SO AND I THINK THERE'S A SOME
SORT OF A MISMATCH BETWEEN HOW WE HOW WE DO THIS LIKE IT'S IT MAKES PEOPLE FEEL VERY, VERY ANNOYED AND FEELING MISTREATED BY THE CITY IF WE CAN'T ADDRESS
THIS ISSUE OF PROPERTIES THAT ARE BRINGING A HUGE AMOUNT OF RENT AND BUT THEY'RE NOT BEING ASSESSED ON AN APPROPRIATE LEVEL NOW I VERY MUCH APPRECIATE THAT AND IT IS
IT'S A BIG CITY. THERE ARE A LOT OF PROPERTIES AND WE HAVE A RELATIVELY SMALL STAFF CONSIDERING THE PROJECT
ANY TIME THAT SOMEONE LETS US KNOW THAT THERE'S INEQUITY WE LOOK INTO IT AND DO WHAT WE CAN TO ADDRESS AND SO THAT'S THE THE BEST SUGGESTION THAT I WOULD HAVE IS THAT IF PEOPLE
FEEL THAT THAT'S OCCURRING IN A NEIGHBORHOOD OR IN A LOCATION AND LET US KNOW AND WE'LL WE'RE HAPPY TO TAKE A LOOK AT THE DATA AND SEE IF THERE'S SOMETHING IT NEEDS TO BE
CORRECTED IN TERMS OF THE NONPROFIT SECTOR, THE EDSON MEDS OBVIOUSLY ARE HAVING A REALLY ROUGH TIME AT THE MINUTE AND WE'RE WE'RE WORKING ON YOU KNOW TRYING TO GET TO PILOT
AGREEMENTS FOR THE I'M MAKING ANY PROGRESS LIKE I'M I THINK WE'RE MAKING SLOW STEADY PROGRESS BUT WE'RE NOT WE HAVEN'T ACTUALLY DELIVERED ANY MODIFICATION IN THE PILOT AGREEMENTS BECAUSE IT'S A
VOLUNTARY SYSTEM'S A VOLUNTARY AGREEMENT. ARE WE MAKING ANY PROGRESS ON THAT? YOU KNOW, I, I LIKE TO THINK THAT EVERY YEAR THAT WE CONTINUE TO HAVE AN EXISTING
PILOT PROGRAM, WE'RE IN ESSENCE MAKING PROGRESS BECAUSE THESE ARE RELATIONSHIPS THAT WE NEED TO MAINTAIN. AND AS YOU AS YOU MENTIONED, IT'S VOLUNTARY AND I THINK THAT
WE WE HAVE DECENT PARTICIPATION NOW BUT THINGS COULD ALWAYS BE BETTER AND THERE'S ALWAYS WAYS TO IMPROVE. I THINK WE HAVE BEEN HAVING A NUMBER OF CONVERSATIONS. THE ADMINISTRATION'S BEEN
HAVING A NUMBER OF CONVERSATIONS WITH THE INSTITUTIONS AROUND HERE. AS YOU RIGHTLY NOTED IS A CHALLENGING TIME FOR THEM. SO THOSE CONVERSATIONS ARE
MAYBE NOT AS EASY AS THEY USED TO BE BUT PEOPLE STILL WANT TO BE GOOD PARTNERS AND THEY WANT TO PARTICIPATE AND THEY WANT THE CITY TO SUCCEED BECAUSE THEY RECOGNIZE THAT THEIR
SUCCESS IN THE CITY SUCCESS ARE TIED TOGETHER SO I THINK THAT THERE IS THERE IS GOOD PROGRESS AND AS I SAID EVERY YEAR WE HAVE A CONTINUING PROGRAM IS IS
SUCCESSFUL HERE AGAIN I APPRECIATE IT'S CHALLENGING TIME FOR THE ESTIMATED IT'S ALSO REALLY CHALLENGING TIME FOR OUR RESIDENTS IN THE CITY WITH INCREASED ACROSS THE BOARD.
SO WE'LL CONTINUE TO PUSH THEM TO SEE WHAT WE CAN DO. THANK YOU. THANK YOU COUNCILOR THE CHAIR RECOGNIZES COUNCILOR FLYNN.
COUNCILOR, YOU HAVE THE FLOOR. THANK YOU, MR CHAIR. THROUGHOUT MY TIME AT THE CITY COUNCIL I HAVE CALLED FOR AND HELD HEARINGS ON PROVIDING PROPERTY TAX RELIEF FOR LONG
TIME RESIDENTS IN OUR SENIORS VETERANS AS WELL AS INCREASING THE RESIDENTIAL EXEMPTION IN OTHER MEASURES THAT WOULD PROVIDE TAX RELIEF TO ADDRESS
HIGH COST OF LIVING SUPPORT WORKING FAMILIES THAT ARE HAVING A DIFFICULT TIME MAKING ENDS MEET IN OUR CITY. THESE LONGTIME RESIDENTS HELP BUILD THE CITY WITH THE
CONTINUED UNCERTAINTY IN OUR ECONOMY DUE TO THE EFFECTS OF POST-PANDEMIC INFLATION AND HIGHER INTEREST RATES, IT IS MY CONTINUED BELIEF THAT THE CITY SHOULD SHOW OUR COMMITMENT TO
FISCAL RESPONSIBILITY, DISCIPLINE, ACCOUNTABILITY, TRANSPARENCY AND EXAMINE AREAS TO TIGHTEN OUR OWN BELT, OUR
OWN BELT AFTER AN 8% INCREASE CUTTING IMPLEMENT A HIRING FREEZE REDUCE SPENDING AND EXPLORE ALL ALTERNATIVE OPTIONS WITH FALLING COMMERCIAL PROPERTY VALUES.
THE CITY OVER 70% RELIANT ON PROPERTY TAXES AS WE MENTIONED HERE 50 52% 53% OF ALL LAND IS ABSORBED BY LARGE NONPROFIT
PARTNERS. WE HAVE LONG TERM FISCAL ISSUES TO DEAL WITH IN BOSTON THIS FORMAL FORMULA IS UNSUSTAINABLE IN MY OPINION AN 8% INCREASE
WAS SIGNIFICANT. I ALSO RECOMMENDED IMPLEMENT AND RECOMMENDED A HIRING FRAME FREEZE AND LOOK AT TAPPING OUR BUDGET RESERVE SURPLUS IN
INTEREST OF ABOVE 1 BILLION. WE SHOULD HAVE DISCUSSED OUR RELIANCE ON PROPERTY TAXES IN THE FACE OF COMMERCIAL PROPERTY VALUE CRISIS DUE TO REMOTE WORK
FOR THE LAST TWO YEARS THREE YEARS I HAVE CALLED FOR THE ESTABLISHMENT OF A BLUE RIBBON MADE UP OF BUSINESS LEADERS, LABOR LEADERS, GOVERNMENT OFFICIALS, RELEVANT EXPERTS,
NEIGHBORHOOD ORGANIZATIONS TO ADDRESS THE ISSUE OF DOWNTOWN VACANCIES AND A REVENUE CONCERN WHICH WAS UNANIMOUSLY PASSED BY A RESOLUTION BY THE BOSTON CITY
COUNCIL. I ALSO ALSO CALLED FOR A REVIEW OF THE PILOT PROGRAM. I ALSO SUGGESTED EXPLORING OTHER ALTERNATIVE WAYS TO HELP WITH REVENUE AND AVOID AN
INCREASE IN RESIDENTIAL PROPERTY TAXES LIKE USING A STATE SURCHARGE TO HELP WITH REVENUE. WE ALSO NEED TO RETHINK OUR BALANCE WHEN IT COMES TO REMOTE
AND IN-PERSON WORK. I CONTINUE TO SAY THAT WHILE IT MAY NOT BE POLITICALLY POPULAR, OUR CITY AND THE ECONOMY CAN NO LONGER AFFORD ALL SECTORS TO
WORK FROM HOME INDEFINITELY. YOU CAN CONTINUE TO CONTRIBUTE TOWARDS FALLING COMMERCIAL PROPERTY VALUES MAY BE A COMPROMISE THAT I RECOMMENDED
INCLUDING A FOUR DAY WORKWEEK IN FOR MORE IN-PERSON WORK THE CITY OF BOSTON A PRIVATE SECTOR NONPROFIT PARTNERS NEED TO WORK CLOSELY TOGETHER TO ENCOURAGE
WORKERS TO COME BACK AND BRING FOOT TRAFFIC BACK TO DOWNTOWN BOSTON. THE CBA SHOULD BE IN BOSTON AT
THE CITY HALL IN PERSON THAT IS STILL REMOTE SO IT CONTINUES TO BE A VALUABLE AND DESIRABLE PLACE TO DO BUSINESS AND REMAIN A KEY DRIVER OF OUR CITY STATE
REGIONAL ECONOMY IN MY OPINION IT'S NOT THE TIME FOR FINGER POINTING BETWEEN BOSTON IN THE STATEHOUSE WHAT IS NEEDED IS TO LOWER THE POLITICAL TEMPERATURE IN THE ROOM, HAVE COFFEE AND
WORK TOGETHER FIND COMMON GROUND, MOVE FORWARD IN A RESPECTFUL MANNER AND LISTEN TO EACH OTHER EVEN IF YOU DISAGREE WITH THEM AND TRY TO COME UP
WITH SOLUTIONS THAT WORK FOR EVERYBODY. THAT'S WHAT I BELIEVE. COMMISSIONER, IT'S GOOD TO BE WITH YOU. LET ME ASK YOU WE HAVE HEARD SOME DISCUSSIONS FROM CITY
OFFICIALS TALKING ABOUT POSSIBLE REFORMS TO PROP TWO AND A HALF. WHAT ARE SOME OF THE REFORMS YOU'RE LOOKING AT IN TERMS
OF POTENTIAL REFORMS TO PROPOSITION 12? THANK YOU SO MUCH FOR THE QUESTION, COUNCILORS. GOOD TO SEE YOU.
GOOD TO SEE I HAVEN'T HAD A CONVERSATION ABOUT REFORMS TO PROPOSITION TWO AND A HALF RECENTLY SO I'M I DON'T REALLY HAVE A GOOD ABILITY TO ANSWER
YOUR QUESTION DESIRE TO SEE THE CFO HAVE AN OPINION ON IT. THE MASS MUNICIPAL ASSOCIATION HAS BEEN DOING SOME WORK IN THIS AREA AND OUR DO I BELIEVE TO PUT OUT SOME RECOMMENDATIONS
FOR PROP TWO AND A HALF REFORM BUT WE YOU KNOW, WE'VE BEEN YOU KNOW, NOT REALLY BEEN PART OF THOSE CONVERSATIONS BUT YOU AWARE THAT THEY'RE DOING THAT
WORK AND ARE AWAITING TO SEE WHAT COMES OUT OF THAT SET OF RECOMMENDATIONS. OH, SO THE CITY THE CITY IS NOT LOOKING TO MAKE CHANGES TO PROP JOHN OUT THEM WELL, IT WOULD
REQUIRE STATE APPROVAL TO MAKE ANY CHANGES AND I THINK THERE'S JUST BEEN SOME KIND OF PRELIMINARY DISCUSSIONS THAT HAVE BEEN HAPPENING WITH THE OVER AT THE M.A. THAT WE AGAIN
HAVE BEEN IN RECEIPT OF AND AN AWARE OF BUT THERE'S NOTHING THAT WE ARE YOU KNOW WORKING ON OURSELVES HAS THE CITY ADMINISTRATION EXPRESSED AN OPINION ABOUT PROPOSITION TWO
AND A HALF OF MAKING REFORMS? YES, I BELIEVE THE MAYOR HAS MADE THEM BUT WHAT ARE SOME OF THOSE OPINIONS? I I DON'T WANT TO NECESSARILY TOTALLY SPEAK FOR HER BUT I
JUST BELIEVE THERE'S BEEN GENERAL COMMENTS ABOUT THE NEED TO RELOOK AT PROP TWO AND A HALF AND IT'S A 43 YEAR OLD LAW. AND SO I THINK THERE'S JUST BEEN GENERAL COMMENTS ABOUT THE
NEED TO LOOK AT IF IT STILL WORKS FOR MUNICIPALITIES TODAY . THANK YOU AND THANK YOU TO THE ADMINISTRATION TEAM FOR BEING HERE. I'M OUT OF TIME. I WANT TO BE RESPECTFUL TO MY CITY COUNCIL COLLEAGUES ALL THE
WAY TO THE NEXT ROUND. THANK YOU. THANK YOU COUNCILOR. I JUST WANT TO ACKNOWLEDGE THAT COUNCILOR DUNCAN HAS JOINED US. THE CHAIR RECOGNIZES COUNCILOR SANTANA THE DISCLOSURES. THANK YOU, MR CHAIR AND THANK
YOU CFO AND COMMISSIONER FOR BEING HERE THIS MORNING WITH US. CFO I THINK YOU MENTIONED IN THE PREVIOUS CONCERNS QUESTIONS ABOUT THE 2% DECREASE THAT
YOU'RE ALSO LISTENING TO ALL DEPARTMENTS AND THAT WORKS. SO WE PUT IN THAT FOR THIS UPCOMING FISCAL YEAR TO IT FOR THAT TO BE THE CASE. YES, WE'VE ASKED DEPARTMENTS TO
PROPOSE BUDGETS TO US THAT ARE 2% LESS THAN LAST YEAR. IT'S OBVIOUSLY A PROCESS. IT'S NOT AUTOMATIC AND WE'LL EVALUATE SORT OF WHAT COMES IN AND ALSO IDENTIFY IF THERE ARE OPPORTUNITIES TO GO FURTHER.
BUT THAT IS THE INITIAL REQUEST THAT'S BEEN MADE TO DEPARTMENTS . AND WHAT'S THE IS THERE A DIRECT CORRELATION TO TAX RELIEF FOR HOMEOWNERS IN DOING SO?
YES SO I THINK IT'S IT'S MORE IN RESPONSE TO OVERALL ECONOMIC CONDITIONS AND UNCERTAINTY. AS I MENTIONED PREVIOUSLY WE'VE SEEN REALLY ROBUST YEARS OF REVENUE GROWTH IN LAST
COUPLE OF YEARS AND JUST AS THE LARGER ECONOMY TO COOL WE'RE SORT OF REACTING TO THAT ANTICIPATION FOR FURTHER UNCERTAINTY. OKAY. WELL THANK YOU CFO TWO
COMMISSIONER OR TWO I GUESS DOES THE ADMINISTRATION TRACK HOW MANY FAMILIES WOULD FACE TO DISPLACE WOMEN WITHOUT THE RESIDENTIAL TAX RELIEF?
I'M NOT SURE IF WE HAVE INFORMATION AT THAT EXACT LEVEL, BUT WE RECOGNIZE THAT THIS WOULD BE I THINK THE EIGHTH YEAR IN A ROW OF DOUBLE DIGIT PROPERTY TAX INCREASES
AND SO OR MINDFUL OF THE IMPACT THAT THAT HAS ON ALL TYPES OF RESIDENTS IN THE CITY IN THIS HIGH COST ENVIRONMENT AND WE HAVE ANY DATA ON LIKE WHAT NEIGHBORHOODS ARE IMPACTED MORE
OR THROUGHOUT THE CITY I DON'T THINK SO. I KNOW. YEAH GREAT THEN IN TERMS
OF LIKE SO I HEARD YOU'RE LOOKING FOR THIS TO BE BROUGHT UP THIS UPCOMING WEDNESDAY I YOU KNOW THE URGENCY IS REAL. YOU MENTIONED A JANUARY 1ST
DEADLINE THERE. CAN YOU TALK ABOUT THE IMPACT OF NOW ON THAT PASSING THIS ON WEDNESDAY? YES. WHAT DOES THAT MEAN? YES. SO IF THERE'S NO ADOPTION OF A
RESIDENTIAL EXEMPTION AND CLASSIFICATION. OUR TAX BILLS WILL DEFAULT TO A SINGLE TAX RATE AND SO EVERYONE COMMERCIAL PROPERTY TAX PAYERS RESIDENTIAL TAXPAYERS WILL PAY
A SINGLE TAX RATE WHICH I BELIEVE THE COMMISSIONER SAID WAS $15.40. AS A POINT OF COMPARISON, THE RESIDENTIAL RATE FOR FY 25 WAS
$11.58 AND THE COMMERCIAL RATE WAS $25.96. SO THAT WOULD BE A SIGNIFICANT INCREASE FOR RESIDENTS AND A DRAMATIC DECREASE FOR COMMERCIAL PROPERTIES. SO IT'S IMPORTANT TO PASS BOTH
THE RESIDENTIAL EXEMPTION AND CLASSIFICATION SO THAT WE CAN MAINTAIN THAT BALANCE AND THEN MY FINAL QUESTION HERE THIS PROPOSAL WAS MADE UP OF THE
RESIDENTS OBVIOUSLY THE ADMINISTRATION AND THE SMALL BUSINESS OWNERS WERE AT THE TABLE AT THIS. CAN YOU JUST SPEAK TO YOU KNOW, I THINK THAT THERE'S THAT I
THINK IT WAS MORE TO LAST YEAR I'VE HEARD IT LESS THIS YEAR BUT I THINK IT'S STILL OUT THERE AND I GET THIS QUESTION OF YOU KNOW, WHAT DOES THIS MEAN FOR OUR BUSINESS COMMUNITY? ARE WE GOING AGAINST THEM? I MEAN I WANT YOU TO TALK ABOUT
THE SEAT AT THE TABLE THAT'S BUSINESS OWNERS HAVING THIS PROPOSAL IN THE HOME RULE PETITION. YEAH. SO WE HEARD AS YOU MENTIONED A LOT OF FEEDBACK FROM SMALL
BUSINESS AND SO IN THE ITERATION OF THE HOME RULE THAT IS CURRENTLY PENDING IN THE STATE HOUSE, THERE'S A COUPLE OF PROVISIONS IN THERE THAT ARE DESIGNED TO HELP BUSINESS THE
FIRST BEING AN INCREASE TO THE PERSONAL PROPERTY TAX EXEMPTION OR PERSONAL PROPERTY LIMIT WHICH IS CURRENTLY SET AT $10,000 WOULD ALLOW US TO INCREASE IT UP TO 30,000.
SO THAT WOULD BE DIRECT RELIEF TO SMALL BUSINESSES BECAUSE NOT EVERY SMALL BUSINESS IS DIRECTLY PAYING REAL ESTATE TAXES, RIGHT? THEY'RE LEASING A SPACE AND IT'S GETTING PASSED ON BUT THEY'RE NOT PAYING DIRECTLY.
WHEREAS WHETHER OR NOT YOU OWN OR LEASE SPACE YOU'RE YOU'RE POSSIBLY PAYING PERSONAL PROPERTY TAXES ON YOUR BUSINESS EQUIPMENT. AND SO BY INCREASING THAT EXEMPTION AMOUNT WE WOULD BE HELPING THEM DIRECTLY.
SO NO FURTHER QUESTIONS. THANK YOU ALL FOR BEING HERE. THANK YOU, MR CHAIR, FOR SHARING. THANK YOU. THANK YOU, COUNCILOR. THE CHAIR RECOGNIZES PEPPERED COUNCILOR GET THE FLOOR.
THANK YOU, MR CHAIR AND THANK YOU CHIEF AND COMMISSIONER BOTH FOR BEING HERE. I THIS IS PROBABLY THE NUMBER ONE TOPIC THAT I'M NOW HEARING ABOUT IN MY DISTRICT THAT WE HAVE A LOT OF PROUD HOMEOWNERS THAT TO MAKE A GOOD MAJORITY IN
MY DISTRICT REPRESENTING RATHER THAN MY PART OF MATTAPAN AND YOU KNOW AS WELL AS I GET THESE QUESTIONS I CAN'T HELP BUT ASK IN TERMS OF IF I WERE A HOMEOWNER HOW DO I FIND OUT
ABOUT THE APPLICATION FOR THE RESIDENTIAL EXCEPTION IN MY AUTOMATICALLY MOVED IN OR DO I HAVE TO APPLY EVERY SINGLE YEAR ? SO I JUST WANT TO LEARN ABOUT JUST THE OVERALL PROCESS. CAN YOU SHARE THAT WITH US?
YEAH NO TARPLEY THANK YOU SO MUCH FOR THE QUESTION COUNSELOR. SO THE RESIDENTIAL EXEMPTION IT'S SOMETHING THAT IN ORDER TO
QUALIFY IN THE YEAR THAT YOU BUY YOUR PROPERTY ON JULY 1ST YOU NEED TO OWN THE PROPERTY SO YOU NEED TO BE AN OWNER THAT'S ON THE DEED AND THEN YOU NEED TO OCCUPY THAT PROPERTY AS YOUR
PRINCIPAL RESIDENCE AND SO THAT THAT'S WHAT WE HAVE THE APPLICATIONS TO TRY AND FIGURE OUT ANY YEAR THERE'S A TRANSFER WE AUTOMATICALLY SEND AN
APPLICATION OUT TO THE NEW HOMEOWNER IN ORDER TO TRY AND GET TO GET THAT PROCESS STARTED BEFORE THE BILL SHOWS UP. IN GENERAL I ADVISE EVERYONE
THAT ASKS ME TO ALWAYS CHECK THEIR THIRD QUARTER BILL WHICH IS THE ONE THAT COMES OUT IN JANUARY AND DECEMBER BEGINNING OF JANUARY BECAUSE THAT'S THE BILL THAT TELLS YOU THE FINAL
EXEMPTION AMOUNT AND WHETHER YOU'RE GETTING IT OR NOT. SO IF YOU GET THAT BILL AND YOU DON'T SEE A RESIDENTIAL EXEMPTION DEDUCTION ON THE RIGHT SIDE NEAR WHERE IT SAYS HOW MUCH YOU HAVE TO PAY, THEN
YOU'RE NOT GETTING IT AND YOU SHOULD CALL US IF YOU THINK THAT YOU QUALIFY FOR THE QUALIFICATION DATE IF YOU DIDN'T BUY THE PROPERTY AS JANUARY 1ST. IT'S A LITTLE WEIRD. THERE ARE TWO DIFFERENT QUALIFICATION DATES BUT IT'S
THE JANUARY 1ST BEFORE THE FISCAL YEAR STARTS. SO RIGHT NOW LET'S SAY YOU OWN THE PROPERTY FOR LIKE LAST FIVE YEARS THIS COMING JANUARY OF 26 YOU GET YOUR PROPERTY TAX BILL
IT SAYS YOU DON'T HAVE AN EXEMPTION. THEN YOU GIVE US A CALL, WE'LL SEND YOU AN APPLICATION. ALSO WE USUALLY HAVE A LINK ON OUR WEBSITE IN JANEWAY WHERE YOU CAN DOWNLOAD AN APPLICATION
SO YOU DON'T HAVE TO CALL US AND YOU HAVE UNTIL APRIL FIRST TO GET THAT PAPERWORK TO US. IT HAPPENS EVERY YEAR AND TO PRESERVE YOUR RIGHTS AND SO THAT'S THAT'S EVERY YEAR WE TRY NOT TO MAKE PEOPLE APPLY FOR
THE RESIDENTIAL EXEMPTION EVERY SINGLE YEAR IN GENERAL IF YOU'RE LUCKY THEN WE DON'T HAVE REASON TO THINK THAT YOU'VE LEFT. WE DON'T SEND OUT A RENEWAL. WE DO DO RANDOM AUDITS
THROUGHOUT THE CITY BUT THE GOAL IS NOT TO MAKE EVERYONE JUST NEEDLESSLY GIVE US PAPERWORK FOR SOMETHING THAT TENDS TO BE PRETTY CONSISTENT AND STABLE BUT IT'S ALWAYS BEST TO CHECK EVERY YEAR ON YOUR
BILL TO MAKE SURE THAT YOU'RE STILL GETTING IT RIGHT. DO WE KEEP TRACK OF THE PEOPLE THAT DIDN'T APPLY FOR RESIDENTIAL EXEMPTION BUT MAY QUALIFY FOR IT? AND IF SO, IS THERE ANY
OUTREACH TO THOSE INDIVIDUALS? SO IN GENERAL OUR OUTREACH MOST OF OUR OUTREACH IS DONE THROUGH TAX BILLS SO WE HAVE AN INSERT THAT GOES TO THE THIRD QUARTER
TAX BILL TO TELL PEOPLE ABOUT THE PROGRAMS THAT THEY MAY QUALIFY FOR AND ENCOURAGE THEM TO CALL US AND YOU KNOW, WHEN WE GO OUT INTO THE COMMUNITY FOR VARIOUS MEETINGS AND EVENTS
WE TALK ABOUT THE PROGRAMS A LOT AND TALK ABOUT DEADLINES FOR THINGS LIKE THE RESIDENTIAL EXEMPTION AND THE ABATEMENT APPLICATION THAT WAS ABOUT EARLIER BY COUNCILOR FITZGERALD
. OTHER THAN THAT, OUR MAIN OUTREACH IS KIND OF PRODDING PEOPLE WHEN THERE'S A TRANSFER AND WHEN THEY FIRST ACQUIRE A PROPERTY TO SAY HEY THIS MIGHT
BE SOMETHING THEY'RE ELIGIBLE FOR, HERE'S AN APPLICATION, FILL IT OUT AND, SEND IT BACK TO US. OKAY. AND IS THAT SOMETHING THAT YOUR DEPARTMENT ASSISTS WITH ESPECIALLY I'M THINKING ABOUT
LIKE A FIRST TIME HOMEBUYER THAT MAYBE MAYBE IS GOING THROUGH THIS PROCESS FROM THE FIRST TIME? IS THAT A GOOD PARTNERSHIP THAT YOU DO WITH A HOMEOWNER? YEAH. SO WE DO A LOT OF WORK WITH
OTHER AREAS OF THE CITY WITH NEIGHBORHOOD DEVELOPMENT AND WITH FIRST TIME HOMEBUYERS PROGRAM AND WITH A STRONG TO MAKE SURE THAT THEY HAVE KIND
OF INFORMATION AND PAMPHLETS FROM US THAT THEY CAN PROVIDE FOR WHEN THEY ENCOUNTER RESIDENTS WHERE THERE MIGHT BE SOME ABILITY TO COLLABORATE SO THOSE ARE THINGS THAT WE WE DO TRY AND GET INFORMATION IN THE
HANDS OF ANYONE WHO MAY BE TALKING TO OUR RESIDENTS. OKAY. OKAY. THE REASON WHY I'M REALLY PAYING IN ON THIS SPECIFIC AREAS BECAUSE I THINK THE MORE AWARENESS WE CREATE FOR
HOMEOWNERS THE BETTER CHANCE THEY HAVE OF PAYING LOWER TAXES ESPECIALLY IN THESE CONVERSATIONS THAT WE'RE HAVING HERE TODAY. UM, I ALSO WANTED TO ASK A
LITTLE BIT ABOUT THOSE THE RESIDENTS WHO MAY BE CONSIDERED LOWER INCOME OWNER OCCUPANTS OBVIOUSLY COULD POTENTIALLY BE GOING THROUGH A DISPLACEMENT RISK.
IS THERE ANY MORE CONSIDERATION WHERE AN OPPORTUNITY FOR LARGER EXCEPTIONS FOR FOLKS WHO MAY FALL INTO THIS CATEGORY? WE HAD THOSE CONVERSATIONS? YEAH SO WE HAVE DEPENDING ON
THE CATEGORY AND THE CRITERIA WE HAVE A FEW OTHER EXEMPTION PROGRAMS THEN WE HAVE SOME DEFERRAL PROGRAMS TO TELL PEOPLE. SO WE HAVE A COUPLE
OF EXEMPTION PROGRAMS THAT ARE AIMED TOWARDS SENIORS AND THEN WE HAVE PROGRAMS THAT ARE AIMED TOWARDS VETERANS AND THEN WE HAVE DEFERRAL PROGRAMS THAT ARE
AIMED TOWARDS SENIORS AND THEN ALSO OUR HARDSHIP DEFERRAL PROGRAM. THE HARDSHIP DEFERRAL PROGRAM IS MEANT TO BE MORE OF MAYBE A SHORT TERM KIND OF STRUGGLE SITUATION SIMILAR TO THE ONE
THAT I THINK YOU'RE TALKING ABOUT AND SO THERE'S AN OPPORTUNITY TO APPLY AND FOR A RELATIVELY LOW INTEREST RATE HAVE YOUR TAXES DEFERRED UNTIL YOU'RE ABLE TO PAY FOR THEM.
THANK YOU, YOUR HONOR. MY TIME IS OUT BUT THANK YOU SO MUCH FOR JUST BREAKING THAT DOWN AND THINK IS ALWAYS HELPFUL FOR THE FOR CONTEXT IN THIS CONVERSATION. SO APPRECIATE YOU. THANK YOU. THANK YOU.
THANK YOU COUNSELOR AND THE RESIDENTIAL TAX EXEMPTION HAVE THE PLAN FOR EVERY YEAR THE SENIOR ONE THAT'S JUST A ONE TIME IT'S A IT'S SWITCHED SO THE SENIOR EXEMPTIONS YOU
ACTUALLY HAVE TO APPLY FOR EVERY YEAR THAT'S A TIED INTO A STATE REQUIREMENT THE RESIDENTIAL EXEMPTIONS YOU ARE NOT REQUIRED TO APPLY EVERY YEAR BUT IT'S GOOD TO CHECK
EVERY YEAR TO MAKE SURE THAT YOU'RE STILL GETTING IT RIGHT. THE POPULATION THAT QUALIFIES FOR THE RESIDENTIAL EXEMPTION IS IS MUCH MUCH LARGER AND AS A FOLLOW YOU PROPERTY TO PROPERTY OR DO YOU HAVE TO APPLY FOR IT
IF YOU WERE TO BUY A NEW HOME? THAT'S A THAT'S A GREAT QUESTION. SO ANYTIME YOU GO TO A NEW PROPERTY YOU WOULD NEED TO APPLY AGAIN IT DOESN'T FOLLOW A PERSON. AWESOME. THANK YOU. THE CHAIR RECOGNIZES COUNCILOR DIRK ENCAPSULATE THE FLOOR.
JOYCE THANK YOU SO MUCH CHERYL SO TODAY WE'RE DOING SOMETHING CURSORY THAT WE DO EVERY YEAR BUT WE'RE DOING IT WITH A BACKGROUND OF PETITION THAT THE CITY COUNCIL HAS PASSED THREE
TIMES. I TRULY BELIEVE IF YOU REPRESENT BOSTON YOU SHOULD REPRESENT BOSTONIANS AND IT'S WITH A LOT OF HONESTLY ANGER AT THE SENATE.
BUT I AM HERE TODAY I HAVE ANOTHER COMMITMENT IN THE COMMUNITY TODAY BUT I DECIDED TO BE HERE TO SHARE MY THOUGHTS . I UNDERSTAND THAT THE CITY IS
ENGAGING IN A 2% REDUCTION IN CITY DEPARTMENTS. OBVIOUSLY IN TERMS OF CITY WORKERS I HAVE CONCERNS ABOUT WHERE THAT IS HAPPENING.
OBVIOUSLY I THINK WE ALL KNOW BOSTON CAN'T DO A TEMPORARY OVERRIDE OF OUR TWO AND A HALF AND I THINK THE MAYOR'S
PROPOSAL IS THE ONLY AND THE CITY COUNCIL'S PROPOSAL THAT WE'VE PASSED IS MAKES IT THE ONLY AVAILABLE LEVER TO PRESENT EXTREME RESIDENTIAL TAX HIKES.
I WOULD LIKE TO PUT ON THE RECORD THAT BOSTON IS RECEIVING LESS STATE FUNDING THAN WE HAVE IN PREVIOUS DECADES AND THE IDEA THAT WE CAN FUND OUR
ENTIRE BUDGET WITH WITH YOU KNOW DECLINING STATE RESOURCES IS NOT POSSIBLE. WE KNOW COMMERCIAL ASSESSMENTS
ARE DOWN AND THAT WE DON'T HAVE THE ABILITY TO CHANGE THE LEVY . SO I GUESS MY QUESTIONS ARE TODAY WHAT HAVE THE CONVERSATIONS BEEN WITH THE SENATE?
ARE WE COMMUNICATING WITH THE SENATE, WITH THE MEDIA OR DO WE ACTUALLY HAVE LIKE A GOOD RAPPORT OR ARE WE TRYING TO HAVE THAT CONVERSATION?
AND OBVIOUSLY WE KNOW THAT ARE FEELING THIS I REPRESENT I MEAN A LOT OF FOLKS HAVE CALLED MY DISTRICT THE REDS TO ROXBURY DISTRICT.
I THINK THAT IT'S REALLY IMPORTANT THAT I REPRESENT THE MOST VULNERABLE IN MY DISTRICT. I ALSO THINK IT'S IMPORTANT THAT THERE HAVE BEEN OTHER TAX PROPOSALS THAT HAVE BEEN AT THE CITY COUNCIL THAT DO NOT
BENEFIT MY DISTRICT IN TERMS OF TAXING APARTMENTS MORE. SO I HAVE TO HAVE A VERY NUANCED, YOU KNOW, THOUGHT PROCESS IN TERMS OF MAKING SURE THAT I'M REPRESENTING MY CONSTITUENTS WELL.
BUT I KNOW THAT THIS IS GOING TO HIT YOUNG FAMILIES AND SENIORS AND MY DISTRICT AND I THINK THAT ANYONE WHO'S NOT UPSET ABOUT THIS AND UPSET
ABOUT THE SENATE COMPLETELY HONESTLY THEY THEY ARE NOT REPRESENTING BOSTON AND WE ARE
BOSTON IS THE MONEYMAKER FOR THE ENTIRE STATE. WE ARE THE ECONOMIC DRIVER. MY DISTRICT AN ECONOMIC DRIVER IN THE CITY OF BOSTON. THE IDEA I HAVE HEARD FROM COMMERCIAL REAL ESTATE OWNERS
THAT THEY DO NOT CARE WHAT HAPPENS HERE THAT THIS IS LIKE I THIS IS A MEDIA FIGHT. IT'S NOT I HAVE HEARD FROM COMMERCIAL OWNERS THIS IS THE
COST OF DOING BUSINESS, THIS CHANGE AND THIS TEMPORARY SHIFT THAT THEY WOULD BE ABLE TO ABSORB THIS THE SENIORS AND THE YOUNG FAMILIES I'M TALKING TO IN MY DISTRICT CANNOT ABSORB
THIS AND THEY CAN'T ABSORB IT YEAR TO YEAR. AND SO ANYONE WHO TRIES TO DOWNPLAY THE THE MOMENT THAT WE'RE IN RIGHT NOW IS NOT REPRESENTING OUR CONSTITUENTS.
I'M NOT A HOMEOWNER BUT I THINK IT'S INCREDIBLY IMPORTANT THAT I REPRESENT THOSE WHO HAVE BUILT THIS CITY AND THOSE WHO CONTINUE TO BUILD THIS CITY. SO I'LL GET OFF MY SOAPBOX AND
JUST ASK WHAT IS WHAT HAVE THE CONVERSATIONS BEEN? I WE KNOW THAT WE DON'T REALLY HAVE MUCH AVAILABLE TO US OTHER THAN THE TEMPORARY SHERIFF THAT THE CITY COUNCIL HAS PASSED
THREE TIMES. SO WHERE DO WE GO FROM HERE? THANK YOU, COUNCILOR. I JUST WANT TO PUT A POINT ON WHAT YOU WERE JUST SAYING WHERE I THINK THE POINT OF THE HOME
RULE PETITION IS REALLY ABOUT CREATING STABILITY FOR BOTH RESIDENTS AND ALSO COMMERCIAL TAXPAYERS. IT'S NOT MEANT TO OVERLY BURDEN ONE SIDE OR THE OTHER. IT'S REALLY ABOUT CREATING MORE STABILITY IN THIS MOMENT
OF TRANSITION. SO I THANK YOU FOR RAISING THAT. IN TERMS OF CONVERSATIONS WITH THE STATE, WE REMAIN OPEN TO HAVE CONVERSATIONS WITH ANYONE WHO WANTS TO TALK TO US ABOUT THIS BUT WE'RE HERE TODAY
BECAUSE WE ARE SORT OF UNDER A TIME CLOCK AND NEED TO PROCEED WITH ADOPTING A DOCKET THAT GETS US, YOU KNOW, THE MAXIMUM UNDER THE LAW THAT WE THAT EXIST TODAY. SO WE REMAIN HOPEFUL.
WE REMAIN WILLING TO HAVE CONVERSATIONS BUT ALSO RECOGNIZE THAT WE NEED TO MOVE FORWARD WITH THE LAWS AS THEY EXIST TODAY. YEAH. AND I STRUGGLED HONESTLY TO FIGURE OUT WHAT TO ASK YOU
BECAUSE I KNOW THAT YOU ARE DOING EVERYTHING YOU CAN. I WISH I WAS SITTING IN FRONT OF THE SENATE RIGHT NOW AND I COULD HAVE THAT CONVERSATION WITH THEM SO IN TERMS OF THE
PROP TWO AND A HALF I JUST WANTED TO ASK SO WE ARE NOT EXCEEDING THE LEVY CEILING BUT WE ARE EXCEEDING THE YEARLY OR WE ARE AT THE YEARLY LEVY
LIMIT. IS THAT CORRECT? YES, YES, THAT'S CORRECT. OKAY. SO IF WE WERE TO MAKE CHANGES I MEAN I KNOW THAT THERE BOSTON
CANNOT DO A TEMPORARY OVERRIDE. SO IF WE IF WE WERE TO OVERRIDE PROP TWO AND A HALF IT WOULD ARE WE ABLE TO OVERRIDE PROP TWO AND HALF WE WOULD NEED TO GET APPROVAL FROM THE VOTERS.
BUT BOSTON HAS NEVER IN THE 43 YEAR HISTORY OF PROP TWO AND A HALF SAW A PROP TWO AND A HALF OVERRIDE AND NOR ARE WE PROPOSING TO. YEAH THAT WAS MY UNDERSTANDING. SO WITHOUT THAT THIS IS THE ONE
I MEAN THE HOME RULE PETITION IS OUR THE ONE THING AT OUR FINGERTIPS WHICH IS NOT AT OUR FINGERTIPS GIVEN THAT IT HAS NOT GONE FURTHER BUT IT'S A ONE
PROPOSAL THAT CAN ALLEVIATE HOMEOWNERS. RIGHT. AND WE'RE NOT WE'RE NOT TRYING TO GET MORE REVENUE THAN WE'RE ENTITLED TO. WE'RE LIVING WITHIN OUR TWO AND A HALF PERCENT LEVY LIMIT. WE'RE SIMPLY TRYING TO REALLOCATE THE BALANCE OF THAT
LEVY LIMIT THROUGH OUR HOME RULE PETITION. OKAY. THANK YOU. NO, THIS IS REALLY HELPFUL AND I JUST WANT TO SAY AGAIN, THE HOMEOWNERS CANNOT ABSORB THIS
YEAR TO YEAR OVER AND OVER AGAIN AND I THINK THEY'RE THERE FEELING IT. AND AS A REPRESENTATIVE OF BOSTON AND I THINK WE ALL
SHOULD BE TOGETHER AND UNITED AND SAYING HOW CAN WE MAKE THIS HAPPEN? AND I AND I THINK IT'S REALLY OUR HANDS ARE TIED SO I'M I'M YOU KNOW, GOING TO SUPPORT THIS
ON WEDNESDAY IF THE CHAIR BRINGS IT FORWARD AND I THINK WE NEED TO BRING IT FORWARD. BUT IT'S JUST I I FEEL A LITTLE BIT DEFLATED THAT THIS BODY HAS
BEEN SO DISRESPECTED GIVEN THE SITUATION THAT WE'RE IN SO. THANK YOU, CHAIR. OKAY. THANK YOU. COUNSELOR CFO, YOU MENTIONED THE 88TH YEAR IN A ROW A DOUBLE
DIGIT BUT WAS IT AN INCREASE IN HOMEOWNERS PROPERTY TAX BILLS? YES, I BELIEVE IT'S THE WHEN YOU'RE LOOKING AT THE MEASURE OF AN AVERAGE SINGLE FAMILY HOME, THE TAX INCREASE FOR THE
AVERAGE SINGLE FAMILY HOME IS INCREASED IN DOUBLE DIGITS OVER THE LAST EIGHT YEARS. THAT'S RIGHT. GOOD POINT. PLEASE HOLD. OKAY. WE'LL CORRECT THAT.
ALL RIGHT. JUST WANT TO ACKNOWLEDGE THAT COUNCILOR MEJIA HAS ALSO JOINED US AS WELL. AND AFTER WE GET THIS ANSWER TO THE QUESTION, GO TO YOU FOR
QUESTIONS, COUNCILOR. MAYBE IT MAY TAKE US A MINUTE TO MAKE IT ALL RIGHT, COUNCILMAN, HERE YOU HAVE THE FLOOR.
GOOD MORNING, EVERYONE. THANK YOU, CHAIR. I AM ONE DOING JUST OUT OF CURIOSITY AND I JUST WANT TO
GO ON THE RECORD THAT I WILL SUPPORT ANYTHING THAT WILL HELP ALLEVIATE THE FINANCIAL BURDEN ON OUR RESIDENTS. SO I JUST WANT TO START WITH
THAT PUBLIC ACKNOWLEDGMENT. SO JUST KNOW WHERE I'M AT WITH THIS. I GUESS WHAT I'D LIKE TO LEARN A LITTLE BIT MORE ABOUT FOR THOSE FOLKS WHO ARE TUNING IN
YOU KNOW, EVERYONE KEEPS TALKING ABOUT THE HIGHER ED INSTITUTIONS AND OUR HOSPITALS BECAUSE THEY DON'T YOU KNOW, THEY PAY ME IN LIEU OF TAXES AND I KNOW THAT THERE'S SOME
LEGISLATIVE WORK THAT NEEDS TO HAPPEN FOR US TO EVEN BE ABLE TO DO ANYTHING IN REGARDS TO THAT. AND I'M JUST CURIOUS AT WHAT POINT IF ANY WILL THERE BE AN APPETITE FOR US TO EXPLORE
OTHER OPTIONS THAT DO NOT SOLELY JUST RELY ON RESIDENTIAL OR COMMERCIAL BECAUSE AT SOME POINT SOMETHING WILL HAVE TO GIVE? AND WHEN I LOOK AT HARVARD AND
I LOOK AT B.U. AND I LOOK AT NORTHEASTERN THESE INSTITUTIONS THAT ARE BUYING UP BLOCKS AND MAKING IT VERY DIFFICULT FOR FAMILIES TO BE ABLE TO EVEN STAY HERE IN THE CITY OF BOSTON. I'M CURIOUS AT WHAT POINT WILL
WE START CONSIDERING THEM AS VIABLE TARGETS FOR TAXES AS WELL? AND CORN COUNCILOR, THANK YOU SO MUCH FOR THE QUESTION.
I IT'S IT'S REALLY INTERESTING TO THINK ABOUT AND IT'S ALWAYS INTERESTING KIND OF TALK ABOUT OTHER POTENTIAL SOURCES OF REVENUE AND HOW THAT MIGHT KIND OF PLAY INTO THE MIX AND
WHAT CAN OFFSET WHAT RIGHT NOW THE PROPOSAL THAT WE PUT FORWARD WITH THE HOME RULE AND THE SHIFT IS NOT AS SIMPLE WAS
MENTIONING IT'S NOT ONE THAT'S DESIGNED TO GET US MORE REVENUE . IT'S ONE DESIGNED FOR US TO CONTINUE TO WORK WITHIN THE CONSTRAINTS OF THE SYSTEM THAT WE WE HAVE AND TO TRY AND
PREVENT DRAMATIC SWINGS. SO THAT WAS THE OBJECTIVE AND THAT'S KIND OF THE CONTINUING OBJECTIVE. I THINK IF WE COULD GET ACROSS THAT HURDLE THEN IT WOULD
CREATE ROOM AND SPACE FOR US TO HAVE CONVERSATIONS ABOUT THE OVERALL REVENUE MIX AND WHO PAYS TAXES AND WHO WE THINK SHOULD PAY TAXES AND KIND
OF START TO EXPLORE THE TOPICS THAT YOUR YOUR YOUR RAISING. BUT ALL OF THEM ARE TIED INTO STATE LAW, RIGHT? SO NONE OF THEM ARE THINGS THAT WE HAVE INDIVIDUAL DISCRETION IN. BUT THE COUNCIL AND THE
ADMINISTRATION COMBINED IT ISN'T SOMETHING THAT WE CONTROL OURSELVES. IT'S SOMETHING THAT NO MATTER WHAT WE WOULD NEED TO GO TO THE STATE FOR APPROVAL FOR IF WE VERY MUCH BEEN FOCUSED IN THE PAST FEW YEARS ABOUT TRYING TO
JUST HAVE SOME SENSE OF STABILITY WITHIN THE SYSTEM THAT WE HAVE NOW BEFORE WE KIND OF EXPLORE NEW OPTIONS FOR REVENUE. YEAH, YEAH. SO I'M JUST GOING TO FOR THE
RECORD AGAIN JUST SINCE THE DAY I STEPPED FOOT INTO THIS CHAMBER I'VE BEEN TALKING ABOUT THE ROLE THAT PILOT PAYMENTS CAN PLAY IN HELPING US AS A
CITY AND I THINK THAT WHILE IT MAY NOT BE THE APPETITE RIGHT NOW IN THIS MOMENT BECAUSE WE'RE DEALING WITH THIS URGENT MATTER, I THINK IT'S STILL WORTH ADVOCATING THAT WE CAN HAVE IT ALL AND WE SHOULD BE
LOOKING AT ALL DIFFERENT PATHWAYS TO STABILIZING OUR FINANCIAL CRUNCH AND I'M ALSO CURIOUS NOW AND I ONLY HAVE TWO
AND A HALF MINUTES IF YOU CAN JUST TALK TO ME A LITTLE BIT ABOUT PAINT THE SCENARIO I MEAN I KNOW THAT YOU LAID IT OUT HERE BUT FOR THOSE FOLKS WHO DON'T HAVE ACCESS TO THESE DOCUMENTS, IF YOUR HOME IF YOU
OWN A TWO FAMILY AND YOUR HOME IS ASSESSED THAT $800,000, WHAT WHAT WOULD THE PRICE POINT BE AND WHAT WOULD WHAT WOULD
POTENTIALLY BE THE THE LANDLORDS HYPOTHETICALLY GAME PLAN? SO BASICALLY WHAT I'M GOING TO GET AT IS THAT THEY'RE GOING TO PASS ON THE BURDEN TO THEIR RENTAL INCOME.
RIGHT. SO WE'RE GOING TO SEE A RIPPLE EFFECT ON FOLKS WHO ARE GOING TO HAVE A HARD TIME PAYING THEIR RENT. SO IF YOU CAN JUST KIND OF WALK US THROUGH THAT SCENARIO SO
THAT FOLKS WHO ARE TUNING IN CAN UNDERSTAND THE GRAVITY OF WHAT WE'RE DISCUSSING HERE TODAY. SURE. NO, I'M HAPPY TO. SO ON THE BRIEFING THAT THE COUNCIL WAS PROVIDED FOR, THESE
ARE EXAMPLES USING LAST YEAR'S TAX RATES BECAUSE THEY ARE KNOWN AND STABLE TO JUST DEMONSTRATE THE VALUE OF THE TWO PROGRAMS THAT ARE IN THE ORDER TODAY.
AND SO THE FIRST ONE IS CLASSIFICATION AND SO AN $800,000 HOME IF CLASSIFICATION WERE NOT TO GO INTO EFFECT
WOULD HAVE TO PAY $8,152 A YEAR IN TAXES. BUT DUE TO THE BENEFITS OF CLASSIFICATION THEIR TAX RESPONSIBILITY WOULD DROP TO
$5,079. SO IT'S A IT'S A 35% SAVINGS AND THAT'S KIND OF WHAT THE VALUE OF THE SHIFT IS TO TO A SPECIFIC PROPERTY THAT'S WORTH $200,000. RIGHT.
THE OTHER BENEFIT THAT WE'RE TALKING ABOUT TODAY IS THE RESIDENTIAL EXEMPTION AND WHAT WOULD HAPPEN IF THAT WERE TO GO INTO EFFECT. SO THAT SAME 800,000 HOME IF IT
IS OWNER OCCUPIED AND THEY QUALIFY FOR THE EXEMPTION THEN WITHOUT THE EXEMPTION THEY WOULD BE PAYING $9,064 AND THEN WITH THE EXEMPTION THEY WOULD BE PAYING THAT 5020 $79 SO
$0.09 NOW. SO THAT IS LAST YEAR SAVINGS OF JUST UNDER $4,000, 43% SAVINGS JUST PRETTY DRAMATIC.
I CALCULATED THIS MORNING WHAT I THINK THE RESIDENTIAL EXEMPTION MIGHT BE IF WE WERE TO PUT INTO EFFECT THIS YEAR WITH THE POTENTIAL TAX RATE THIS YEAR OF CLASSIFICATION AND
THE RESIDENTIAL EXEMPTION. AND SO THE MAXIMUM AMOUNT THIS YEAR IS PROJECTED TO BE 4,003.50 $3.74. IF THIS ORDER WERE TO PASS.
THANK YOU. AND WEDNESDAY IS THE LAST DAY OF OUR LEGISLATIVE CYCLE. SO I'M GOING TO ASSUME THAT WHATEVER WE PASS HAS A TIME TICKING CLOCK ON IT. RIGHT.
SO LET'S JUST UNDERSCORE AGAIN THE URGENCY AROUND WHAT WE'RE TRYING TO DO AND THE MOMENT WE'RE TRYING TO MEET. AND SO MY TIME IS UP CLEARLY SO I'M NOT GOING TO CALL YOU UP.
THANK YOU, CHAIR FOR THE GRACE. THANK YOU. THANK YOU, COUNSELOR. I CAN ANSWER YOUR QUESTION FROM EARLIER. OKAY. I APOLOGIZE. I MISSPOKE. IT WILL THIS WILL BE THE EIGHTH
YEAR IN A ROW WHERE RESIDENTIAL PROPERTY TAXES FOR THE AVERAGE SINGLE FAMILY HOME HAVE GROWN BY MORE THAN 5%. I APOLOGIZE. THANK YOU.
I KNOW IN OUR HOME THE PETITION THAT WE SENT UP SENT UP TO THE STATE HOUSE, IT INCLUDED TAX REBATES KNOWING THAT WE ARE ASKING DEPARTMENTS TO YOU KNOW ,DECREASE 2%.
YOU MENTIONED ECONOMIC UNCERTAINTY. WHERE ARE WE NOW? WHAT'S THE STANCE ON REBATES? YEAH, SO I THINK AS WRITTEN IN
THE LEGISLATION THE REBATES WERE ALLOWED FOR THE FISCAL YEAR THAT HAS PASSED. OF COURSE THAT COULD BE AMENDED AS WE SENT THE HOME RULE PETITION UP AS AMENDABLE.
BUT YOU MAKE A GOOD POINT THE KIND OF ECONOMIC SITUATION HAS CHANGED A BIT SINCE LAST YEAR AND SO IT ALWAYS GAVE US JUST THE OPTION TO DO IT. I DON'T THINK IT EVER REQUIRED
US TO DO IT SO IT WOULD HAVE TO BE AGAIN A DISCUSSION THAT WE WOULD NEED TO HAVE I THINK ALSO WITH THIS COUNCIL BECAUSE IT WOULD REQUIRE AN APPROPRIATION IF WE WERE TO DO IT AND THEN HOW A NEW GROWTH BE AFFECTED
WHEN BUILDINGS TEMPORARILY COME OFF THE TAX ROLLS. SO YOU KNOW WE HAVE A PILOT PROGRAM COMMERCIAL THE RESIDENTIAL. IS IT A NEGATIVE ON OUR TAX ROLLS? THAT'S A THAT'S A REALLY GOOD
QUESTION. SO IF A PROPERTY COMES OFF THE TAX ROLLS, IT DOES NOT IT DOESN'T IMPACT NEW GROWTH. WHAT IT DOES DO IS IT LOWERS
THE OVERALL VALUE OF PROPERTY IN THE CITY THAT'S TAXABLE. AND SO THE WAY THAT TAX RATES ARE CALCULATED IS YOU BASICALLY TAKE THE AMOUNT OF MONEY THAT YOU'RE ALLOWED TO COLLECT WHICH
IS THE LEVY AND YOU DIVIDE IT UP AMONGST THE PROPERTIES THAT ARE TAXABLE IN THE CITY. SO THE FEWER TAXABLE PROPERTIES WE HAVE, THE SMALLER THE GROUP OF PROPERTIES THAT IS SPLITTING UP THAT AMOUNT OF MONEY FOR THE
LEVY. SO DEPENDING ON YOU KNOW, ONE PROPERTY DOESN'T REALLY HAVE AN IMPACT TO THE SCOPE OF OUR CITY BUT IF THE MORE PROPERTIES YOU HAVE THE HIGHER VALUE OF THE PROPERTIES THAT ARE GOING OFF
THE TAX ROLLS THEN THAT WOULD END UP INCREASING THE TAX RATES . AND THEN NEW GROWTH SLOWED REALLY SLOWED IN THE PAST YEAR COMPARED TO THE PRIOR YEAR. YOU KNOW NUMBERS I HAVE HERE 90
MILLION TO 78 AND THEN I BELIEVE THE NEW NUMBERS OH NO, IT'S STILL OVER 60 MILLION. HOW DO WE SEE NEW GROWTH EVOLVING OVER THE NEXT FEW YEARS BASED ON WHAT WE'RE
SEEING IN CONSTRUCTION? THAT THAT'S A GREAT QUESTION AND ONE THAT THE CFO IS VERY INTERESTED IN THE ANSWER TO AND IS CONSTANTLY ASKING ME.
SO THE MY ABILITIES TO SEE THE FUTURE ARE LIMITED. THEY'RE OC BUT THEY'RE THEY'RE NOT DEFINITELY 100%. I THINK THERE'S A CLEAR REALITY
OUT THERE THAT COSTS HAVE INCREASED AND THAT CONSTRUCTION HAS DIPPED. CONSTRUCTION IS IN ESSENCE THE
MAJOR DRIVER OF OF NEW GROWTH AND SO OUR SOURCE OF REVENUE OUTSIDE FROM THE TWO AND A HALF PERCENT INCREASE OVER THE BASE. AND SO WE ARE PROJECTING THAT
THOSE NUMBERS ARE GOING TO CONTINUE TO DIP NEXT YEAR AND POTENTIALLY THE FOLLOWING YEAR WE'LL SEE HOW THINGS GO. I TEND TO BE VERY CONSERVATIVE
IN HOW I FORECAST IT SINCE THE CITY IS OBLIGATED TO HAVE A BALANCED BUDGET AND SO I PERSONALLY VIEW IT AS VERY BAD TO TELL THE CITY THAT THEY'RE GOING TO HAVE MORE MONEY TO
SPEND THAN THAN THEY ARE HOUSING. AND I'VE TAKEN IT YOU KNOW, VERY KEEN INTEREST AND PROPERTY TAXES AND YOU KNOW WE'VE BEEN DOING SOME RESEARCH.
ONE OF THE CASE STUDIES THAT I'VE DOVE INTO WAS A 500 APARTMENT UNIT BUILDING THAT'S LOCATED ATOP A COMMUTER RAIL STATION, TWO SUBWAY LINES AND
THE APARTMENT BUILDING HAS APPRECIATED IN VALUE 8.6% FROM 2021 TO NOW. AT THE SAME TIME, THE AVERAGE RESIDENTIAL PARCEL IN THE CITY
HAS APPRECIATED 27%. SO 8.6% FOR A 500 APARTMENT UNIT. 27% FOR A SINGLE FAMILY PARCEL. I KNOW YOU'RE VALUING THESE BUILDINGS PROPERLY SO I'M NOT
SUGGESTING OTHERWISE BUT WHAT IS TO A COMMERCIAL LANDS AND THE OTHER ONE IS NOT AND I WANT TO USE THIS TIME TO POINT OUT THAT NOT ONLY OUR LARGE APARTMENT BUILDINGS ARE PAYING
LESS ON A PER UNIT BASIS THAN SAY A CONDO IN A LARGE RESIDENTIAL BUILDING BUT ON TOP OF THAT THEIR VALUATIONS ARE NOT AS APPRECIATED AS QUICKLY DESPITE AND I THINK
COUNCILOR BREADON BROUGHT THIS UP DESPITE THE FACT THAT THEY'RE RAKING IN RENT INCREASES YEAR AFTER YEAR. SO WHEN WE SAY THE SYSTEM DOESN'T BENEFIT OUR HOMEOWNERS AND INSTEAD BENEFITS CORPORATE
LANDLORDS, THIS IS JUST ONE EXAMPLE OF THE INEQUITIES INSIDE OF OUR TAX CODE. I'M SAYING ALL THAT. ARE YOU ABLE TO PROVIDE A TOTAL VALUATION OF ALL RESIDENTIAL
APARTMENT BUILDINGS OF 30 UNITS OR MORE GOING BACK TO 2018? SO I DON'T HAVE THAT DATA WITH ME BUT IT'S SOMETHING MY OFFICE COULD PUT TOGETHER AND THEN CAN WE DO THE SAME THING FOR SINGLE
FAMILY HOMES? SURE. AWESOME. AND THEN CAN YOU PROVIDE THE BASELINE VALUATION NUMBER FOR NOW? WHAT IS THE ESTIMATED AMOUNT
OF HOMEOWNERS EXEMPTIONS THIS YEAR? I THINK IS SOMETHING THAT YOU PROVIDED IN THE PAST SAYING IF WE WERE TO PASS WHAT WE HAVE IN FRONT OF US NOW, WHAT WOULD BE THAT HOMEOWNER EXEMPTION NUMBER
FOR THIS YEAR? SO THE ESTIMATED VALUE THAT WOULD BE EXEMPT FOR 26 IF WE
HAVE A 3030, 35% EXEMPTION IS $351,108. SO THAT'S THE THE VALUE DEDUCTION AND THEN TWO, TRANSLATE THAT INTO TAX DOLLARS
WITH THE PROJECTED TAX RATE OF $12.40 MEANS THAT THAT WOULD BE A SAVINGS OF $4,353.74.
THANK YOU. I'M GOING TO DO SECOND ROUNDS OF QUESTIONS BUT BEFORE I GO TO SECOND ROUND I'M GOING TO SEE
IF WE HAVE ANYBODY SIGNED UP
FOR PUBLIC TESTIMONY. WE HEAR YOUR NAME CALLED PLEASE
COME DOWN TO ONE OF THE TWO MIKES, STATE YOUR NAME ANY AFFILIATION AND YOU HAVE 2 MINUTES TO TESTIFY. MICHAEL CAINE, I WANT TO THANK
YOU AND, UM, WE HAVE A KIDS THREE JUST JAISAL AND GERALDINE. SORRY.
CAN THE FLOOR IS YOURS. GERALDINE THE FELLOW WAS HERE. MY NAME IS JERRY MCEACHRAN AND
I'M AN OWNER DON AND SUPPORT AND IS A VALUES IN THE SEAPORT AREA ESCALATED MORE THAN NO SAY A DISTRICT WEST END OR SOME
OTHER PLACE OBVIOUSLY MATTAPAN OR SOMEPLACE LIKE THAT. WE'VE NOT ONLY BEEN HIT WITH HIGH CONDO FEES BUT TAXES AS WELL. A LOT OF PEOPLE ARE RENTING IT
OUT TO MAKE UP FOR YOU KNOW THE THEY CAN'T ALWAYS PAY FOR IT AND I DON'T THINK THAT A LOT OF FOLKS DOWN THERE HAVE MADE A LOT OF MONEY RESELLING.
THEY'VE ACTUALLY TAKEN SOME HITS YOU KNOW, SOME OF THE THREE BEDROOMS WAY UP IN THE PENTHOUSES HAVE MADE MONEY. BUT BASICALLY IT'S FOR ME IT'S A WORKING BUILDING. IT'S NOT LIKE YOU LIVE IN, YOU
KNOW, THE RICH LIFE EVEN THOUGH THERE'S A LOT OF AMENITIES AND ALL THAT. BUT SEAPORT SEEMS TO BE MORE EXPENSIVE THAN OTHER DISTRICTS. IS THAT CORRECT? OH, YOU HAVE TO DIRECT ALL
QUESTIONS TO THE CHAIR. NOTHING CAN BE DIRECTED TO THE THE PANEL IS NOT SURE UNDERSTAND THAT. YEAH YOU WOULD HAVE YOU JUST
GIVEN PUBLIC TESTIMONY AND RIGHT SO THERE'S NO ANSWER RIGHT? OH OKAY. AND THE OTHER THING IS YOU KNOW THIS AS FAR AS I'M CONCERNED I WALK ALL OVER BOSTON BUT WHERE ARE THE SERVICES THAT SOME
OF THE SERVICES HAVE BEEN DECREASED. THERE'S POTHOLES EVERYWHERE IN THE STREET. YOU KNOW IS A FRIEND OF MINE TOOK A TRIP THE OTHER DAY OF ONE OF THE POTHOLES THE CARS
THAT CARS ARE GETTING HIT. YOU KNOW, ALL THE TIME. AND THERE USED TO BE A TRUCK THAT USED TO GO AROUND AND FILL THOSE POTHOLES. IS THAT JUST A SIMPLE SERVICE THAT'S BEEN ELIMINATED BECAUSE
YOU CAN CALL 311 AND YOU SEND PICTURES AND A LOT OF THINGS ARE YOU KNOW, TAKEN CARE OF. SO ANYWAY, THANK YOU. YEP. AND I ALSO WANT TO ACKNOWLEDGE
THAT WE'VE BEEN JOINED IN THE CHAMBERS BY COUNCILOR BAKER NOW . OH, AND YOU ALSO HAVE COUNCILOR WEBB WHO ALSO JOINED US. SO BEFORE WE GO TO SECOND
ROUNDS OF QUESTIONS, WE WILL GO TO A FIRST ROUND OF QUESTIONS FOR COUNCILOR WEBER.
COUNCIL, THE FLOOR IS YOURS. THANK YOU, CHAIR. SORRY I HAD A SURVEILLANCE. OVERSIGHT ADVISORY BOARD
MEETING SCHEDULED AT THE EXACT SAME TIME. HAVE WE TALKED ABOUT YOU KNOW
WHAT IMPACT WE THINK THE THE MAYOR'S SORT OF INSTRUCTIONS TO REDUCE THE BUDGET BY 2% TO DEPARTMENTS AND HIRING FREEZES
WILL HAVE ON NEXT YEAR'S BUDGET. YES, SO I'LL TOUCH ON THAT A LITTLE BIT. SO IT'S REALLY IN RESPONSE TO THE LARGER ECONOMIC CLIMATE OUT
THERE AND THINGS ARE THINGS ARE SLOWING DOWN. THINGS ARE COOLING OFF AND SO WE ARE INSTRUCTING DEPARTMENTS TO PROPOSE BUDGETS THAT ARE 2%
LESS THAN LAST YEAR THAT WILL REQUIRE DEPARTMENTS TO ABSORB SOME OF THEIR KNOWN COST INCREASES AND POSSIBLY, YOU KNOW, MAKE REDUCTIONS BEYOND THAT.
IT WILL YOU KNOW, IT'S JUST THE BEGINNING OF A PROCESS. IT'S JUST A PROPOSAL. WE'LL SEE SORT OF WHAT DEPARTMENTS PROVIDE US. SOME 2% REDUCTIONS MIGHT NOT BE
POSSIBLE. YOU KNOW, OTHERS PERHAPS COULD GO FURTHER. SO IT'S REALLY JUST A STARTING POINT IN THE PROCESS. OKAY. AND SO I MEAN I THINK IT WAS
TWO YEARS AGO THE BUDGET WENT UP 8% LAST YEAR THE BUDGET WAS ABOUT FOUR FOR 4.4. ARE WE EXPECTING LOWER THAN THAT? A LITTLE TOO SOON TO TELL?
WE I THINK A BIG REASON WHY WE'RE NEEDING TO ASK DEPARTMENTS FOR REDUCTIONS IS WE'RE SEEING ENORMOUS COST GROWTH IN A LOT OF OUR NON-DISCRETIONARY COSTS LIKE OUR LONG TERM LIABILITIES.
OUR HEALTH INSURANCE COSTS ARE GROWING SIGNIFICANTLY. AND SO IT'S YOU KNOW, I WOULDN'T EXPECT THAT THE BUDGET WOULD SHRINK. I THINK, YOU KNOW, WE WOULD EXPECT NEXT YEAR'S BUDGET WOULD STILL GROW.
BUT AGAIN, TOO SOON TO TELL BY HOW MUCH. OKAY. LET'S SEE AND AGAIN IF THIS HAS ALREADY BEEN COVERED CHAIR JUST FEEL FREE TO CUT ME OFF CHAIR
FOR A MINUTE, OKAY? YEAH. IN TERMS OF, YOU KNOW, DIVERSE PEOPLE TALKING ABOUT DIVERSIFYING OUR REVENUE BASE
AND WE HAVE A TRANSFER FEE THAT WE'VE TRIED UNSUCCESSFULLY, YOU KNOW HAVE YOU TALKED ABOUT ANYTHING ELSE THAT WE'RE LOOKING AT THAT THAT WE WOULD
BE ABLE TO OBTAIN REVENUE THROUGH OTHER THAN THE PROPERTY TAXES? YES, AND WE HAVEN'T REALLY GOT INTO THAT SO A LITTLE BIT. I THINK THERE'S A COUPLE OF THINGS THAT ARE OUT THERE.
NUMBER ONE BEING THE GOVERNOR'S MUNICIPAL EMPOWERMENT ACT INCLUDES SOME ADJUSTMENTS TO EXISTING EXCISE TAX REVENUES THAT WOULD GENERATE ADDITIONAL REVENUE FOR THE CITY BEYOND
WHAT WE'RE ABLE TO COLLECT. WE TALKED A LITTLE BIT ABOUT THE MASS MUNICIPAL ASSOCIATION IS LOOKING INTO DIFFERENT TYPES OF RECOMMENDATIONS AROUND MUNICIPAL REVENUE GIVEN THE PRESSURES THAT OTHER
MUNICIPALITIES IN THE CITY ARE FACING ARE IN THE IN THE COMMONWEALTH ARE FACING. AND THEN THE MAYOR HAS EXPRESSED INTEREST IN CONVENING A REVENUE DIVERSIFICATION TASK FORCE IN THE NEW YEAR THAT WOULD LOOK TO DIFFERENT TYPES
OF OPTIONS THAT COULD PROVIDE MORE DIVERSE REVENUE FOR THE
CITY IN TERMS OF I GUESS THE C I. WELL I KNOW.
WELL SORRY. I'LL SCRATCH THAT. BUT THE YOU KNOW WHEN WE ARE
LOOKING AT SO I'M SORRY THE HOME RULE PETITION THAT WE HAVE AT THE IN THE STATE HOUSE. CAN WE I KNOW WE INITIALLY SORT OF 200% WE WERE TRYING TO SHIFT
THAT TO COMMERCIAL AND THEN WE SHIFTED IT TO ONE 81.5 IS THAT BUT THAT WAS FOR FY 25. SO IF WE PASSED IT WHAT WOULD THE SHIFT BE?
YES. SO AS DRAFTED FOR FY 26 THE SHIFT PERCENTAGE IS SAT AT 180%. OKAY. SO IF THAT PASSES IS 184 THIS
YEAR AND THEN 178 SO FAR 27 AGAIN AS AS PRESENTLY DRAFTED. OKAY. AND PROCEDURALLY THAT IT'S NOT THAT YOU'RE THE EXPERT IN THIS
BUT THAT THAT'S WHAT'S PENDING AT THE STATE HOUSE AND WE'D HAVE TO WE COULDN'T FILE ANOTHER HOME RULE OR WE WAIT. YEAH, THAT'S THE MAYOR'S POSITION WE'RE JUST WAITING ON. SO IT'S PENDING.
IT HAS YET TO RECEIVE A COMMITTEE ASSIGNMENT. AND THE WAY WE SENT IT UP LAST YEAR WAS AS AMENDABLE. OFTENTIMES HOME RULES ARE
AMENDABLE BUT WE INCLUDED A SPECIFIC PROVISION THAT WOULD ALLOW US OR THE LEGISLATURE TO AMEND THE HOME RULE. SO THAT IS WHAT'S CURRENTLY PENDING. SO HOPEFULLY BECAUSE THERE HAS
THAT AMEND ABILITY WE WOULD BE ABLE TO WORK WITH THE LEGISLATURE TO MAKE WHATEVER CHANGES ARE NECESSARY TO UPDATE IT AND THEREFORE NOT NEED TO FILE A NEW HOME RULE. OKAY.
JUST LAST QUESTIONS ABOUT PENSIONS AND YOU KNOW THAT HOW ARE WE DOING ON ON YOU KNOW, SATISFYING BECAUSE MY SENSE IS OVER TIME WE HAVEN'T HAD ENOUGH
MONEY, YOU KNOW, TO SATISFY ALL THE LIABILITIES FOR PENSIONS AND PAY OUR WORKERS THEIR PENSIONS AND WE'VE DONE A GREAT JOB SORT OF FILLING IN THAT GAP. BUT WHERE ARE WE? AND THEN IF WE IF WE DIDN'T
COLLECT, YOU KNOW, THE THE MAX YOU KNOW SET THE LEVY LIMIT AT THE HIGHEST LEVEL, HOW WOULD THAT IMPACT OUR ABILITY TO PAY PENSIONS? YES. SO OUR PENSION OBLIGATIONS ARE ONE OF OUR LARGEST COST GROWTH
ITEMS IN THE BUDGET AND PROJECTED TO BE WE ARE PROJECTED TO MEET OUR UNFUNDED LIABILITY IN FY 28. SO WE'RE GETTING CLOSE TO THE
END OF THAT SCHEDULE WHICH IS GREAT BUT NOT MAXIMIZING OUR LEVY WOULD REALLY IMPACT OUR ABILITY TO MAKE THOSE LONG TERM COMMITMENTS TO PAYMENTS TO OUR
LONG TERM LIABILITIES. AND IT'S YOU KNOW, BOTH THE MAXIMIZATION OF OUR TAX LEVY AND OUR COMMITMENT TO OUR LONG TERM LIABILITIES IS WHAT REALLY UNDERPINS THE CITY'S TRIPLE-A BOND RATING. IF YOU LOOK AT ANY OF OUR
READING OPINIONS OVER TIME THEY CITE THOSE SPECIFICALLY. SO I FEEL THAT THAT WOULD REALLY JEOPARDIZE THE RATING IF WE WERE TO MAKE ANY OF THOSE CHANGES. OKAY. THANK YOU, CHAIR. THANK YOU.
AND I SEE MICHAEL KANE HAS COME OF CAME BACK INTO THE CHAMBERS SO MICHAEL, I CALLED YOUR NAME FOR PUBLIC TESTIMONY BUT YOU WEREN'T HERE, SO I WANT TO GIVE YOU THAT OPPORTUNITY NOW TO
TESTIFY AND THEN WE'LL GO TO COUNSELOR COLLEAGUES FOR A SECOND ROUND OF QUESTIONS. THANK YOU, COUNSELOR, FOR
INVITING US TO TESTIFY. MICHAEL CAINE I'M THE DIRECTOR OF THE MASTERMINDS OF HER ATTENDANCE AND WE OBVIOUSLY SUPPORT ANY EFFORT TO MINIMIZE
TAXES PAID BY HOMEOWNERS AND CONDO OWNERS OF WHICH I AM ONE AS WELL AS IN PARTICULAR SENIORS WHO ARE PAYING EXCESSIVE HOUSE RATES. CATCH THE CASH POOR BY PAYING
EXCESSIVE TAXES. SO WE OBVIOUSLY SUPPORT THE HOME RULE PETITION. I UNDERSTOOD TODAY'S HEARING WAS ALSO A NEWER PROPOSAL.
NO, IT'S A DIFFERENT ONE. OKAY. WELL THEN I'M JUST GOING TO JUST SUPPORT OBVIOUSLY THE CITY'S EFFORTS TO GET A JUST ALLOCATION. ONE THING I WOULD WANT TO BRING
UP WHEN WE WERE FIGHTING FOR THE CITY RENT SUBSIDY PROGRAM SOME YEARS AGO, WE LEARNED THAT THE CITY WHEN THIS IS RELATING
TO NEW REVENUE THAT IS EXEMPT FROM THE TWO AND A HALF LIMIT WHEN THE CITY OF FILES WHEN THE CITY BUILDS NEW HOUSING THE
COST OF THE NEW PRODUCTION AND THE OF THE COST OF THE TAXES IS BASED ON THE COST OF CONSTRUCTION NOT ON THE COST OF SALES IN THE CASE OF CONDOS.
SO WHAT THAT MEANS IS THAT THE CITY IS MISSING OUT ON NEW REVENUE OUTSIDE OF THE TWO AND A HALF LIMIT BECAUSE IF YOU THEN IF YOU BUILD A BUILDING LIKE MILLENNIUM TOWERS AND YOU
ONLY ARE ASSESSING THE VALUE OF IT AT THE COST OF PRODUCTION OF IT AND THEN THEY SELL THE UNITS FOR TWO OR THREE TIMES THAT IN THE NEXT FEW YEARS THAT
NEW REVENUE FROM THE SALE OF UNITS IT JUST COMES AT THE EXPENSE OF SHIFTING THE MONEY AROUND WITHIN THE TWO AND A HALF LIMIT THAT'S NOT OUTSIDE OF THE TWO AND A HALF LIMIT AND
I'M NOT CLEAR WHY THAT IS THE CASE BUT PERHAPS THIS ASSISTANT COMMISSIONER COULD INDICATE IT. BUT THERE'S BEEN 13,000 APARTMENTS AND CONDO UNITS
BUILT IN THE LAST SEVERAL YEARS AND THEY'RE BEING ASSESSED AT THE OUTSET FOR THE TWO AND A HALF EXEMPTION PURPOSE THAT THE COSTS OF PRODUCTION BECAUSE
OF CONSTRUCTION RATHER THAN THE SALE VALUE OF THE CONDOS. THAT'S SOMETHING THAT I THINK YOU ALL MAY WANT TO LOOK AT. THANK YOU. I WILL NOW GO BACK TO
COUNCIL COLLEAGUES FOR A SECOND ROUND OF QUESTIONS. I MEAN I ASSUME IF YOU'RE HERE YOU HAVE YOU HAVE MORE QUESTIONS. SO STARTING WITH COUNCIL PRESIDENT LOUIJEUNE. THANK YOU, MR CHAIR. AND THANK YOU TO MICHAEL AND TO
EVERYONE WHO PROVIDED PUBLIC TESTIMONY. AGAIN, I THINK IT IS IMPORTANT TO JUST STATE AGAIN THAT LIKE THIS IS SOMETHING THAT WE DO HAVE NOW BUT ON THE
COUNCIL THIS IS MY SECOND TERM. WE DO THIS WHETHER OR NOT THERE'S A FORMAL PETITION BEFORE THE STATE HOUSE THIS IS PART OF OUR OBLIGATION SO THAT WE CAN SET THE TAX RATE EVERY
YEAR AT 125% FOR COMMERCIAL PROPERTIES AND SO THAT WE CAN PROVIDE THE RESIDENTIAL EXEMPTION. AND SO I JUST WANT THAT TO BE CLEAR LIKE JUST I THINK THAT THERE ARE TWO CONVERSATIONS ARE
RELATED BUT THIS IS PRETTY ROTE AND ROUTINE FOR THIS BODY TO IT PROBABLY I DON'T KNOW IF THERE'S ALWAYS EVEN BEEN A HEARING ON. THERE'S ALWAYS BEEN BEEN THERE'S ALWAYS A HEARING OKAY
ON THE TAX CLASSIFICATION THEN WE VOTE ON IT. BUT I THINK THERE'S OF COURSE HEIGHTENED HEIGHTENED INTEREST AND URGENCY ON THE TOPIC GIVEN THE PENDING STATE HOUSE UP
STATE HOUSE BILLS BOTH PROPOSED BY THE MAYOR AND OTHERS THAT HAVE SEEN NO ACTION AND I THINK THAT'S WORTH RESTATING AS WELL. AND IT'S ALSO WORTH REMINDING THAT THERE'S THIS HOMEOWNER
THESE WERE HOMEOWNER ADDITIONS WERE NOT TIED UP IN A VACUUM OR BY HOMEOWNERS THEMSELVES. IT WAS DONE AT THE TABLE WITH THE BUSINESS WITH BUSINESS LEADERS WHO AGREED THAT THESE
WERE CHANGES TEMPORARY CHANGES THAT COMMERCIAL PROPERTY OWNERS COULD ASSUME AND COULD INTERNALIZE FOR A LIMITED
PERIOD OF TIME AS WE DO THE WORK OF SEEING WHAT'S HAPPENING NATIONALLY IN THE COMMERCIAL REAL ESTATE MARKET AND DOING SOME OF THE LOOKING AT THE
BUDGET AND DOING SOME SEE WHERE SOME THERE SHOULD CAN BE SOME COST CHANGING MECHANISMS. YOU SPOKE TO IT I MEAN IF A HOMEOWNER PETITIONS AREN'T SEEING MOVEMENT WE ARE A HOME A
HOME RULE AUTHORITY STATE AND AS YOU ANSWERED COUNCILOR WEBBER'S QUESTIONS, THE ISSUE OF FURTHER DIVERSIFYING OUR REVENUE IS ALSO AS DIFFICULT BECAUSE IT
REQUIRES AUTHORIZATION FROM THE STATE AND I JUST THINK IT'S REALLY BECAUSE I MEAN MY QUESTION IS DO YOU WANT TO BE A PART OF LIKE WHAT ELSE ARE WE DOING TO DIVERSIFY OR TO LOOK
AT HOW WE CAN DIVERSIFY OUR REVENUE WITH THE UNDERSTANDING THAT EVEN THOSE CONVERSATIONS WITH THE TRANSFER OR WITH WHATEVER ELSE ARE JUST AS DIFFICULT IF NOT MORE DIFFICULT
BECAUSE AGAIN THESE TAX SHOWS HAVE HISTORICALLY BEEN SOMETHING THAT THE STATE HOUSE HAS DONE FOR BOTH THE CITY OF BOSTON AND FOR OTHER MUNICIPALITIES PRETTY ROUTINELY .
BUT I HAVE A QUESTION I THINK MORE SO FOR YOU, COMMISSIONER, WITH RESPECT TO WHO GETS THESE TAX BILLS. IT'S A QUESTION THAT I'M DEALING WITH. IT IS THE PROPERTY OWNERS WHO ARE BILLED EVEN UNDER A TRIPLE
NET LEASE. YES. THERE'S NO OTHER THERE'S NO WAY FOR THE CITY TO BILL THE RENTER OR THE COMMERCIAL RENTER YET.
NO, THE THE PROCESS OF WHO BILLS GETS INTO IS ALSO SET BY STATE LAW AND SO IN ORDER TO MAKE SURE THAT OUR TAXES ARE VALID AND REPRESENTATIVE THAT
WOULD LEAVE IF SOMEONE DOESN'T END UP PAYING THEM RIGHT IT THIS BILL TO THE OWNER AS OF THE RECORD DATE WHICH IS THE JANUARY 1ST BEFORE THE FISCAL YEAR BEGINS AWESOME AND SO THE LEAN THEN WOULD THEREFORE BE
PLACED ON THE PROPERTY OWNER. YES AND NOT ON THE COMMERCIAL TENANT. THAT'S RIGHT AND IF THERE'S ANY SORT OF LIABILITY IT IS THEN THE COMMERCIAL OWNER WHO WAS THEN POTENTIALLY FILING SOME
SORT OF CLAIM OR A LAWSUIT AGAINST THE COMMERCIAL RENTER. YEAH, THAT WOULD THAT WOULD BE CORRECT. SO NOT KNOWING WHAT THE RELATIONSHIP IS IN TERMS
OF LIKE WHAT SET OUT IN THE LEASE WITH THAT PRIVATE MATTER BETWEEN THOSE TWO PRIVATE PARTIES AS FAR AS THE CITY IS CONCERNED, IT'S AN ISSUE THAT HAS TO DO WITH THE REAL ESTATE AND HAS TO DO WITH THE OWNER OF THE REAL ESTATE AND SO DOES
THAT. THIS IS NOT DIRECTLY RELATED TO THIS ISSUE BUT DOES THAT CHANGE AT ALL? IT WAS A PROPERTY WHERE LET'S SAY THERE WAS SOME SORT OF DEAL
STRUCK OR IT'S A IT'S A COMMUNITY SPACE PURSUANT TO A PDA PROJECT. DOES THAT CHANGE AT ALL? SO THERE ARE LOOK IT COULD BE
DIFFERENT IF IT WAS THAT GOVERNANCE SO THE COMMUNITY BENEFIT ASPECT NO IF YOU'RE TALKING ABOUT YOU KNOW LEASES WHERE PEOPLE ARE LEASING FROM GOVERNMENT ENTITIES THERE'S A
DIFFERENT LAW THAT ALLOWS FOR THE TAXATION OF THAT LEASE AS IF THE TENANT IS THE OWNER AND APPLIES VERY SPECIFICALLY AND THEN CHANGES DEPENDING ON WHAT THE ORGANIZATION IS LIKE.
THERE'S A WHOLE BUNCH OF DIFFERENT LAWS THAT KIND OF GOVERN LEASES OF GOVERNMENT SPACE. BUT THE GENERAL RULE IS THAT
BILLS ARE ALWAYS TAXED TO THE OWNER AND SO EVEN IF YOU HAVE A LET'S SAY YOU HAVE A NONPROFIT OWNER THAT THEIR PROPERTY WOULD BE EXEMPT IF THEY WERE OCCUPYING IT, IF THEY HAVE A
CLEAR COMMERCIAL BUSINESS THAT IS OCCUPYING THE SPACE, WE STILL SEND THE BILL TO THE PROPERTY OWNER NOT TO THAT TENANT. THE ONLY INSTANCE WHERE WE BUILD TENANTS IS PURSUANT
DIRECTLY TO STATUTE WHEN IT'S A LESSEE OF GOVERNMENT PROPERTY. OKAY. UNDERSTOOD. OKAY. THANK YOU FOR THAT. I DON'T HAVE ANY ADDITIONAL QUESTIONS WITH RESPECT TO WHAT IS BEFORE THIS BODY BECAUSE
LIKE I'VE DONE EVERY YEAR I WILL BE VOTING IN FAVOR OF THIS ROUTINE DECLASSIFICATION AND ALSO I HOPE CONTINUE THE ADVOCACY THAT THIS BODY HAS DONE IN PASSING ONE MORE
PETITION TO PROVIDE RELIEF TO OUR HOMEOWNERS RELIEF THAT WAS AT ONE POINT AGREED TO AS A COMPROMISE LEGISLATION WITH OUR BUSINESS COMMUNITY AND POLICY LEADERS HERE IN OUR CITY.
I THINK IT'S THE RIGHT MOVE. I THINK IT'S THE RIGHT MOVE FOR OUR RESIDENTS. I THINK IT IS FAIR AS WE CONTINUE TO DO THE WORK OF OF TRYING TO BE A CITY LIKE ANY OTHER CITY THAT IS DEALING WITH CHANGES AND FLUCTUATIONS IN THE
COMMERCIAL REAL ESTATE COMMERCIAL REAL ESTATE INDUSTRY AND MAINTAIN THE POWER OF OUR TRIPLE-A BOND RATING WHILE MAKING SURE THAT WE ARE DOING WHAT'S NEEDED FOR OUR RESIDENTS WHO ARE HOUSE RICH IN CASH FOR
THANK YOU. THANK YOU CHAIR THE CHAIR RECOGNIZES COUNCILOR COLETTE AS A PARTNER COUNCIL YOU HAVE THE FLOOR. THANK YOU AGAIN. CHAIR AND AGAIN THANK YOU FOR ALL OF YOUR QUESTION OR YOUR ANSWERS TO OUR QUESTIONS.
SO JUST HEARING PUBLIC TESTIMONY FROM THE THE INDIVIDUAL I FORGET HER NAME FROM THE PART I THINK GERRY WAS WAS HER NAME SHE WAS TALKING ABOUT YOU KNOW, WE'RE SEEING AN INCREASE BUT WHAT ABOUT ALL THESE POTHOLES THAT I'M SEEING
IN MY STREET AND THAT IS EXACTLY WHAT I AM GETTING FROM THE FROM MY RESIDENTS AND I WOULD LOVE TO READ AN EMAIL THAT I RECEIVED FROM A VETERAN
IN CHARLESTOWN WHO WILL GO UNNAMED. BUT HE TOOK TIME OUT OF HIS DAY YESTERDAY TO SEND ME THIS EMAIL IF YOU WOULD JUST GIVE ME THE THE GRACE HERE. SO GOOD MORNING. COUNCILOR GABRIELLA CULLEN IS A
PARTNER WITH ALL THE DISCUSSION OF WHO SHOULD BE PAYING THE HIGHER TAXES. I HEAR NO MENTION OF THE OBVIOUS ALTERNATIVE CUT THE BUDGET 13% TAX INCREASE FOR HOMEOWNERS HOW ABOUT A 20% CUT
IN THE CITY BUDGET? IT WORKS FOR ME SINCERELY I'M NOT GOING TO ADD HIS NAME BUT HE ALSO PUT A COMMA FED UP IN CHARLESTOWN. SO CAN YOU JUST SPEAK TO THE ACCUSED?
ANSWER HIS QUESTION. I MEAN IF WE ARE GOING TO ASK OUR HOMEOWNERS TO OBVIOUSLY WE WANT TO MAKE SURE WE PASS THIS FIRST. THAT'S THE OBVIOUS DOCKET IN FRONT OF US HERE AND THEN WE'RE
TALKING ABOUT THE HOME RULE PETITION. WHAT IS THAT WHAT DOES THAT MEAN IN CITY SERVICES BECAUSE THAT IS THE CORE FUNCTION OF AT LEAST FOR ME I'M NOT I SPEAK FOR OTHER COLLEAGUES BUT THE CORE FUNCTION OF MY JOB AS A
DISTRICT CITY COUNCILOR IS ENSURING THE DELIVERY OF ESSENTIAL CITY SERVICES SHOWCASING THAT WE ARE LISTENING TO RESIDENTS THAT WE ARE PROVIDING CHANGES THAT
BETTER THEIR LIVES, WHAT THEY SEE AT THEIR FRONT DOOR. I THINK THIS IS FORMER CITY COUNCILOR TIM MCCARTHY'S MAIN THING THAT HE USED TO SAY BUT WHAT PEOPLE SEE OUT THEIR FRONT DOOR MATTERS AND IT IMPACTS THE QUALITY OF LIFE.
AND SO IF WE ARE THINKING ABOUT ,YOU KNOW, A 2% DECREASE, WHAT DOES THAT MEAN BUT ALSO WHAT WOULD IT MEAN FOR FED UP AND CHARLES TOWNS PROPOSAL AS WELL
TO CUT THE BUDGET 13% SPECIFICALLY ON CITY SERVICES I THANK YOU FOR THE QUESTION SO I JUST DID QUICK MATH SO IF WE
WERE TO CUT 20% FROM OUR ROUGHLY $4.8 BILLION BUDGET, THAT'S NEARLY $1,000,000,000 THAT WE WOULD NEED TO CUT FROM THE CITY BUDGET THAT IS ENORMOUS YOU KNOW KIND OF DOGE
LEVEL CUTS AND WE SAW HOW WELL THAT WORKED. BUT THE POINT IS THE KIND OF ORDER OF MAGNITUDE THAT YOU WOULD NEED TO REDUCE FROM THE CITY BUDGET IN ORDER TO HAVE
THE SAME IMPACT AS OUR HOME RULE PETITION IS IS SIGNIFICANT. SO SORT OF IN ANTICIPATION OF THIS WE DID SOME QUICK MATH IF YOU WERE TO ATTEMPT TO KEEP
THE RESIDENTIAL TAX RATE THE SAME FOR NEXT YEAR THE SAME AS WHAT IT CURRENTLY IS THAT WOULD REQUIRE A BUDGET OR A REDUCTION IN THE OVERALL TAX LEVY AND A
BUDGET CUT OF ABOUT $232 MILLION TO THE MIRROR FOR FY 26. THE SAME IMPACT ON THE
RESIDENTIAL TAX RATE AS THE 180% SHIFT THAT WOULD BE A REDUCTION OF THE LEVY OF 116 MILLION. SO I KNOW IT SEEMS RELATIVELY
SMALL IN THE CONTEXT OF A $4.8 BILLION BUDGET BUT SO MUCH OF OUR BUDGET IS NON-DISCRETIONARY. IT COSTS IT'S OUR IT'S OUR PENSION OBLIGATION, IT'S OUR HEALTH INSURANCE, IT'S DEBT SERVICE.
AND SO WHEN YOU REALLY DON'T HAVE DISCRETION OVER MAKING THOSE PAYMENTS, THE THING YOU HAVE TO DO IS GO TO CITY SERVICES AND HUNDREDS OF MILLIONS OF DOLLARS OF REDUCTIONS TO CITY SERVICES IN A TIME WHEN WE'RE HEARING
YOU KNOW, THAT THERE ARE ALREADY STRETCHED REALLY THIN WOULD BE DEVASTATING AND I THINK WOULD DO IRREPARABLE HARM TO THE SERVICES THAT WE PROVIDE TO RESIDENTS AND BUSINESSES. THANK YOU.
THANK YOU FOR CLARIFYING THAT AND I DO APPRECIATE MY COUNCIL COLLEAGUES QUESTIONS ABOUT OUR OUR PENSIONS AND LIABILITIES. OBVIOUSLY THAT IS THE WORST CASE SCENARIO AND THAT'S NOT SOMETHING WE EVER WANT TO
ENTERTAIN WHERE WE ARE DIGGING INTO OUR CITY SERVICES, OUR PERSONNEL LINE ITEM. SO THANK YOU. I KNOW THAT SOME TIME AND I JUST WANT TO THANK YOU CHAIR AND THANK YOU BOTH FOR BEING HERE. THANK YOU. COUNCILOR THE CHAIR RECOGNIZES COUNCILOR BRAYTON.
COUNCILOR THE FLOOR IS YOURS. THANK YOU. AND THIS IS ANOTHER QUESTION FROM A CONSTITUENT THERE IN IN THE NEIGHBORHOOD THERE'S A THREE UNIT CONDO IN A
RESIDENTIAL NEIGHBORHOOD THAT'S NOT FOR THE LAND THAT IT SITS ON. IT'S JUST A REGULAR THREE FAMILY HOME THAT'S BEEN COMPROMISED AND THEN THERE'S
ANOTHER NEIGHBOR WITHIN SPITTING DISTANCE THAT'S A TWO FAMILY AND THEY ARE CHARGED FOR THEIR LAND. THERE'S A LAND ASSESSMENT ON THE LAND VALUE.
WHY IS THERE THIS DISCREPANCY BETWEEN THE CONDO ON A ON A PLOT OF LAND AND A WHOLE OF TWO FAMILY THAT'S ON A PLOT OF LAND? WHY IS THE CONDO NOT CHARGED
FOR THE LAND? THANK YOU SO MUCH FOR THE QUESTION, COUNSELOR. SO CONDO ASSESSMENTS ARE UNIQUE IN THAT THEY ARE THE ONLY PARCELS THAT ARE SPECIFICALLY
DEFINED IN STATUTE AND SO IT'S NOT THEY ARE NOT BEING CHARGED FOR LAND. I WOULD ARGUE THAT IS NOT TRUE . BUT THE WAY THAT THEIR VALUE IS
ESTABLISHED IS THAT EACH UNIT IS CHARGED FOR THE SPACE OF THE UNIT THAT HAS TO BE ON LIKE A FILE PLAN FOR REGISTRY OF DEEDS AND THEN ITS PERCENTAGE INTEREST IN THE COMMON AREA AS
CONTROLLED BY THE CONDOMINIUM MASTER DEED. AND SO THE CONDO UNIT ITSELF COULD NOT EXIST IF THERE WERE NOT LAND THAT WAS SITTING UPON.
AND SO THE ASSESSMENT IS BASED ON SALES OF COMPARABLE CONDO UNITS. THAT'S THE WAY THAT WE DETERMINE MARKET VALUE FOR CONDOMINIUMS. IT'S CALLED A SALES APPROACH SIMILAR APPROACH WE USE FOR TWO
FAMILY HOMES BUT THE WAY THAT THE VALUE OF THE SPACE IS DETERMINED IS WHAT THAT CONDO WOULD SELL FOR AND THAT PRESUMES THAT THE LAND EXISTS.
SO IT IS NOT SOMETHING WHERE WE ARE SEPARATELY VALUING THE LAND AND THEY ARE GETTING A DISCOUNT. BOTH OF THOSE PROPERTIES ARE VALUE IN A SALES APPROACH SO IF SOMEONE'S GOING TO COME AND BUY THE THING THAT YOU OWN WHAT
WOULD THEY PAY FOR IT? SO THAT THAT INCLUDES THE BUILDING AND THE LAND FOR BOTH OF THOSE THINGS THE WAY IT SHOWS UP ON A TAX BILL IS DIFFERENT BECAUSE OF STATE LAW. YEAH. SO THE BACKYARD IS IS VALUED,
IT'S SPLIT THE VALUE OF THE BACKYARD IS SPLIT BETWEEN THE THREE CONDO UNITS. YES. SO IT'S INCLUDED IN ALL OF THOSE UNITS VALUE IF THEY ALL HAVE ACCESS TO THE YARD, IF IT'S SET UP WHERE ONLY ONE OF THEM HAS ACCESS TO THE YARD
THEN ONLY THAT ONE PAYS FOR THE YARD. OKAY, EXCELLENT. AND THE ONLY QUESTION I HAVE ABOUT, YOU KNOW, HEALTH INSURANCE PREMIUMS AND ALL THIS
CONVERSATION AT THE NATIONAL LEVEL ABOUT TAX TAX REBATES FOR CONDO IN THE IN THE IN THE
AFFORDABLE CARE ACT AND WE'VE BEEN ABLE TO GET TAX RELIEF ON YOUR CONDO ON YOUR LAND TALKING TO THE LAST QUESTION ON YOUR HEALTH INSURANCE PREMIUMS IS
THERE EVER ANY CONVERSATION ABOUT POOLING ALL OF THE FOR HEALTH INSURANCE ACROSS THE BOARD LIKE YOU KNOW, THERE'S SORT OF ECONOMIES OF SCALE THAT YOU CAN NEGOTIATE A BETTER
PRICE. IS THERE ANY EVER ANY CONVERSATION ABOUT HAVING ALL THE MUNICIPALITIES IN MASSACHUSETTS NEGOTIATE ACROSS THE BOARD PRICE FOR HEALTH
INSURANCE LIKE ALMOST INCREASE THE SIZE OF THE BUCKET AND GET A BETTER DEAL SO THIS EXISTS IN
THE FORM OF THE GROUP INSURANCE COMMISSION AT THE STATE AND MANY MUNICIPALITIES OPT TO JOIN THAT FOR COST REASONS.
WE IN THE CITY OF BOSTON HAVE THE PUBLIC EMPLOYEE COMMITTEE COMMITTEE OR THE P C IN WHICH WE WORK WITH OUR UNION PARTNERS TO YOU KNOW, DESIGN PLANS AND
AND GO OUT TO BID FOR OUR HEALTH INSURANCE COST. BUT IT IS COMMON FOR MUNICIPALITIES TO JOIN THE GC FOR EXACTLY THE REASON YOU
TALKED ABOUT BUT WE CHOOSE TO DO SOMETHING DIFFERENT WE CHOOSE TO DO SOMETHING DIFFERENT BECAUSE I THINK THE HISTORY IS PREVIOUSLY ALL KIND OF HEALTH BENEFITS WERE INDIVIDUALLY NEGOTIATED AND ALL OF THE DIFFERENT UNION
CONTRACTS AND THAT WAS PRETTY INEFFICIENT. AND SO WE HAVE THIS NEW MODEL OR YOU KNOW NEW THE LAST COUPLE YOU KNOW, SEVERAL YEARS WHERE WE WORK DIRECTLY WITH THE
UNIONS AND PROVIDE BENEFITS FOR ALL OF OUR EMPLOYEES REGARDLESS YOU KNOW, KIND OF REGARDLESS OF THE UNION YOU'RE IN. BUT IT'S AN ANNUAL IT'S A NEGOTIATION THAT WE ENTER INTO
EVERY COUPLE OF YEARS AND WE DO A COMPARISON OF OKAY, WHAT IF WE GO OUT ON OUR OWN VERSUS IF WE DECIDE TO JOIN THE GRC? SO THAT IS A CONVERSATION THAT WE HAVE REGULARLY. YEAH.
SO YOU KEEP TABS ON WHETHER OR NOT IS STILL WORKING FOR US. YES THE WAY WE DO IT. YES. EXCELLENT. THANK YOU. THANK YOU THE CHAIR RECOGNIZES COUNCILOR FLYNN. COUNCILOR YOU HAVE THE FLOOR.
THANK YOU, MR CHAIR. I STILL BELIEVE IT'S NOT THE TIME FOR FINGER POINTING BETWEEN BOSTON AND THE STATE SENATE. I DO BELIEVE THE STATE SENATE
CARE ABOUT THE CITY AND WHAT HAPPENS IN THE CITY. SO I DO WANT TO ACKNOWLEDGE THEM. IT'S ABOUT WORKING TOGETHER IN MY OPINION WE NEED TO LOWER THE
TEMPERATURE IN THE ROOM AND HAVE A DISCUSSION WITH EACH OTHER EVEN IF WE DISAGREE. RE FINDING COMMON GROUND IS IMPORTANT AS WE MOVE FORWARD IN
A RESPECTFUL MANNER BUT BUT BUT TO BUT TO CALL THE STATE SENATE AS IF THEY'RE NOT CONCERNED ABOUT THE RESIDENTS OF BOSTON
IS IS FALSE LET ME LET ME GO BACK TO COMMISSIONER CAN YOU EXPLAIN TO ME THE TAX SUPPORT
SYSTEM YOU HAVE TAX RELIEF I SHOULD SAY FOR VETERANS AND DISABLED VETERANS. CAN YOU JUST GIVE US A LITTLE BIT OF BACKGROUND? I DO KNOW A LOT OF VETERANS DO WATCH THE PROGRAM AND I WANT TO
GIVE THEM A LITTLE BIT OF BACKGROUND INFORMATION PLEASE. YEAH, NO, OF COURSE. THANK YOU SO MUCH FOR THE QUESTION, COUNSELOR. SO OUR VETERAN EXEMPTION
PROGRAMS THEY ARE CREATED BY STATUTE. THEY'RE THESE SUBCLASSES OF CHAPTER 59 SECTION FIVE THE CLAUSES ARE 20 THROUGH 22
THROUGH 20 TO F AND THEY PROVIDE RELIEF TO IN VARIOUS CIRCUMSTANCES MOST OF THEM ARE RELATED TO SERVICE CONNECTED
DISABILITIES AND THEY ARE SOMETHING THAT NEEDS TO BE APPLIED FOR EVERY SINGLE YEAR WE SEND OUT APPLICATIONS TO
ANYONE THAT WAS RECEIVING IT THE PRIOR YEAR USUALLY AROUND MID-AUGUST TO EARLY SEPTEMBER AND TRY AND GET THOSE BACK AS
QUICKLY AS POSSIBLE SO WE CAN MAKE SURE THAT THAT EXEMPTION THEN SHOWS UP AT THE FIRST AVAILABLE OPPORTUNITY WHICH IS THE THIRD QUARTER BILL. BUT THE ACTUAL FINAL DEADLINE FOR ANYONE THAT ISN'T RECEIVING
IT IS APRIL 1ST. SO FOR EXAMPLE THIS YEAR WILL BE APRIL 1ST OF 2026. SO ANYTHING THAT ANYONE THINKS THAT THEY MIGHT BE ELIGIBLE FOR I HIGHLY RECOMMEND THEY GO ON TO OUR LOOK AT THE MATERIALS
THERE CALL OUR TAXPAYER REFERRALS ASSISTANCE CENTER THAT PHONE NUMBER 6176354287 SO THAT MY STAFF CAN KIND OF TALK
THEM THROUGH THE PROGRAMS AND FIGURE OUT WHETHER IT MAKES SENSE FOR THEM TO APPLY WHENEVER THERE'S DOUBT WE ALWAYS ENCOURAGE PEOPLE TO APPLY BECAUSE THE WORST THAT HAPPENS IS THAT WE SAY NO, I
DON'T WANT TO EVER PREVENT ANYONE FROM APPLYING FOR SOMETHING THAT THEY MIGHT POTENTIALLY QUALIFY FOR. THAT IS ALSO A PROGRAM THAT
RELATIVELY RECENTLY BUT FISCAL YEAR 26 WILL BE THE FIRST YEAR THAT THE OF THOSE EXEMPTIONS ARE TIED TO A COST OF LIVING.
SO BEFORE THEY HAD BASELINE AMOUNTS OF $400 UP TO 1500 DOLLARS AND THE CITY WAS ALREADY IN A PROGRAM THAT
POTENTIALLY DOUBLED THOSE AND SO IT WOULD BE 800 TO POTENTIALLY 3000. BUT NOW IN ADDITION TO THAT DOUBLING WE ALSO THIS COUNCIL AND THE ADMINISTRATION
PASSED AN OPTION TO ALLOW FOR COST OF LIVING ADJUSTMENT TO HAVE THOSE AMOUNTS INCREASED. THEY'VE BEEN STATIC THOSE LEVELS FOR FOR QUITE SOME TIME NOW. WELL THANK YOU COMMISSIONER FOR THAT ANSWER.
ONE THING I WANTED TO DO COMMISSIONER MAYBE NEXT YEAR OBVIOUSLY FEBRUARY, MARCH I'D LIKE TO HAVE A CITY COUNCIL HEARING JUST ON HOW
VETERANS COULD APPLY WHAT THE PROCESS WOULD BE FOR APPLYING BASIC BASICALLY A PUBLIC AWARENESS CAMPAIGN. BUT MAYBE I'D LOVE TO HAVE YOU AS AS A GUEST AS A AS ADMINISTRATION OFFICIAL TO
TESTIFY. I DON'T WANT TO TRY TO GET THE INFORMATION OUT TO AS MANY DISABLED VETERANS AS I CAN THROUGHOUT THE CITY AND JUST JUST FOR THE RECORD AND BEING
TRANSPARENT, I, I DO RECEIVE SOME SOME ASSISTANCE TAX RELIEF BECAUSE I'M A SERVICE CONNECTED VETERAN BUT I WANT TO I WANT TO
HELP OTHER VETERANS PARTICIPATE IN THE PROGRAM AS WELL. THANK YOU, MR CHAIR. THANK YOU. THE CHAIR RECOGNIZES COUNCILOR ME HERE. COUNCILOR THE OTHER FOUR THANK
YOU. I'M CURIOUS IF YOU HAVE SINCE YOU'VE BEEN RUNNING NUMBERS CHIEF, IF YOU COULD IF YOU HAPPEN TO KNOW WHAT THE NUMBER
WOULD BE TOTAL THAT WE WOULD BE OUT AND EITHER SAVING OR LOSING IF WE DON'T DO THAT IT IF WE DON'T COLLECT IF WE DON'T PASS
THIS ON WILL PETITION SO I WANT TO MAKE SURE I UNDERSTAND YOUR QUESTION. I WANT TO MAKE SURE YOU AND I MAKE SURE I EVEN UNDERSTAND THAT I GUESS WHAT I'M TRYING TO IS WHAT I'M TRYING TO UNDERSTAND.
OKAY. JUST FOR THE SAKE OF THE EXERCISES FOR FOLKS WHO ARE JUST TUNING IN SO THAT THEY UNDERSTAND THE GRAVITY OF WHAT WE'RE TRYING TO DO HERE CAN YOU GIVE ME A BALLPARK FIGURE IN TERMS OF THE DOLLAR AMOUNT
OF WHAT WE WOULD BE LOSING IF THIS IF WE DON'T TAKE ACTION. YES. SO OKAY, SO THE DOCKET IN FRONT OF YOU TODAY IS ABOUT ADOPTING THE RESIDENTIAL EXEMPTION AND
CLASSIFICATION. IT HAS NO IMPACT ON THE AMOUNT OF MONEY WE COLLECT BUT IT'S IT WILL IMPACT SORT OF INDIVIDUAL PEOPLE AND HOW THEY HAVE THEIR TAX BILLS. RIGHT. SO WHAT'S THAT DOLLAR AMOUNT
FOR THOSE FOLKS I SEE SO IF WE DID NOT ADOPT ANYTHING TODAY WE WOULD HAVE A FLAT TAX RATE OF $15.40.
FOR COMPARISON THE RESIDENTIAL RATE FOR FY 25 WAS $11.58 AND THE COMMERCIAL RATE WAS $25.96. SO YOU KNOW, PICK YOUR PROPERTY
VALUE AND ADD $4 TO THAT AND THAT WOULD BE YOU KNOW, YOUR NEW YOUR NEW TAX BILL WOULD BE A SIGNIFICANT INCREASE FOR A RESIDENT AND IT WOULD BE A VERY SIGNIFICANT TAX DECREASE FOR A COMMERCIAL PROPERTY.
THANK YOU. THANK YOU FOR THAT AND WHILE I UNDERSTAND THAT THIS MAY NOT BE THE APPROPRIATE HEARING TO ASK
THE QUESTION, I STILL WOULD LIKE TO KNOW WHETHER OR NOT I KEEP GOING BACK TO PILOT AND I MEAN I'M ALWAYS LOOKING AT OTHER OPTIONS. I'M ALWAYS TRYING TO FIGURE OUT ANOTHER PATH FORWARD.
THERE HAS TO BE ANOTHER WAY FOR US TO NOT FIND OURSELVES IN THESE SITUATIONS WHERE WE'RE PITTING PEOPLE AGAINST EACH OTHER WHICH IS KIND OF WHAT THIS ALWAYS FEELS LIKE AND THEN
THE BURDEN FALLS ON US AS CITY COUNCILORS TO MAKE THESE REALLY DIFFICULT DECISIONS. BUT AT THE END OF THE DAY THAT'S WHAT WE GET ELECTED TO DO, RIGHT IS TO MAKE DECISIONS ON BEHALF OF OUR CONSTITUENTS.
AND SO WHAT ARE YOU ALL THINKING OF MOVING FORWARD CONSIDERING ALL OF THE BACK AND FORTH THAT WE'VE HAD THIS PAST YEAR REGARDING THE COMMERCIAL
VERSUS THE PROPERTY? LIKE WHAT IS YOUR PATH FORWARD LIKE HOW ARE WE GOING TO SET OURSELVES UP FOR SUCCESS AFTER THIS? YEAH, I THINK WE CONTINUE TO MAKE THE CASE THAT THE HOME
RULE PETITION THAT WE'VE PUT FORWARD AND THAT'S PENDING AT THE STATE IS THE RIGHT ANSWER. IT PROVIDES THE RIGHT LEVEL OF STABILITY FOR HOMEOWNERS AND FOR COMMERCIAL PROPERTIES.
WE'RE NOT TRYING TO PIT PEOPLE AGAINST ONE ANOTHER. WE'RE REALLY JUST TRYING TO CREATE STABILITY. IN A MOMENT OF TRANSITION. SO WE CONTINUE TO MAKE THE CASE AND BELIEVE THAT THAT IS THE RIGHT SOLUTION HERE IN ORDER TO
PROVIDE STABILITY AND NOT PROVIDE OR NOT CREATE AN ENORMOUS IMPACT ON CITY SERVICES. BUT I DO HAVE SOMETHING THAT I JUST WANT TO THROW OUT THERE FOR US FOR CONSIDERATION IS
THAT HARVARD AND THE U. AND NORTHEASTERN ALWAYS HAVE STUDENTS LIKE THAT STABLE. WE ALREADY KNOW THAT THEY'RE ALWAYS GOING TO GET THEIR $50,000 OR HOWEVER MUCH THEY
SHOULD CHARGE PER YEAR. SO I'M CURIOUS IF WE KNOW THAT IS INCOME THAT CONSISTENTLY COMES IN THAT WE KNOW THAT THEY'RE GOING TO HAVE THOSE DOLLARS.
WHY ARE WE INCLUDING THEM AS PART OF OUR BIG PICTURE? YEAH, WE'RE CERTAINLY THINKING PILOT RIGHT? WE WE WE THE ADMINISTRATION
STARTED THOSE CONVERSATIONS BEFORE THE LATEST FEDERAL ADMINISTRATION. I THINK THINGS GOT A LITTLE DICEY IN THE EARLY PART OF THIS YEAR BUT WE'RE CONTINUING TO HAVE REALLY PRODUCTIVE
CONVERSATIONS WITH OUR UNIVERSITY AND MEDICAL INSTITUTION PARTNERS TO SEE WHERE THERE'S OPPORTUNITY THERE
TO HAVE THEM BE MORE FOLDED IN BECAUSE LIKE WE'VE SAID, YOU KNOW, I THINK OUR SUCCESS AND THEIR SUCCESS IS SO LINKED AND SO WE TRY AND FIND WAYS WHERE WE CAN REASONABLY, YOU KNOW,
MODIFY THOSE AGREEMENTS IF POSSIBLE TO HELP WITH THE CITY. RIGHT? BECAUSE YOU THINK YOU EVEN I'M
GOING TO TALK ABOUT BRIGHAM AND WOMEN'S HOSPITAL RIGHT. THERE'S OTHER EMPLOYERS HERE WHO ARE DOING BUSINESS HERE. THEY MAY NOT BE COMMERCIAL IN THE SENSE OF TRADITIONAL WAY
THAT WE SEE THEM BUT THEY ARE PROVIDING A SERVICE. THEY ARE YOU KNOW, TECHNICALLY RENTING SPACE HERE IN THE CITY OF BOSTON AND DOING BUSINESS HERE.
SO I JUST WANT TO JUST AS YOU KNOW, TO CONTINUE TO PUSH US TO REALLY LOOK AT EVERYONE WHO IS OCCUPYING SPACE HERE AND HOW WE CAN TAP INTO THOSE DOLLARS AS
PART OF THE SOLUTION AS WELL. THANK YOU. THE CHAIR RECOGNIZES COUNCILOR WEBER. COUNCILOR, YOU HAVE THE FLOOR. THANK YOU. CHAIR JUST A COUPLE OF THINGS SO I FEEL LIKE I UNDERSTAND
WHAT'S GOING ON. SO WITH THE SPLIT TAX RATES, WHAT I READ WAS THAT YOU GENERALLY USE TO KEEP HOUSING AFFORDABLE FOR PEOPLE. SO I ASSUME YOU AGREE WITH
THAT. YES. OKAY. AND IN TERMS OF YOU KNOW, TRYING TO TAKE THE MAXIMUM
SPLIT, YOU KNOW, 175% FOR A COMMERCIAL AND MAYBE WITH THE HOME RULE SLIGHTLY MORE I GUESS SO I HAD OUR BUDGET KARISMA RAN SOME NUMBERS.
MY QUESTION WAS LIKE HOW MUCH WITHOUT THE HOME RULE PETITION PASSING WOULD SHIFT FROM COMMERCIAL, YOU KNOW, PROPERTY OWNERS TO RESIDENTIAL AND THE
NUMBER I GOT WAS ABOUT $53 MILLION. THAT'S LIKE MAYBE LAST YEAR AND THIS YEAR DO YOU HAVE DO YOU HAVE A NUMBER IS THAT IN THE
BALLPARK? SO I GUESS I JUST WANT TO MAKE SURE THAT I UNDERSTAND THE QUESTION THE DIFFERENCE IN ONE 75% I MAY HAVE TO GO TO YOU LATER BUT YEAH SORRY GO AHEAD.
THE DIFFERENCE BEING THE ONE 75% SPLIT TAX RATE FOR COMMERCIAL PROPERTIES AND ONE 81.5 AND 180 THE ESTIMATE I WAS
ABOUT $53 MILLION BETWEEN THOSE IN TERMS OF THE TOTAL PART OF THE TAX LEVY THAT WAS BEING BECAUSE IT'S REALLY GOT TWO SIDES OF THE SEESAW HERE AND I
I DON'T KNOW IF YOU KNOW I WAS TRYING TO FIGURE OUT WHAT THE THE AVERAGE WAS 780 FOR SINGLE FAMILIES AND TRYING TO FIGURE OUT HOW MUCH THAT WAS BUT DO YOU HAVE A DOLLAR FIGURE FOR
THE TOTAL AMOUNT YEAH SO I THINK THE IT'S A IT'S AN INTERESTING QUESTION IT'S NOT THE KIND OF THING THAT WE NORMALLY WE NORMALLY LOOK OUT
LIKE WE'RE NOT NORMALLY KIND OF WEIGHING LIKE WHAT PERCENTAGE OF THE LEVY WOULD BE PAID BY SOMEBODY IF WE HAD A DIFFERENT SHIP THAN THE SHIP WE'RE PROPOSING.
UM, WE TOOK A LOOK AT DO YOU REMEMBER IF IT WAS 180 OR 181 I THINK WE HAD A LIMIT. IT WAS LIKE 75 MILLION FOR SOMETHING.
YEAH I DON'T WELL IF YOU YOU CAN GET BACK TO ME ON THAT BUT SO WE CALCULATE IT AS IN THE 50 LOW FIFTIES BUT 50 PLUS MILLION DOLLARS AS WE'RE WE'RE JUST AND
IT'S EITHER SOMEBODY'S PAYING IT IT'S EITHER THE COMMERCIAL PROPERTIES OR THE RESIDENTIAL PROPERTY OWNERS AND AND THAT'S I THINK THAT'S WHAT WE'RE TALKING ABOUT IN TERMS OF THIS THESE SHIFTS.
YEAH. SO THERE IS SOMETHING THAT I WOULD LOOK TO TO CLARIFY ON THAT BECAUSE ONE OF THE REASON I CAN'T QUITE REMEMBER THE NUMBER IS THAT WHEN WE WERE KIND OF HAVING THIS
CONVERSATION INTERNALLY AND TALKING ABOUT LIKE WHAT THE VALUE OF THAT NUMBER WAS, WE REALIZED THAT IT MAKES IT SOUND LIKE IT'S SOLVABLE BY CUTTING OUR BUDGET BY THAT THAT
DIFFERENCE. SO LIKE IF YOU TAKE LAST YEAR'S COMMERCIAL PERCENTAGE THAT OF THE LEVY AND YOU APPLY IT TO THIS YEAR'S LEVY, HOW MUCH?
IS THAT SOMETHING YOU CAN SOLVE WITH THE BUDGET? UM AND THE REALITY IS WE WE CAN'T BECAUSE THAT CUT DOESN'T IF WE CUT OUR LEVY IT DOES NOT IT IS NOT SOMETHING WE CAN DIRECT TOWARDS RESIDENTIAL
PROPERTY OR TOWARDS COMMERCIAL PROPERTY SO IT CUTS THE BURDEN ON EVERYONE. SO IF WE WERE GOING TO MAKE A BUDGET CUT TO LIKE THE LOWEST
AMOUNT THAT IS PROPOSED IN THE LEGISLATION WHICH IS THE 180% SHIFT IF WE WERE GOING TO TRY AND ACHIEVE THAT RATE, BASICALLY WHAT THAT WOULD DO IS SHIFTING TO 180% WOULD TAKE OUR
POTENTIAL $12 AND 40 CENT RESIDENTIAL TAX RATE THIS YEAR AND IT WOULD MOVE IT TO $11.99 IF WE WERE GOING TO TRY AND ADJUST THIS YEAR'S TAX RATE
JUST BY CUTTING THE LEVY. INSTEAD WE WOULD HAVE TO CUT $116 MILLION FROM THE LEVY AND SO THAT WOULD MAKE THE RESIDENTIAL TAX RATE $11.99. IT WOULD ALSO THEN CUT THE
COMMERCIAL TAX RATE FROM $26.96 TO $26.07. SO IN ESSENCE THE COMMERCIAL PROPERTY OWNERS GET A BENEFIT AROUND 2 TO 1 OVER RESIDENTIAL
PROPERTY OWNERS FOR ANY LEVY CUT THAT WE MAKE BECAUSE WE'RE NOT ALLOWED TO LEGALLY DIRECT THE SAVINGS TOWARDS ONE CLASS OF PROPERTY. YEAH, THAT'S A GOOD GOOD POINT .
I JUST I HAD ONE FOLLOW UP QUESTION I APPRECIATED YOU JUST IN TERMS OF THE RATES WE'RE TALKING ABOUT IS IT AROUND 12 FOR RESIDENTIAL, 25 FOR COMMERCIAL?
CAN YOU JUST TALK ABOUT THE HISTORIC ALL LEFT LIKE WHERE THAT IS IN TERMS OF YOU KNOW WE AND YEAH AND YOU HAVE A CHART DID YOU FIND THAT OUT? I'M SORRY. YEAH.
NO, I I CAN TELL YOU WHATEVER I DIDN'T HAVE THOUGH BUT I'M MEAN WHAT'S WHAT'S THE ONE SENTENCE ON EACH ONE? YOU KNOW WHERE WE STAND NOW COMPARED TO HISTORICALLY ON THOSE RATES.
SURE. SO FOR 26 THE RESIDENTIAL RATE IS PROJECTED TO BE AROUND $12.40. SO THAT'S ASSUMING THAT CLASSIFICATION BUT IN ESSENCE
ASSUMING SORT OF PASSES AND SO WE HAVE CLASSIFICATION AT 175% AND WE HAVE A 35% RESIDENTIAL EXEMPTION. YOU PLAY OUT THAT MATH WITH THE VALUES THAT WE HAVE AND THE
RESIDENTIAL RATE SHOULD BE AROUND $12.40 FOR A HISTORICAL COMPARISON, THE LAST TIME THE RESIDENTIAL RATE WAS AT THAT
LEVEL WAS 2014 WHEN IT WAS $12.58 SO A LITTLE BIT ABOVE AND THEN 2015 IT WENT DOWN TO 1211 AND THEN IT DROPPED FOR QUITE SOME TIME.
THE COMMERCIAL TAX RATE RIGHT NOW IS PROJECTED TO GO OUT FOR FISCAL YEAR 26 AT $26.96 AND
FOR A COMPARISON AND HISTORICALLY THE LAST TIME WE WERE CLOSE TO THAT WAS FISCAL
YEAR 2016 THE COMMERCIAL RATE WAS $26.81 IN FISCAL YEAR 2015 IT WAS $29.52. SO THAT IS ALSO CLIMBING TO A
HIGHER LEVEL THAN IT'S BEEN IN THE PAST HANDFUL OF YEARS. AND SO THIS IS ANOTHER THING THAT IS JUST KIND OF A IT A LITTLE BIT DEMONSTRATES HOW CLASSIFICATION WORKS LIKE THIS IS NEVER ABOUT THE CITY GETTING
MORE REVENUE. IT'S REALLY ABOUT WHO IS PAYING AND HOW THAT BREAKS OUT IN TAX RATES. OKAY. THANK YOU. THANK YOU. SURE. THANK YOU, COUNSELOR WILL NOW
GO ONLINE FOR PUBLIC TESTIMONY . WHEN YOU HEAR YOUR NAME CALLED PLEASE STATE YOUR NAME MANY AFFILIATIONS. I MEAN YOU WILL HAVE 2 MINUTES
TO TESTIFY. DB WE'VE EXPLORED NOW FLOOR IS
NOW YOURS. CAN YOU HEAR US OKAY, YOU'RE ON MUTE. YOU CAN'T HEAR YOU. YEAH. ALL RIGHT.
THIRD TIME'S THE CHARM. THANK YOU, CHAIR AND THANK YOU. THE CITY COUNSELOR AND TO THE PANELISTS. LONGTIME CITY RESIDENT I LIVE
IN BRIGHTON AND I HAVE BEEN SORT OF MULLING OVER THIS PROBLEM OF THE CITY TAXATION FOR A LONG TIME AND I'M JUST
GOING TO WALK THROUGH AN ANALYSIS I'VE DONE THAT I THINK WILL BE VERY IMPORTANT. SO I KNOW THE ASSESSOR SAYS
THAT THE LAND THAT CONDOMINIUMS SIT ON IS INCLUDED IN THE VALUATION OF A CONDO AND SO TO LOOK AT THE ASSESSING DOCUMENTS
YOU CAN SEE LIKE FOR A SINGLE FAMILY HOME THE LAND HAS A VALUE THE BUILDING HAS A VALUE AND THEY'RE BOTH TAXABLE. WHEN WHEN WHEN THE TWO FAMILY,
FOR EXAMPLE, BECOMES A CONDO THE LAND SAYS EXEMPT AND AND IT IS A LOSS OF TAX REVENUE EVEN THOUGH THERE ARE TWO TAXABLE
UNITS BUT THE TAXABLE UNITS EACH RECEIVE THE FULL RESIDENTIAL EXEMPTION. SO FOR EXAMPLE I JUST LOOKED AT
A LARGE CONDOMINIUM COMPLEX NEAR WHERE I LIVE AND KNOW THE ON THE PAGE THE ASSESSOR'S PAGE THERE'S A RANGE FROM I DON'T
KNOW 350 275 EXCUSE ME TO $450,000 ASSESSMENTS AND IF I GO AHEAD AND CLICK ON ONE OF THEM AND I LOOK AT THE TAX
BILL THE TOTAL WHOLE VALUATION IS 352,000 THE RESIDENTIAL EXEMPTION FOR THAT UNIT IS 317,000 WHICH LEAVES THAT UNIT
WITH A TOTAL TAXABLE VALUE RATIO OF 35,000 AND THAT'S IT'S NOT UNIQUE. I DIDN'T LOOK FOR IT. I DIDN'T PULL IT OUT. I CAN LOOK AT ANY OF THE
HUNDREDS OF CONDOS AROUND HERE AND THAT'S DISTRESSING AND SO THEN THROUGH THE DATA PORTAL I JUST LOOKED UP YOU KNOW HOW MANY RESIDENTIAL CONDOS ARE IN
THE CITY? 183,445 36,000 OF WHICH ARE OWNER OCCUPIED IT WAS 36,000 OWNER OCCUPIED RESIDENTIAL
CONDOS ALL GET THE RESIDENTIAL EXEMPTION FROM THE EXAMPLE WHICH WAS $316,500 AND I DO THE
MATH IT'S A NUMBER THAT IS MIND BOGGLING SO 36,212 TIMES 360,530 IT'S 11,000,000,004.6
MILLION. THAT'S THE AMOUNT OF MONEY THAT GOES TO RESIDENTIAL EXEMPTIONS FOR OWNER OCCUPIED CONDOMINIUMS . SO IF YOU JUST THINK ABOUT WELL
WHAT IF THEY GOT HALF OF THE RESIDENTIAL EXEMPTIONS SO THAT WE DON'T HAVE PEOPLE WHOSE VALUATIONS ARE $37,000? YOU KNOW THAT ALONE IS 5.7 BILLION.
I THINK THERE ARE OTHER THINGS THAT I'VE LOOKED AT THAT I THINK WOULD LEAD TO WE WANT A HEALTHIER FISCAL PICTURE FOR THE CITY AND MORE EQUITABLE
TAXATION AND YEAH THANK YOU. THAT'S QUOTABLE. YEAH. THANK YOU FOR YOUR TESTIMONY. THANK YOU. THANK YOU. LOOKING AT MY COLLEAGUES TO SEE
IF THEY HAVE ANY ADDITIONAL QUESTIONS. NO. OKAY. SEEING PEOPLE SHAKE THEIR HEADS . ALL RIGHT. I HAVE ONE LAST QUESTION YEAR
OVER YEAR HAVE WE SEEN LIKE AN INCREASE IN OUR VETERANS SENIOR TAX EXEMPTIONS? THE NUMBER OF APPLICANTS ACTUALLY TENDS TO DROP YEAR OVER YEAR. OKAY.
THANK YOU. ALL RIGHT. ALL RIGHT. WELL, SEEING NO OTHER QUESTIONS, NO ONE ELSE SIGNED UP FOR PUBLIC TESTIMONY. I WANT TO THANK MY COLLEAGUES.
I WANT TO THANK YOU FOR BEING HERE. I WANT TO THANK EVERYONE WHO CAME TO TESTIFY. I WANT TO THANK CENTRAL STAFF AND AGAIN, I WANT TO REMIND EVERYONE THAT THE ACTION THAT
WE'RE TAKING TAKEN AND WILL BE VOTING ON ON WEDNESDAY AS WELL. WE GRANT THE FULL 35% RESIDENTIAL HOMEOWNER'S EXEMPTION. SO THAT'S SOMETHING I WILL BE
BRINGING FORWARD ON WEDNESDAY TO THE COUNCIL. YEAH, IN THE TAX YEAR YEAH ABSOLUTELY. AGAIN WITH THAT SAID THANK YOU TO EVERYONE AND THE THE HEARING
ON THIS DOCKET NUMBER 2045 IS ADJOURNED THANK YOU