Lynn board OKs slight tax hikes

LYNN – The City Council adopted new residential and commercial tax rates Tuesday that will bring a slight increase to property tax bills for owners of condominiums and single-family homes.The change translates to a larger tax bill for owners of two- and three-family dwellings, which increased an average 6-7 percent in value over the previous fiscal year, according to city Assessor Peter Caron.Those same multi-family apartment houses had lost 25 percent of their assessed value in 2008 and another 25 percent in 2009, so that by the time 2010 began they were at half their original value, the assessor explained.The value of most condominiums and single-family homes remained relatively flat during the past year, he said, noting that the average single family increased in value a mere $700, from $223,200 to $223,900.Under the new classifications, the residential rate will increase from $15.53 to $16.22 per $1,000 of assessed property value. The commercial rate rises from $31.05 to $33.41.The total assessed value of property in Lynn was $7 billion in 2008, but the amount decreased to $5.2 billion in 2009.The council vote was 10-0, with Ward 5 Councilor Brendan Crighton absent.Councilor-at-large Daniel Cahill asked Caron if his office had considered exempting or offering a lower tax rate to owner-occupied buildings. Caron explained that while such exemptions are offered by some Massachusetts communities, doing so in Lynn would only shift the residential tax burden to rental units.Cahill described Caron’s presentation a “report card” that suggests the city is caught in a vicious cycle in which expenses increase as revenues decrease. The only solution lay in curtailing municipal spending while attempting to attract economic development.The previous city tax levy was $93 million and will increase to $97 million, the amount required to pay expenses, Caron said.Councilor-at-large Paul Crowley inquired whether the city will receive additional property tax revenue from land along the waterfront made more valuable due to the recent removal of electrical transmission lines.According to Caron, the last assessment was completed on Jan. 1, 2010, and most of the transmission tower work was done after that date. As a result, any revenue from increased property values will been seen during the next assessment cycle.During the public hearing, attorney M. Ronald Mendes, a member of the Lynn Area Chamber of Commerce Board of Directors, read a statement from the business community.”A few weeks ago, we in the business community received some welcome news that commercial taxes would be relatively flat this years. Unfortunately, this flattening of commercial, industrial and personal property taxes is not the planned result of some new tax strategy. Rather, this is the unfortunate effect of a rapidly declining commercial real estate market in Lynn,” he said.Mendes added that the city’s tax policy is, simply put, “to maximize the amount of property tax dollars that can be assessed to taxpayers each year in accordance with Proposition 2+1/2.”He also noted that Mayor Judith Flanagan Kennedy and the City Council successfully reduced spending from the prior fiscal year under then mayor Edward Clancy Jr. by $6 million.The Lynn business community believes the city administration must begin the new year by committing to build a better budget for fiscal 2012 that is designed to reverse the present downward trend, he said.Mendes asked that the business community be allowed “to be part of a meaningful dialogue on how best the city can utilize its limited resources to meet the challenges our community must face.”