fy13 city of lawrence tax levy presentation

7/30/2019 FY13 CITY OF LAWRENCE TAX LEVY PRESENTATION

1/23

CITY COUNCIL

TAX CLASSIFICATIONPRESENTATION

November 20, 2012

Presented ByThe Board Of Assessors


2/23

Levy is the amount the City raises each year through Property Taxes .

The Levy Limit is the Maximum amount the City can levy. FY 2013 TaxLevy Limit increased by $2,476,410 over FY 2012.

Excess Levy capacity is the difference between the Levy Limit and theActual Levy.

LEVY, LEVY LIMIT & EXCESS LEVY CAPACITY

2

Levy Summary

FY 2012 Levy $52,314,601FY12 Amended Growth $0Prop 2 1/2 Increase $1,307,865New Growth $1,168,545Overrides $0FY 2013 Maximum Levy $54,791,011

FY 2013 Proposed Levy $54,791,011

Excess Capacity $0November 20, 2012 BOARD OF ASSESSORS CLASSIFICATION HEARING


3/23

Values are based on Sales in Calendar Year 2011

The residential values decreased by 1.19% andcommercial/industrial decreased by 0.38%.

The City of Lawrence Total FY2013 Property value is $2.664Billion. This is a 1.04% decrease from FY 2012.

The average single family home assessed value in FY 2013 is$167,771. This is a $9,065 decrease from FY 2012 averageassessed value of $176,836.

FY 2013 VALUES

3November 20, 2012 BOARD OF ASSESSORS CLASSIFICATION HEARING


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New Growth is a calculation of the net increase in municipal property valuesbecause of new construction, improvements to properties, subdivisions, condoconversions, the return of exempt property to the tax rolls or new personalproperty accounts as well as new personal property equipment at existing

locations. New Growth is added to the Citys Levy Limit, thereby increasing the Citys

taxing capacity.

Assessors must submit documentation of New Growth to the Bureau of LocalAssessment annually and receive approval prior to setting the tax rate.

The New Growth assessed value for real and personal property is$46,026,755 which will increase the FY13 tax levy by $1,168,545.

WHAT IS NEW GROWTH?



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PROPERTY VALUE CHANGE 2012 VS. 2013

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Property Value Breakdown

Total Real Property Value FY2012 $2,692,587,300.00Total Real Property Value FY2013 $2,664,628,200.00

Real Property Value Change ($27,959,100.00) -1.04%

Residential Property Value FY2012 $2,177,269,713.00Residential Property Value FY2013 $2,151,293,326.00

Residential Value Change ($25,976,387.00) -1.19%Commercial Property Value FY2012 $313,166,987.00Commercial Property Value FY2013 $313,582,474.00

Commercial Value Change $415,487.00 0.13%Industrial Property Value FY2012 $202,150,600.00Industrial Property Value FY2013 $199,752,400.00

Industrial Value Change ($2,398,200.00) -1.19%Personal Property Value FY2012 $149,378,760.00Personal Property Value FY2013 $154,725,420.00

Personal Property Value Change $5,346,660.00 3.58%Total Value FY 2012 $2,841,966,060.00Total Value FY 2013 $2,819,353,620.00

($22,612,440.00) -0.80%November 20, 2012 BOARD OF ASSESSORS CLASSIFICATION HEARING


6/23

LARGEST TAXPAYERS


$38,164,500

$35,929,140

$29,007,400

$25,460,810

$17,716,600

$13,770,630

$13,341,600

$13,291,870

$9,834,100

$8,298,080

$7,641,500 $7,227,200

FY 2013 Total Value

Verizon New England Inc

Mass Electric

Bay State Gas

Bouwfonds Jefferson Lp

Eqr Lincoln Andover LLC

Hampton on Beacon

New Balance Athletic Shoe

Chi Energy Inc

Lawrence /Methuen Props

Comcast of MA

Seventeenth Law LLC

HJ Brooks LLC


7/23

Tax Levy

FY 2013 Maximum Allowable Levy = $54,791,011

FY 2013 Estimated Levy = $ 54,791,011

FY 2013 Estimated Excess Capacity= $0 Total Value

FY 2013 Total Value = $2,819,353,620

FY 2013 Residential Value = $2,151,293,326 or 76.3045% of TotalAssessed Value.

FY 2013 C.I.P. Value = $668,060,294 or 23.6955% of Total AssessedValue.

Single Tax Rate $19.43 / $1,000

TAX LEVY- SINGLE TAX RATE



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Shifting allows the City to reduce the Residential Classes(R.O.) tax burden while increasing the C.I.P. tax share.

The combination of the two tax classification amountsmust equal the total property tax.

The chosen Factor for FY2012 was 1.73,which was less thanthe maximum Tax Shifting allowed by law (1.75 max.).

Continuing with a Factor of 1.73, the residential tax rate forFY 2013 will be $15.03, a $0.74 increase over FY 2012. Thecorrespondent C.I.P. tax rate for FY 2013 will be $33.62, a$1.81 increase over FY 2012.

THE FACTOR - SHIFTING DEFINITION



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Total Levy FY 2013

$54,791,011

Shift Determined Based on (1.73) C.I.P. Tax Share =40.9932%

New C.I.P. Levy amount $22,460,609

Residential Tax Share = 59.0068%

Residential Levy Amount = $32,330,402

Residential Tax Rate

$15.03 / $1,000

C.I.P Tax Rate

$33.62 / $1,000

THE FACTOR- SUMMARY



10/23

FY 2013 TAX LEVY BREAKDOWN

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Factor of 1.73 Valuation Valuation % Tax Share Tax Share %

Residential $2,151,293,326 76.3045% $32,330,402 59.0068%

Commercial $313,582,474 11.1225% $10,542,841 19.2419%

Industrial $199,752,400 7.0850% $6,715,802 12.2571%

Personal Property $154,725,420 5.4880% $5,201,966 9.4942%

$2,819,353,620 100.0000% $54,791,011 100.0000%

November 20, 2012 BOARD OF ASSESSORS CLASSIFICATION HEARING


11/23

FY 2013 TAX LEVY BREAKDOWN (What If)

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Share Percentages Levy AmountsEst Tax

Rate

CIP Shift Res Com Ind PP Res Com Ind PP Total Res CIP

1.70 59.7176 18.9082 12.0446 9.3296 32,719,892 10,360,017 6,599,343 5,111,759 54,791,011 15.21 33.04

1.71 59.4807 19.0195 12.1154 9.3844 32,590,062 10,420,958 6,638,162 5,141,828 54,791,011 15.15 33.23

1.72 59.2437 19.1307 12.1863 9.4393 32,460,232 10,481,900 6,676,982 5,171,897 54,791,011 15.09 33.43

1.73 59.0068 19.2419 12.2571 9.4942 32,330,402 10,542,841 6,715,802 5,201,966 54,791,011 15.03 33.62

1.74 58.7698 19.3531 12.328 9.5491 32,200,572 10,603,782 6,754,621 5,232,035 54,791,011 14.97 33.81

1.75 58.5329 19.4644 12.3988 9.604 32,070,742 10,664,723 6,793,441 5,262,105 54,791,011 14.91 34.01



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Various Tax Rate Factors are shown below

Other choices are possible. As a reminder, a factor below1.75 increases the residential tax bill.

CHOICE OF TAX RATES


ResidentialFactor

RO Rate RO Change $From 2012

C.I.P Rate C.I.P. Change $From 2012

1.75 $14.91 $0.62 $34.01 $2.20

1.74 $14.97 $0.68 $33.81 $2.00

1.73 $15.03 $0.74 $33.62 $1.81

1.72 $15.09 $0.80 $33.43 $1.62

1.71 $15.15 $0.86 $33.23 $1.42

1.70 $15.21 $0.92 $33.04 $1.23

* All $ are per $1,000 of Assessed Value


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Below is a comparison of a factor of 1.73 for FY2013 andFY2012

FACTOR COMPARISON

13

FY 2012 FY 2013

Class AvgValue

TaxRate

Avg Tax AvgValue

TaxRate

Avg Tax Delta$

Delta %

Residential $185,138 $14.29 $2,646 $182,918 $15.03 $2,749 $104 3.92%Commercial $321,371 $31.81 $10,223 $321,139 $33.62 $10,797 $574 5.61%Industrial $965,790 $31.81 $30,722 $937,804 $33.62 $31,529 $807 2.63%



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AVERAGE TAX BILL IMPACT ANALYSIS

FISCAL YEAR 2013 VS. 2012 (1.75 Factor)

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FY 2012 TaxRate

R/O $14.29 FY 2013 TaxRate

R/O $14.91

CIP $31.81 1.75 CIP $34.01

FY 2012 Average Value FY 2013 AverageValue

SingleResidential

TaxAmount

SingleResidential

TaxAmount

Tax Amt.Change

176,836 $14.29 2,527 167,771 $14.91 $2,501 ($25.53)

Condo Units Condo Units

85,553 $14.29 1,223 83,683 $14.91 $1,248 $24.71

Two Family Two Family

188,391 $14.29 2,692 189,725 $14.91 $2,829 $136.80

Three Family Three Family

202,696 $14.29 2,897 201,908 $14.91 $3,010 $113.45

Commercial Commercial321,120 $31.81 10,215 321,939 $34.01 $10,949 $734.15

Industrial Industrial

962,622 $31.81 30,621 937,804 $34.01 $31,895 $1,273.71

Note: Values and taxes are averages perclassification.



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FY 2012 TaxRate

R/O $14.29 FY 2013 TaxRate

R/O $14.97

CIP $31.81 1.70 CIP $33.81


SingleResidential

TaxAmount

SingleResidential

TaxAmount

Tax Amt.Change

176,836 $14.29 2,527 167,771 $14.97 $2,512 ($15.47)

Condo Units Condo Units85,553 $14.29 1,223 83,683 $14.97 $1,253 $29.73


188,391 $14.29 2,692 189,725 $14.97 $2,840 $148.18


202,696 $14.29 2,897 201,908 $14.97 $3,023 $125.56



962,622 $31.81 30,621 937,804 $33.81 $31,707 $1,086.15



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16

FY 2012 TaxRate R/O $14.29 FY 2013 TaxRate R/O $15.03

CIP $31.81 1.73 CIP $33.62


SingleResidential

TaxAmount

SingleResidential

TaxAmount

Tax Amt.Change

176,836 $14.29 2,527 167,771 $15.03 $2,522 ($5.40)



188,391 $14.29 2,692 189,725 $15.03 $2,852 $159.57


202,696 $14.29 2,897 201,908 $15.03 $3,035 $137.68

Commercial Commercial

321,120 $31.81 10,215 321,939 $33.62 $10,824 $608.59


962,622 $31.81 30,621 937,804 $33.62 $31,529 $907.97




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CIP $31.81 1.70 CIP $33.43


SingleResidential

TaxAmount

SingleResidential

TaxAmount

Tax Amt.Change

176,836 $14.29 2,527 167,771 $15.09 $2,532 $4.66



188,391 $14.29 2,692 189,725 $15.09 $2,863 $170.95


202,696 $14.29 2,897 201,908 $15.09 $3,047 $149.79



962,622 $31.81 30,621 937,804 $33.43 $31,351 $729.79



18/23





CIP $31.81 1.70 CIP $33.23


SingleResidential

TaxAmount

SingleResidential

TaxAmount

Tax Amt.Change

176,836 $14.29 2,527 167,771 $15.15 $2,542 $14.73



188,391 $14.29 2,692 189,725 $15.15 $2,874 $182.33


202,696 $14.29 2,897 201,908 $15.15 $3,059 $161.91



962,622 $31.81 30,621 937,804 $33.23 $31,163 $542.23



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CIP $31.81 1.70 CIP $33.04


SingleResidential

TaxAmount

SingleResidential

TaxAmount

Tax Amt.Change

176,836 $14.29 2,527 167,771 $15.21 $2,552 $24.80



188,391 $14.29 2,692 189,725 $15.21 $2,886 $193.72


202,696 $14.29 2,897 201,908 $15.21 $3,071 $174.02

Commercial Commercial

321,120 $31.81 10,215 321,939 $33.04 $10,637 $421.86Industrial Industrial

962,622 $31.81 30,621 937,804 $33.04 $30,985 $364.04




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FISCAL YEAR 2013 VS. 2012 (CONT.)

20

Factor Res.Rate

Avg. SFHBill

Dif.From2012

Change%

1.75 14.91 $2,501 ($26) -1.01%

1.74 14.97 $2,512 ($15) -0.61%

1.73 15.03 $2,522 ($5) -0.21%

1.72 15.09 $2,532 $5 0.18%

1.71 15.15 $2,542 $15 0.58%

1.70 15.21 $2,552 $25 0.98%

1.68 15.33 $2,572 $45 1.78%

1.65 15.51 $2,602 $75 2.97%

Factor Res.Rate

Avg.Condo Bill

Dif.From2012

Change%

1.75 14.97 $1,253 $30 2.43%

1.74 15.03 $1,258 $35 2.84%

1.73 15.09 $1,263 $40 3.25%

1.72 15.15 $1,268 $45 3.66%1.71 15.21 $1,273 $50 4.07%

1.70 15.33 $1,283 $60 4.89%

1.68 15.51 $1,298 $75 6.13%

1.65 14.76 $1,235 $12 0.99%



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PROPERTY TAX ANALYSIS CLASSIFICATION

AVERAGE VALUE FISCAL YEAR 2013 VS. 2012

21

* 1.73 Factor

$2,527

$1,223

$2,692$2,897

$2,522

$1,258

$2,852$3,035

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Single Residential Condo Units Two Family three Family

FY2012 FY2013



22/23

DISCUSSION/VOTE



23/23

CONCLUSION OF CLASSIFICATION

PRESENTATION


fy13 city of lawrence tax levy presentation

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