Suggestions to Cut Taxes

Suggestions for reducing residential taxes…

Eliminate the CPA…this 1.5% additional property tax surcharge was voted in by a slim margin of about 100 votes!  After five years, it can be revoked in the same manner to approve the CPA originally – a majority vote of the legislative body and by referendum.  It is time to do just that!  These monies for the main part have addressed deferred maintenance, bailed out Capital Projects, and funded frivolous projects which would never be included in the Town’s Capital Budget.  For example: the $1 million dollar walking path at Grove Street; the replacement of windows in the Town Hall when the contractor only a few years earlier did a poor job; the Police Station front steps; the Center renovation; and now the High School Project.   Let’s get this on the ballot and eliminate this 1.5% surcharge.

Create a business/commercial tax rate…for years the voters have been told that we do not have enough commercial property to make this viable and that if such a tax rate were put in place, what little commercial property Belmont has would leave…BUNK!  Watertown has had a commercial tax rate for years and their commercial property has continued to expand!  This year the residential rate in Watertown is $11.70 (down from $13.58 in 2023) and the commercial rate is $23.09. (up from $19.73 in 2023).

Belmont has significant commercial space!  Also, non-owner-occupied residential property should be classified and taxed as commercial.  Many Belmont residents today do not itemize their deductions and if they do, the property tax is limited to $10,000.  A commercial rate would not impact a Belmont landlord in a two or three family home where they occupy one of the units (owner occupied).  But non-resident owners of residential property would be taxed at the higher commercial rate.  They can “write-off” 100% of the higher taxes as a business expense, along with repairs, utilities they pay, insurance, depreciation, and so forth.

Don’t buy into the School Committee’s mantra of doom…when the new High School was being touted and justified it was based on enrollment projections which once again proved to be way off (as they have for decades).  The projection for total enrollment in the Belmont Public Schools was 4705 in 2020,and was projected to increase by 100 students each year 2021 through 2024, to almost 4900  (4865) students in 2023.  Student enrollment today is 4378…a difference of 486 students or 11%.  Indeed, the High School enrollment projection for 2023-2024 was 1528 versus today’s enrollment of 1364…a difference of 164 students or 12%.  How could these projections be so far off?  While a 12% reduction in students does not translate directly to 12% of the budget it does impact staffing, supplies, and many other costs.  Our four elementary schools have handled twenty-four grades (six per school) and now will be asked to handle K-3 or four grades per school…that along with 12% fewer students may justify a reduction of one school and should be examined unemotionally.  Without a proper analysis…no threat of school closing should be made or threatened!

AGGRESSIVELY pursue PILOT payments…(Payment in Lieu of Taxes)   Have a team approach the non-profit property owners armed with the information outlined in the SCIG (Structural Change Impact Group, a Belmont Committee) analysis, and after updating the fair market value assessments of these properties.  These conversations will not be one-time asks; they will be establishing relationships and on-going negotiations. Look to Watertown, Cambridge and Boston for examples of how to successfully implement PILOT. 

Contract Hires wherever possible vs FTEs … The national workforce is increasingly comprised of 1099 contract employees.  It is desired by employer and contract workers, a rapidly increasing part of the work force.  An enormous amount of long-term debt is avoided every time a contract employee is used instead of a full-time hire. No obligations for long-term health, retirement, associated administrative and support costs (unemployment, vacation pay, mandated leaves, etc.). Contract employees bring a wealth of experience and can be negotiated year to year – you don’t have to rehire if they don’t work out without termination issues.  Many positions we have recently hired as FTE’s lend themselves well to contract hires - tree warden, counselor positions, janitorial staff, DPW.

Belmont Retirement Board changes – Belmont’s retirement funds should be in the state retirement fund plan, PRIM (Pension Reserves Investment Management).  PRIM consistently outperforms the board’s privately invested plan, sometimes significantly.  Annually, Belmont must write a sizable check to pay down Belmont's unfunded retirement liability.  Since Belmont's privately invested fund is underperforming, each year that annual payment is significantly larger than it would be were funds managed by PRIM.

Increase the employee contribution percentage for health insurance immediately for new hires in school, and eventually for all school and town employees... Belmont must work with the various unions and others in advance to bring in line with plans in the rest of the world, and to establish parity of employer contribution between school and town.  (Currently Belmont funds 80% of insurance premiums for school employees, and 75% for town employees).  Also immediately explore whether savings can be gained by switching from our current self-insurance to Massachusetts GIC (Group Insurance Commission) plan.  

Photo credit - Jon Tyson