The Somerville City Council Finance Committee recently examined new growth valuation and tax levy growth as part of its regular business. — Photo by Adam Parise

By Adam Parise

Last Tuesday, December 3, Somerville residents and City Council Members gathered in the Committee Room of City Hall to discuss the Finance Committee’s business in the city of Somerville.

New growth valuation and tax levy growth for the FY20 was among the first things addressed. The new growth valuation for FY20 in Somerville is $15,055,446 for a single family, $113,250,341 for Condominium, $55,451,495 for two and three families, $133,865,763 for four plus unit families and $3,045,380 for mixed-use residential and other, which all adds up to a new growth valuation of $321,027,025 for total residential in Somerville.

The tax levy growth for all of this is $3,454,251. The new growth valuation for commercial is $199,741,519 with a tax levy growth of $3,454,251. The new growth valuation for industrial is $10,170,300 with a tax levy growth of $176,251. The new growth valuation for personal property is $74,068,270 with a tax levy growth of $1,283,603.

The total tax levy for FY20 is $167,905,653 with the FY19 levy at $155,031,240. The change/difference in tax levy between the two fiscal years was $12,874,413 which resulted in an 8.3% change. The tax levy limit for FY20 is $168,272,052. The tax levy share for FY20 in Somerville is 75.79% for residential, 3.64% for industrial, 3.18% for personal property and 17.39% for commercial.

Another item discussed was the major contributions to new growth valuation in Somerville in part due to activity in both Assembly Row and Cambridge Crossing. The major contributors to new growth valuation for Assembly Row were 375A Canal St. Alloy, with a new valuation of $18.8M and a FY20 tax estimate of $202,933, 391 Revolution Dr., with a new valuation of $14M and a FY20 tax estimate of $242,620, 449 Canal St. Montaje (Block 6 Apartments), with a new valuation of $18M and FY20 tax estimate of $193,680 and 375 Canal St. (Block 5 Marriott Hotel), with a new valuation of $19.8M and a FY20 tax estimate of $343,626.

The major contributions to new growth valuation for Cambridge Crossing were 250 Water St.-Inner Belt (Com-Land), with a new valuation of $73.4M and a FY20 tax estimate of $1,272,265, 0 Dawes St.-Inner Belt (Office/Lab), with a new valuation of $22.2M and a FY20 tax estimate of $384,530 and the Wayfair LLC-Inner Belt (Personal Property), with a new valuation of $22.8M and a FY20 tax estimate of $395,422.

Another key item discussed at the meeting was the impact of residential exemption and tax in Somerville. In FY19, Somerville had a residential tax rate of $10.76, an average residential value of $824,397, a residential exemption percentage of 35%, a residential exemption savings of $3,105 and an average residential tax bill of $5,766.

There will also be further development that will build commercial tax base and lower residential tax liability in Somerville. The new commercial space projected in the next 10 years includes 2,500,000 SF for Assembly Square, 1,400,000 SF for Union Square, 300,000 SF for Brickbottom, 1,200,000 for Inner Belt, 150,000 SF for Davis Square, 22,200 SF for Gilman Square, 1,000,000 SF for Boynton Yards and 580,000 SF for other parts of Somerville which are TBD.

To also ease the tax impact, the GLX will unlock development potential in stations areas like Union Square, which will spur new commercial development easing tax liability on the residential sector. Another way this will help is that the Zoning Overhaul will require new commercial development with commercial only zoning district that will help ease the tax impact on the residential sector.

Other key discussion topics included:

• The request to appropriate $12,683 from excess F20 Community Preservation Act Fund revenue to the Community Preservation Act Fund Budgeted Reserve.
• The request to transfer CPA funds totaling $468,808 from the CPA Undesignated Fund Balance to designated CPA reserves per the recommendation of the Community Preservation Committee.
• The request of a supplemental appropriation of $75,000 to the Kennedy School Pool Enterprise Fund to replace the pool filter.
• Requesting the appropriation of $2,300,000 from the Receipts Reserved for Appropriation Parking Meter Receipts Account in order to reduce the FY2020 Tax Levy.
• The request of an approval to pay a prior year invoice totaling $3,117.96 using available funds in the Building and Grounds Fire Alarm Account for the payment of the Settlement Agreement with Simplex Grinnell.
• The request of an appropriation and authorization to borrow $4,351,000 in a bond for Central Hill Campus Park and Open Space Improvements.
• A request of the appropriation of $25,000 from Unreserved Fund Balance (“Free Cash”) to the Dilboy Field Enterprise Fund in order to fund design services for Dilboy Field improvements.
• The request of an appropriation of $150,000 from Dilboy Field Enterprise Fund Retained Earnings for design services for field improvements.
• Requesting acceptance of a $68,000 grant with no new match required, from the Boston Mayor’s Office of Emergency Management to the Somerville Police Department for the purchase of a K-9 vehicle.