City Council approves maximum tax shift for FY22

  The City Council, during its special meeting on December 20, voted unanimously to adopt the maximum tax shift of 1.75 percent for fiscal year 2022. The new tax rates will be $10.36 per $1,000 for residential properties and $24.04 per $1,000 for commercial properties. By comparison, the residential rate in fiscal year 2021 was $9.87 while the commercial rate was $23.20.

  “We’re in a very hot real estate market,” said city Assessor B.J. Devereux. “Over the past two years it’s gotten very heated.”

  Although Everett’s property taxes will be going up, William Hart, chairman of the Board of Assessors, said the single tax rate would have been $13.74. Therefore, the shift of 1.75 percent from residential to commercial was the best option for homeowners.

  In contrast, Malden’s residential rate is $12.29 and its commercial rate is $19.17, and the residential rate in Cambridge is $5.92 while its commercial rate is $11.23. In fiscal year 2021, the residential rate in Somerville was $10.19 and its commercial rate was $16.69. Also in fiscal year 2021, the residential rate in Chelsea was $13.62 and its commercial rate was $26.64.

  In addition, Devereux said there are currently 8,685 properties in Everett for a total assessed value of more than $5 billion. Within that figure, Devereux said, the average single-family home is valued at $581,986. He also said the average condominium is valued at $296,222, representing a sizable increase compared to the average value of $278,439 last year.

  The City Council also voted unanimously to continue the residential tax exemption of 25 percent for owner-occupied properties.

  On the commercial side, Devereux said convenience stores have increased in value from $918,000 last year to $965,000 this year. Fast food establishments went up slightly from $1.9 million to $2 million, and warehouse values have gone from $2.5 million last year to $2.7 million this year.

  In addition, Devereux reported $2.4 million in new growth. “That was right in line with where we’ve been during the past several years,” he said.

  Speaking about the city’s tax levy, Devereux said the current levy is at $100 million, an increase of $8.4 million over last year. He also said the new levy limit is set at $156.3 million.

$7.8M in free cash transfers

  In other news, the City Council voted unanimously to approve a free cash transfer of $700,000 from the Water/Sewer budget to offset the water/sewer rates for fiscal year 2022. In addition, $160,000 was moved from the ECTV free cash account to offset the fiscal year 2022 budget. Lastly, $7 million was transferred from the city’s free cash account to reduce the tax levy.