I’m a new associate member of the Finance Committee. Following are just some of the reasons why I will vote against Article 36 that would increase the Community Preservation Act surcharge rate to 3 percent. Discovering that approving the Town Hall renovation before increasing the surcharge would preclude use of those additional funds for the Town Hall, led me to do some research.
Fiscal year 2001 to fiscal year 2011, we raised $2.2 million, appropriated $2 million, and expended $900,000; leaving $1.3 million unexpended; most in Open Space and Affordable Housing reserves.
A 3 percent surcharge over the next 10 years, assuming state matches at fiscal year 2012’s 22 percent for round 1, and 5 percent for rounds 2 and 3, would raise another $6.8 million ($5.4 million tax levy plus $1.4 million state match).
Taxpayer consideration: a 1.9 percent increase over the next 10 years would increase CPA collections by $3.3 million or 61 percent above the $2.1 million already driven by the 1.1 percent rate. Proposition 2 1/2 increases over the same period will increase $4.9 million or 29 percent. Think about that. For a minimum of 5 years, Harvard would be mandated to raise CPA taxes at a rate higher than we’ll also raise via Proposition 2 1/2. Where is the Community Preservation Committee five-year plan for spending these additional, restricted-use funds? Where is the affordability analysis?
Restrictions extend beyond the Town Hall issue. Community Preservation Act rules disqualify funding Public Works, fire departments, maintenance, etc. Funding for Hildreth House is suspect, particularly for new space. Projects in their infancy cannot be fully vetted.
One way forward is for the Board of Selectmen to organize an ad hoc group to perform comprehensive due diligence for increasing the surcharge rate. Selectmen should also drive the process to develop a consensus road map of town priorities. Identifying priority projects that qualify for Community Preservation Act funding would allow us to consider an appropriate surcharge rate, if, after comparing more flexible, longer-term debt vs. restricted shorter-term CPA surcharges we determine there are quantifiable benefits for taxpayers and the town. For ten years we’ve collected funds only to let them sit in reserve accounts. Let’s not make that worse. We need a real plan before we consider amending the CPA surcharge rate.
Alan Frazer
Bolton Road
