Easthampton Mayor Nicole LaChapelle is expected to propose a tax rate stabilization fund Wednesday night aimed at reducing the city’s tax rate following criticism earlier this month over officials’ failure to communicate a 14.9% property tax hike to residents.
The mayor will introduce two other “financial tools" to the Easthampton City Council at a 6 p.m. meeting, including a cannabis impact fee stabilization fund and a municipal sustainability donation account, LaChapelle said in a statement.
“We face challenges ahead and must ensure that everything we do fulfills our responsibility to be strong fiscal stewards for your taxpayer dollars,” the mayor said in her statement. “We frequently hear the community’s valid concerns about affordability in Easthampton, particularly the impact on elders, young families, the disabled, veterans and renters whose landlords pass the increase onto them.”
Revenue from Easthampton’s property tax hike will go to the construction of a $104 million school. A $742 per year hike will be implemented for the average single-family home.
Taxes also rose due to an increase following an assessment of properties in the city. Overall property values increased 5.54% since fiscal year 2019, Easthampton City Council President Peg Conniff told MassLive earlier this month.
LaChapelle and the city council came under fire for allegedly not doing enough to warn homeowners and businesses about the increase, despite the hike coming mainly as a result of a Proposition 2½ override that residents voted in favor of in 2018.
The mayor’s three measures, if passed, will help ensure that revenue is used to protect vulnerable residents and encourage others to give to the city, she said. The proposals were the result of a long “legal exploration" in which officials searched for ways to lessen the burden on taxpayers and still meet the city’s needs.
“The rules outlined by the Department of Revenue do not allow tax relief in the form of tax rate exemption for a singular group, based on overall rising costs. So, we had to get creative,” the mayor said.
The tax rate stabilization fund would help the city identify ways to decrease the tax burden on residents, while the municipal sustainability donation account aims to reduce climate-related utility expenses for the city. The donation account may be used to fund future projects to reduce the community’s energy costs as well, according to the mayor.
The cannabis impact fee stabilization fund would ensure that impact fees from the local cannabis industry go to bolstering city resources in education, infrastructure, public safety and planning, LaChapelle said.
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- Easthampton taps Springfield construction firm to build $104M elementary school
- Easthampton voters OK new school construction 2,829 to 2,101