Board calls to discuss eliminating CPA tax for School
By Shawn on Feb 23, 2011 in Community
“If you give a little, you get a little back” — Joe DiRocco
At the Board of Selectman’s meeting, after a presentation by the School Superintendent on the High School Renovation project, Selectman Joe DiRocco called for an end to the Community Preservation Tax as a way to bargain with the taxpayers for them to support the new project.
The CPA has done good for the town, he said, but there are few if any land owners looking to join the program. The fund has over $6 million banked so far.
The Town Manager explained that the Community Preservation Act debts outstanding are only about $2 million dollars (the Canney farm park project and Harmony Hall renovation). We could continue the tax at a reduced rate, or pay those debts from the funds on hand.
Fact is, we were told last week on Saturday Morning Live that the protection of the Saja farm of about 40 acres was at a cost to the CPA of about $400,000. The $6 million on hand should be enough to cover any of the few other small projects that could come forward.
Farmers and landowners throughout town have had well over five years to decide whether to take the opportunity. A number have chosen not to. There is no need for us to keep collecting a tax for the possibility that someone will change their mind.
Selectman Cathy Richardson noted that she had chosen not to protect her farm with this program, but noted that her children may in the future. Well, if the opportunity was there, and the family chose not to take adavantage of it at the time, they lose out. Cash for Clunkers is over.
The topic is being placed on the agenda of a future Board meeting, so that it can be discussed and placed on the town meeting warrant.
Selectman Zimini asked that the meeting be open to input from the community, indicating that some farmers may want to come forward and speak on it.
I would predict what we would get would be people who want to come and speak on using the tax for other new and broad uses. Many are afraid that the taxpayer pot of gold may suddenly dissapear.
Bob Cox made the point… we’ve built a new Library that we’ve just started paying for, we’ve build a new Police Station, we’ve built new fire stations. The taxes keep going up. The taxpayers are finding themselves at wits end.
Logically, the school project is a smart move, everyone agreed. The question is whether the taxpayers will choose to make that decision. Giving something back, DiRocco said, may be enough to get them to make this vote.
Update: The Sun editorial this morning tells us that the CPA fund actually currently holds $7.7 Million.
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Jeanne Balkas | Feb 23, 2011 | Reply
I certainly respect the call of some to opt out of the Community Preservation Act Program (CPA) and subsequently eliminate the CPA’s 2 percent surcharge in order to help our taxpayers cope and manage during these fiscally challenging times.
Surely something that can be done to ease the burden on taxpayers is always a good thing.
Since the CPA’s inception, the town has funded numerous valuable projects with CPA money. However, as we voluntarily chose to increase our taxes via a CPA surcharge, we can also choose to decrease them. That is what I propose as an alternative and compromise, to decrease the surcharge from the current 2 percent to 1 percent.
CPA is an investment in the future and the money the town would lose from the state matching funds, I feel, would not be worth a repeal of the act. CPA helps fund projects that give the town its character and it is an investment in the future. It’s always important to think about the future when making a decision. CPA makes good fiscal sense and it is a worthy investment to continue. Also, the matching funds is the key. It’s free money.
The intent of the CPA program was, and is, to leave a legacy of preserving the heart of Dracut and enhance the way of life we value as a community for future generations.
Furthermore, there is a deficit of affordable senior housing in this community and a major need for seniors in Dracut. Eliminating the CPA program would compound this shortfall.
There already is a provision in place for elderly and low-income exemptions to the CPA surcharge to insure that those least able to afford the CPA surcharge will not be burdened by it. Also, the CPA surcharge is treated like any other property tax and is tax deductable to the extent that any property taxes are on the Federal Tax return.
Shawn | Feb 23, 2011 | Reply
The intent of the CPA program, to Dracut, was to protect open space.
Everyone who wanted to do so has had the opportunity, now its just racking up money in the bank (many people don’t understand why the town on one hand asks for higher bus fees, and on the other hand has 6 million sitting in the bank unused).
There are efforts regularly down in Boston to expand the uses of this fund (including things like sidewalks, operational and maintenance costs). Ourselves, we just used it to fund a research study and repair vandalism at a cemetery… it will eventually just become a slush fund controlled by a small group in town.
The match has already been reduced, I believe.
I prefer to let it go. It has served its purpose. Now its time to focus on the school project.
Jeanne Balkas | Feb 23, 2011 | Reply
The intent and purposes of the Community Preservation Act was to provide a funding source to address three core community concerns:
1)Acquisition and preservation of open space
2)Creation and support of affordable housing
3)Acquisition and preservation of historic buildings and landscapes
This is clear both in the CPA statute and The Department of Revenue’s (DOR’s) guidance.
School Bus Fees have NOTHING to do with the Community Preservation Act
The Taxpayers of Dracut CONTROL and DECIDE at a Town Meeting and Town Election the future uses, merits and virtues of this program.
Joe Forster (Joe80s) | Feb 23, 2011 | Reply
Dracut is one of the few towns in the area that is not in dire financial turmoil. With fed and state dollars drying up we are fortunate to have had conservative management over the years to keep budgets in check.
The high school committee has recommended building a new school and I believe they are correct, but at what cost? Most residents also realize the school is outdated but in these difficult economic times eliminating the CPA is reasonable considering the surplus of funds it currently has. The new school is a necessity. The CPA is not.
Difficult times… Difficult decisions.
Shawn | Feb 23, 2011 | Reply
Jeanne… the intent of the law is there, but how it was sold to the people is important.
This was explained as an open space program. The law requires 10% to be put aside for affordable housing and 10% for preservation of historic buildings.
Over 10 years, at a collection rate of about $600,000 a year, we have already spent over $650,000 on the preservation of Harmony Hall, the repair of vandalism at a historic cemetery and a significant amount on a study of historic buildings. Well over the 10% rate for that.
As to affordable housing.. the 10% (and more) for that could come out of the $6 million sitting in the account. Whether that goes to a Dracut Housing project, or a 40b affordable housing opportunity.. there is plenty there.
As CLT often says… how much is enough. $6 million is sitting there. It would be over 7 by the time the change that Joe DiRocco recommended went into place. All while 17% of our people are living in poverty, nearly 10% are unemployed, and the rest are afraid of losing their jobs.
When is enough enough?
george boag | Feb 23, 2011 | Reply
If the CPA is repealed could the town decide to reinstate it after the school, police station and library are paid off?
Shawn | Feb 23, 2011 | Reply
I don’t remember anything in the law saying we couldn’t reinstate.. thats a good question. We’ll have to research it.