Holyoke City Assessor Anthony Dulude held the annual Tax Classification Hearing Nov. 20, the first step in setting the city's property tax rate.
HOLYOKE -- With an increase in property values allowing the city to raise an additional $1.2 million in revenue, Assessor Anthony Dulude expects residential and commercial property taxes to rise slightly in fiscal 2019.
Dulude held the annual tax classification hearing at City Hall on Tuesday. The City Council sets and approves the property tax rate for both classes of property, which should occur in the coming weeks.
The split tax rate continues to favor homeowners, who pay $19.14 per $1,000 in valuation, while commercial property owners pay $39.70 per $1,000 in valuation.
The council begins with a single rate of $25, then chips away at it, shifting the burden to the commercial side.
Before a vote on the tax rate can occur, the state Department of Revenue must certify the city's free cash reserve.
Dulude based the current property valuations on assessments conducted in 2017. The city's overall properties are valued at over $2.1 billion, with $497 million worth of additional parcels considered nonprofit or tax-exempt.
The assessor's office formulates the amount of revenue the city can raise in a fiscal year. The revenues come from property taxes, permits and other fees.
Under Proposition 21/2, municipalities must obey a levy ceiling, or the maximum they are allowed to collect.
For fiscal 2019, the tax levy limit is $53,918,766, or the full amount the city expects to collect. The new limit represents $52.4 million from fiscal 2018, plus 2.5 percent and $407,348 in new growth.
Dulude noted an increase in single-family home values over the last five years. In 2018, the average single-family home was valued at $182,800 ($3,497 average tax bill). He forecasts the average will climb to $190,637.
Two-family homes saw a sharp rise in valuation over the same period. "The increase has been significantly on the residential side," Dulude said.
Dulude said the new growth represents a net value, which factors in buildings torn down. He said the new Marcotte Ford facility on Main Street and The Cubit Building on Race Street would add to next year's growth figures.
Commercial and industrial classes, excluding the Holyoke Mall, saw modest increases since fiscal 2015.
Dulude emphasized that the council can set the tax rate once free cash is certified. The council must also balance the budget through a series of cash transfers.
Resident Carl Eger, the sole audience member at Tuesday's hearing, said new growth "is going to be critical to the City of Holyoke's future." He said the city is limited by its landmass, with vacant properties in need of zone changes or variances.
He added he was "proud" of how the City Council approved the zone change for Lynch School from residential to business-highway. A retail and banking development has been proposed for the site. "With the new growth we will have financial viability," Eger said.
Councilors Joseph M. McGiverin, Peter Tallman, Michael Sullivan, David K. Bartley, Linda Vacon and Jossie Valentin attend the hearing.