FY 22 Property Owner Bill Impacts

City of Somerville FY22 Budget

FY22 Estimated Impact of the Debt Exclusion, Property Tax, CPA, and Proposed Water/Sewer Rates

On this page, you will be able to see how the debt exclusion, property tax, Community Preservation Act (CPA) fee, and the proposed water/sewer rates will impact bills in FY22. But first, a few definitions:

Levy Limit: Total amount of dollars assessed in property taxes by the City each fiscal year.

Max Levy: Levy limit plus 2.5%, plus growth revenue

Debt Exclusion: A temporary increase in property taxes to raise funds to pay for the debt service for a capital project. In FY22, Somerville property owners will see debt exclusion for the Somerville High School project debt service on their tax bills.

Property Tax: Property tax is an assessment on the ownership of real and personal property. An owner’s property tax is based on the assessment, which is the full and fair cash value of the property.

Assessed Value: The value placed upon a particular property by the local Board of Assessors for the purpose of apportioning the City’s tax levy among individual property owners equitably and in accordance with the legal requirement that property is assessed at “full and fair cash value,” certified periodically by the Commonwealth’s Commissioner of Revenue (no less frequently than once every three years).

Community Preservation Act (CPA) Fund Surcharge: The 1.5% CPA surcharge on net property taxes, creates a dedicated funding source for the City to invest in historic preservation, affordable housing, and open space and recreation projects.

Water/Sewer Rates: The City's Water & Sewer Enterprise fund charges usage fees to all residential and commercial properties in order to fund the operations and capital expenses required to maintain the system. These charges are broken down into a monthly base charge and tiered rates based on actual usage. Rates are adjusted annually to fund the program.

Summary of Levy, Debt Exclusion, Property Tax Rate, and Estimated Average Assessed Values

Image of table showing levy, tax rate, and assessed value changes from FY21 to FY22

Summary of Estimated Bill Impacts with Residential Exemption

Estimates for increases to property tax, high school debt exclusion, and CPA surcharge are based on changes to the average assessed value of each property type. Estimates to average water and sewer bill are based on average consumption by property type. Actual bill impacts may differ based on assessed value and water consumption. There is not a residential exemption for Water & Sewer utility bills, therefore these estimates are the same for properties with and without the residential property tax exemption.

Image with chart showing estimated property bill impacts