11

22

OVERLAYOVERLAY::

An account established annually to fund anticipated property tax abatements,

exemptions and uncollected taxes in that year.

The overlay reserve is not established by the normal appropriation process, but rather is raised on the tax rate recapitulation sheet.

33

44

D.O.R.’s PUBLICATION; CITY AND TOWN, JUNE 2004,

STATES:

While the Board of Selectman can request a review of overlay accounts to determine if there

is any surplus, any decision in this matter, however, rests solely with the Board of

Assessors.

55

PRIOR YEARS OVERLAYPRIOR YEARS OVERLAY

• $85,000 - Utility cases under appeal.• $220,000 - Unpaid real and personal property

taxes. • $15,000 - Interim Certification, both residential

and commercial. Greater than 10% change within a class.

• $20,000 - ATB cases under appeal.• $20,000 - Release to Overlay Surplus

TOTAL: $360,000

66

OVERLAY ACCOUNT RELEASE OVERLAY ACCOUNT RELEASE TO OVERLAY SURPLUSTO OVERLAY SURPLUS

The Board of Assessors plan to release $20,000 to overlay surplus which will add

to free cash.

As unpaid taxes are collected ~ $220,000, there will be the potential to release more

dollars to free cash.

77

FY 2009 OVERLAYFY 2009 OVERLAY

88

SOUTH SHORE TOWNS FY2009 SOUTH SHORE TOWNS FY2009 TAX LEVY ~ $29 TO 16 MILLIONTAX LEVY ~ $29 TO 16 MILLION

• BRIDGEWATER $29,673,024• PEMBROKE $29,385,084• NORWELL $29,331, 848 • HANOVER $29,155,808 • ABINGTON $24,478,278• E. BRIDGEWATER $19,182,984• WHITMAN $16,558,363

99

FY2009 OVERLAY RESERVEFY2009 OVERLAY RESERVE

• BRIDGEWATER $374,868• PEMBROKE $340,245• NORWELL $520,557 • HANOVER $218,023• ABINGTON $358,525• E. BRIDGEWATER $533,641• WHITMAN $152,002

1010

FY 2009 OVERLAY PERCENT OF FY 2009 OVERLAY PERCENT OF LEVYLEVY

• E. BRIDGEWATER 2.78%• NORWELL 1.80% • ABINGTON 1.50%• BRIDGEWATER 1.30%• PEMBROKE 1.20%• WHITMAN 0.92%• HANOVER 0.70%

1111

FY2009 AVERAGE AND MEDIAN % OF FY2009 AVERAGE AND MEDIAN % OF OVERLAY FOR South Shore OVERLAY FOR South Shore

COMMUNITIES’ PREVIOUSLY COMMUNITIES’ PREVIOUSLY DISPLAYEDDISPLAYED

• Average 1.33%

• Median 1.40%

• Rockland FY 2008 1.42%

• Rockland FY 2009 2.46%

1212

ROCKLANDROCKLAND FY 2009 FY 2009 ADDITION to GROWTH for POLES & ADDITION to GROWTH for POLES &

WIRES AND CWIPWIRES AND CWIP

• Because the DOR valued poles & wires over public ways and construction work in progress for the first time. Close to $12,400,000 in new growth has been added

• However, the DOR is requiring that each city and town reserve the additional tax dollars in the overlay account since the cases are being appealed.

• Rockland Tax Amt. is $130,000.

1313

2009 OVERLAY BREAKDOWN2009 OVERLAY BREAKDOWN

• $130,000 reserved per DOR request.• $125,000 for exemptions to provide

payment to qualified disabled veterans and elderly taxpayers.

• $170,000 for unpaid real and personal property taxes.

• $65,000 for potential abatements due to abatement application filings.

• Total: $490,000 Recap Overlay: $506,560

1414

1515

WHY NOW IS WHY NOW IS NOTNOT THE TIME TO THE TIME TO UNDERFUND THE OVERLAYUNDERFUND THE OVERLAY

• WITH THE ECONOMY TECHNICALLY IN RECESSION, BUSINESSES COULD CONTINUE TO FAIL, RESIDENTS CAN CONTINUE TO LOSE THEIR JOBS. THIS RESULTS IN A SIGNIFICANT INCREASE IN UNPAID TAXES, ABATEMENT & EXEMPTION APPLICATIONS.

1616

EXEMPTIONS & MANDATED EXEMPTIONS & MANDATED OVERLAYOVERLAY

• FY2009 EXEMPTIONS EXPECTED TO BE $125,000.

• DOR IS REQUIRING THAT THE $130,000 REALIZED AS A RESULT OF THE POLES & WIRES AND CWIP DECISIONS IN THE TELECOMMUNICATION CASES BE SET ASIDE IN THE OVERLAY ACCOUNT.

1717

$425,000$425,000 is allocated before any is allocated before any FY2009 abatementFY2009 abatement

• This means the assessors would have only $65,000 of the overlay remaining for abatements.

IMPORTANT:• Exemptions are mandated and aimed to assist

our vulnerable, qualified disabled veterans and elders.

• NOTE: – Most of the exemption dollars are reimbursed back to

Rockland and become a portion of dollars available.

1818

CONCLUSIONCONCLUSION

• The overlay account dollars of $506,560 protects Rockland from potential liability and is unlikely to result in a deficit that will have to be raised in FY2010.

1919

Thank you for viewing this Thank you for viewing this presentation.presentation.

• We are available for questions.

If we do not have an immediate answer we will do additional

research to answer your question.