Senior Tax Deferral, Bay Spring Work Going Before Town Council
Barrington Town Council holding special meeting tonight on proposed tax deferment for seniors and a contract to make the Bay Spring Community Center second floor accessible to disabled.
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A proposed senior tax deferral and a contract to further renovate the Bay Spring Community Center are the focus of a special Barrington Town Council meeting tonight, March 18.
The town councilors also will appoint a new director to the Bristol County Water Authority and a member of the Ad Hoc Taxation/Assessment Advisory Committee.
The special meeting starts at the same time and in the same place as regular Town Council meetings: 7 pm in the Council Chamber in Town Hall.
The councilors called the special meeting primarily to assess the concept of a tax deferreal as a whole and various options presented by Finance Director Dean Huff at the March 4 meeting.
Tonight's discussion also is expected to deal with the “circuit breaker” tax-limiting program for residents with lower household incomes. That program already saves about 100 residents more than $125,000 in taxes each year.
The tax-deferral program for seniors would defer only the “incremental real estate tax increase" for residents after age 65 or 70 – not the entire real estate tax.
It would effectively “freeze” taxes after an “election date” until a future date 10, 15, 20 or more years down the road or the end of life. At that point, taxes would come due with interest under one of two options – either 6 percent compounded annually or 12 percent compounded at a daily rate.
Huff and Senior Services Advisory Board chair Margaret Kane both will make a presentation on the proposed senior tax deferral. Among the recommendations:
- Go to age 70 for a lifetime deferral.
- Be a Barrington resident for at least 10 years.
- Create income limits at either 80 percent of the HUD guideline for this region ($42,350 single, $48,400, 2 person) or 100% ($52,900 single or $60,500, 2- person).
- Create an assessment limit of 80 percent of Barrington median income, currently $272,440 to 100% - $340,550.
- A home could not have any deed restrictions.
- The deferment would be for a qualifying senior and spouse only -- no other people/relatives would be allowed to live in house.
- A senior could select either the tax deferral or the “circuit breaker,” not both.
A proposed $89,700 contract with Tower Construction would make renovations to the second floor of the community center and install an exterior lift so it would be accessible to the disabled under federal ADA laws. It has been off limits for shows for about a year.
An appropriation of $80,000 is in the capital budget for this project. The Friends of the Bay Spring Community Center also has agreed to allocate $7,000 for it. The Town Council also will be asked to approve the difference of $2,700 from the Council Contingency Fund.
Here is the agenda for the meeting:
TOWN COUNCIL SPECIAL MEETING
MONDAY, MARCH 18, 2013 @ 7:00 P.M.
COUNCIL CHAMBER, BARRINGTON TOWN HALL
Agenda
1. Call to Order
2. Pledge of Allegiance
3. Interview: Ad Hoc Taxation/Assessment Advisory Committee
4. Appointment to Ad Hoc Taxation/Assessment Advisory Committee and Bristol County Water Authority (BCWA)
5. Discuss and Act on Bay Spring Community Center Renovation Bid
6. Discuss and Act on Senior Tax Exemptions: Circuit Breaker and Proposed Senior Tax Deferment
7. Adjourn
Gary Morse
8:12 am on Monday, March 18, 2013
Correction to the above statement "either 6 percent compounded annually or 12 percent compounded at a daily rate".
The 12% is not a compounded rate. The 6% compounded (once a year) turns out to be similar to a 12% non compounded rate of interest over the long term, and thus the debate as to which should be chosen.
From an administrative and financial point of view, the 12% non compounded rate is better for everyone when measured over a longer term.
GG
8:26 am on Monday, March 18, 2013
This should also be corrected:
"•Create an assessment limit of 80 percent of Barrington median income, currently $272,440 to 100% - $340,550."
This looks more like the median home value than the median family income, which is about $93,000.
Gary Morse
8:40 am on Monday, March 18, 2013
One other point came up in the discussion of alternatives to this tax deferral program.
Since home expenses, such as repairs and upgrades, might be the reason that seniors living on fixed income would elect the tax deferral program, an alternative was discussed being improved sponsorship of Barrington's Community Development Block Grant (CDBG) program (a home repair program sponsored by HUD that few seniors are even aware of).
The Department of Housing and Urban Development (HUD) makes available to cities and towns funds that can be applied for each year supporting homeowners living at specific income levels. About 1/2 of Barrington residents might qualify for the CDBG program, but it is most often geared for low income residents.
Approximately 20% of Barrington's households have total household income below $40,000 per year (ref - US Census American Factfinder data).
The proposal to the Town Council includes better ways to keep residents from having to use the tax deferral program via other senior based programs that should be more effectively promoted.
Thanks to Financial Director Dean Huff, the Senior Services Advisory Board, and the Town Council, for making this initiative finally happen.
Barbara Donovan
11:59 am on Monday, March 18, 2013
Gary -how does one apply for the CDBG grant program? Barbara
C. Leatherman
3:45 pm on Monday, March 18, 2013
RE: The deferment would be for a qualifying senior and spouse only -- no other people/relatives would be allowed to live in house...Would this negate a senior's right to have someone reside in home in order to provide aide and attendance if it were medically necessary?