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Finances
Early adopters of the CPA will receive the largest amount of matching funds due to a minimum of communities being involved. As more communities adopt, the state matching percentage will decline. According to State officials, it is reasonable to expect the State Match to be 100% for at least the first two years of Wellesley's adoption, then drop over time to roughly 50% as more communities adopt the CPA.
For Wellesley, this means that CPA-eligible Town projects would have 50% of their allocated monies contributed by state matching funds in the first two years of adoption. Even as the match declines over time, it will still have a considerable effect, with 25% of CPA funds being contributed by the state. In a period of tight budgets, the CPA could alleviate some of the Town's financial needs through the leveraging effect of this matching fund.
Local Funding for CPA
As approved by Town Meeting and referendum, the local funding source for the Act in Wellesley is a surcharge of 1% on the annual property tax bill assessed on real property, with certain exemptions, commencing in fiscal year 2003.
Exemptions
The Act contains certain mandatory exemptions and allows communities to elect to include optional exemptions. Wellesley's Town Meeting has elected to include optional exemptions such that, if the Act is accepted, the following will be exempt from the surcharge:
One hundred thousand ($100,000) dollars of the value of each taxable parcel of residential real estate. (Note: the statute does not allow this exemption to be applied to commercial or industrial real estate);
Any property owned and occupied as a domicile by a taxpayer who qualifies for low income housing or moderate income senior housing;
Any taxpayer receiving a tax abatement would be entitled to a reduction of the surcharge in the same proportion as the abatement; and
Any taxpayer exempt from the real property tax.
CPC Financial Summary
For FY04-07
(in dollars)
Total Revenues
Surcharge (includes estimates for 07 |
$2,257,000 |
State Match (includes estimates for 07) |
2,247,000 |
TOTAL |
$4,514,000 |
Interest 12/04 |
30,000 |
TOTAL Revenues |
$4,544,000 |
Total Allocations
To Date: Have allocated 30% of revenues
Community Preservation Fund Uncommitted Balance: $3,154,596
(Includes anticipated FY07 surcharge and State Match)
Memo:
Project Allocations/Year
2005 Allocation $ 513,500
2006 Allocation 425,654
2007 Allocation 410,000
$1,349,154
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