2005 State-Owned Land Valuation by Marilyn H

A Publication of the Department of Revenue’s Division of Local Services Cityand Alan LeBovidge Commissioner Gerard D. Perry Deputy Commissioner Town Volume 18, No. 4 April 2005

2005 State-Owned Land Valuation by Marilyn H. Browne

The Commissioner of Revenue deter- cepted street lists and valued the prop- tional mail of its availability. This data mines the fair cash value of certain erties without input from the local asses- was put forth for assessors to reconcile state-owned lands (SOL) pursuant to sors. It was clear after the 2000 SOL their data with ours to eliminate uncer- M.G.L. Ch. 58 Secs. 13–17 and Ch. 59 valuation that many local assessors tainties about what land is eligible for Sec. 5G. Cities and towns are reim- did not know what land in their com- reimbursement in advance of the 2005 bursed for loss of local tax revenue on munities was reimbursable. We believe SOL valuation. In a letter dated Febru- the Cherry Sheet’s Payment-in-Lieu-of- that was due to the fact that assessors ary 27, 2004, communities were in- Tax, or by MWRA through the Depart- change frequently, non-taxable proper- formed that the Water Supply Protec- ment of Conservation and Recreation’s ties are not typically where assessors tion Land data (Ch. 59 Sec. 5G), was Division of Water Supply Protection invest their time and scarce resources posted to the Internet and they were (formerly MDC Watershed Land). and because BLA, not assessors, val- expected to have it reconciled by June ued the reimbursable SOL land. 30, 2004. The 2005 certification com- Background and Valuation Modification munities were expected to have all SOL After a great deal of deliberation over Beginning after the 2005 SOL valuation, work, regardless of the reimbursement several years BLA developed a pro- the program will be conducted once program, completed by the time they posed new valuation approach. The every four years (previously it was once received preliminary certification. Rec- approach would make use of existing every five years) thereby making SOL onciliation was also needed because state-owned land data and existing val- values more reflective of the real estate only land that was taxable before it uation programs such as recently certi- market. This, and other changes affect- was acquired by the state is eligible for fied local land values, biennial equal- ing SOL are the result of Chapter 262 reimbursement. This often makes SOL ized valuation (EQV) percentages and of the Acts of 2004 that was approved parcels look like jigsaw puzzles with interim year adjustment reports. This on August 9, 2004. This legislative missing pieces when the non-reim- plan would also eliminate the need for change and the modifications in valua- bursable portions are removed and as- expensive consultants. tion methodology are the culmination sessors frequently did not have records of work done by the Bureau of Local To facilitate the new valuation method- of these ineligible sections. At the time Assessment (BLA) in conjunction with ology, three-digit property classification this article was written 95 percent of the Massachusetts Association of As- use codes were developed and pub- continued on page eight sessing Officers. The former methodol- lished in December 2002 to allow for ogy was time consuming, cost prohibi- easy electronic identification by asses- Inside This Issue tive and in need of updating to make sors. On April 23, 2003, BLA posted the the valuation transparent to local as- M.G.L. Ch. 58 Secs. 13–17 state-owned From the Deputy Commissioner ...... 2 sessors. Previously the BLA collected land database to the Internet and noti- Legal land sales information, zoning data, ac- fied communities by e-mail and tradi- Sewer Assessment Bylaw Upheld...... 2 Focus M.G.L. Ch. 58 Secs. 13–17, State-Owned Land Timetable — 2005 Employee Health Insurance in Massachusetts: Condition Serious...... 3 January 1, 2005 Valuation date Course 101 DVDs...... 5 June 1, 2005 BLA Mails proposed SOL values Library Funding Update ...... 5 June 10, 2005 BLA Hearings held DLS Update July 20, 2005 BLA Issues revisions of values Foley Appointed to Appellate Tax Board ...... 6 New Officials Finance Forum ...... 6 August 10, 2005 Assessors Appeals of SOL values to ATB Governor Unveils New Transportation Plan . . . 6 January 20, 2006 ATB Acts conclusively on appeals What is a Gubernatorial State of Emergency? 7 Table 1 DLS Profile ...... 9 City & Town April 2005 Division of Local Services 2

From the Deputy Commissioner On March 3, 2005, in Our Opinion Lieutenant Governor Legal Kerry Healey chaired a seminar Sewer Assessment adopted a sewer assessment bylaw in on “Understanding 1998 that was further amended in 1999. the Tax Foreclosure Bylaw Upheld As set forth in M.G.L. Ch. 40 Sec. 32, Process” at the State House. Pan- the Attorney General reviewed and ap- by James Crowley elists included officials from the pub- proved the bylaw and the amendment. lic and private sector. The Town of Acton approved a major The Acton bylaw authorized the uniform sewer project and its method of appor- unit method of assessment. In another A tax taking is a mechanism whereby tioning the costs became the subject action, the town also adopted M.G.L. a community perfects a lien to assure of a lawsuit. A large property owner, Ch. 83 Sec. 15B, which permits esti- payment of outstanding taxes. The W.R. Grace & Co. (Grace), received a mated sewer assessments provided tax title process actually begins when $2.2 million estimated sewer assess- they do not exceed one-half of the mu- property tax bills issued by the col- ment in 2001 since final construction nicipality’s liability under the sewer lector become delinquent. An official costs had not yet been determined. In construction contract. In fact, Acton’s from the Massachusetts Association accordance with special legislation (Ch. estimated assessments were less than of Assessing Officers discussed ex- 340 of the Acts of 2000) Grace chose one-half of the total construction cost. emptions and tax deferrals, which en- to apportion costs by making quarterly able elderly taxpayers to reduce or payments over a 30-year period, rather In this case, the taxpayer contended postpone payment of their local tax than the conventional 20-year time that Acton’s uniform unit method bylaw obligations and avoid delinquencies. frame. Grace also brought suit in Supe- exceeded the town’s authority under the Two officials from the Massachusetts rior Court to challenge the validity of the Home Rule Amendment (Art. 89 Sec. 6 Collectors & Treasurers Association Acton sewer bylaw as well as the town’s of the Amendments to the Mass. Con- explained that a valid lien is essential calculation of the assessment. The stitution). Secondly, Grace argued that for a proper tax taking. A parcel must lower court judge dismissed the claims its assessment was improperly calcu- be properly described on the tax bill and an appeal was made to the Ap- lated. The Appeals Court, however, held and the assessors’ maps are essen- peals Court. The Appeals Court upheld that the bylaw was valid, and any claim tial to proper assessment. the actions taken by the town. This re- of over assessment was premature. According to the Appeals Court, the Two attorneys from the Land Court cent decision is W.R. Grace & Co.- Legislature did not intend to preempt explained the process of tax title fore- Conn. v. Town of Acton, 62 Mass. App. local action since M.G.L. Ch. 83 Sec. closures. The Land Court recorder Ct. 462 (2004). 15 explicitly authorized municipalities outlined new procedures and new Under M.G.L. Ch. 83 Sec. 15 munici- to apportion costs through ordinances technology to expedite tax foreclosure palities can opt to apportion sewer con- and bylaws. Acton’s bylaw established cases. The procedure essentially bal- struction costs by a “fixed uniform rate” how residential equivalent assessment ances the 14th Amendment Due Proc- or a “uniform unit method.” M.G.L. Ch. units would be determined for multi- ess rights of the taxpayer with the 83 Sec. 15 defines the uniform rate as family residential and commercial prop- community’s interest in obtaining tax being based upon frontage or area or erties. Under Acton’s formula, a three revenue. In the event of a foreclosure, according to both frontage and area. bedroom single family residence was the parcel becomes a “tax posses- Alternatively, communities can divide projected to use 300 gallons per day, sion” property and can be disposed the project costs among the total num- which would be measured as one of by the community. ber of existing and potential sewer sewer unit. With regard to commercial We wish to thank all those who partici- units to be served. M.G.L. Ch. 83 Sec. property, residential equivalency was pated in this informative and success- 15 provides in pertinent part that “Each based on the size of the structure and ful meeting. sewer unit shall be equal to a single the lot. The Acton bylaw set 75 gallons family residence. Potential sewer units per day per 1,000 square feet as the shall be calculated on the basis of zon- flow rate for commercial property. Under ing then in effect. Existing and potential its formula, Acton would attribute one multifamily, commercial, industrial and sewer unit for every 4,000 square feet semipublic uses shall be converted of floor space. In the Appeals Court’s Gerard D. Perry into sewer units on the basis of residen- Deputy Commissioner continued on page nine tial equivalents.” The Town of Acton City & Town April 2005 Division of Local Services 3

Focus on Municipal Finance a role, the escalating cost of health in- the structure of health insurance ar- Employee Health surance for employees is the fastest rangements, which insulate consumers Insurance in growing cost center in most municipal- from the real cost of their health care ities. The Boston Globe reported on decisions. Low co-payments lead to Massachusetts: the strain across the state in 2004, cit- higher premiums, and most municipal- ing double-digit percentage increases ities in the Commonwealth have high Condition Serious in a number of cities and towns. The contribution rates, so that cities and by Jarrett Connor, Worcester Regional Research Bureau towns bear a large percentage of Worcester Regional Research Bureau survey of 28 cities and towns in Mass- those high premiums. achusetts reveals that most Massachu- The following article is based on data in Changes in the structure of employee setts cities are out of step with national the Worcester Regional Research Bu- health insurance, particularly plan de- and regional averages for health care reau report entitled Condition Serious, sign elements such as office visit and expenditures.1 For example, since 1991, Prognosis Uncertain: The Impact of prescription drug co-payments, can in the City of Worcester, health insurance Municipal Employee Health Insurance alter the way health care is consumed, costs have climbed from 8.5 percent of in Massachusetts, which is available at and bring premiums down for both em- the city’s budget to 15 percent, making www.wrrb.org. This report includes ployers and employees. Private em- it the largest single budget item after the data on national and regional trends for ployers have been making these adjust- city’s public schools. states, localities and private employers, ments during the last decade, but such and the results from a survey of the Causes for the Cost Increases changes are slow in coming to munici- health benefits in 28 cities and towns in pal governments in Massachusetts. Na- Massachusetts. Increases in the cost of insurance are driven by rapid increases in the cost of tionally, in 2000, fewer than 20 percent Municipalities in Massachusetts — par- health care. Advanced technology, ex- of employers reported office visit co- ticularly larger cities — have struggled pensive prescription drugs and in- payments of $15 or $20. In 2004, over in recent years to maintain stable finan- creased longevity all contribute to the 60 percent of those employers required cial footing. While fluctuating levels of escalating cost of health care. How- higher co-payments for office visits 2 state and federal support have played ever, many of these costs are related to (see Figure 1). One health plan reports that less than 1.5 percent of its private- employer members offered a $5 office National Percentage of Employees with HMO Office-Visit Co-Pays visit co-payment, while 75 percent of of $15 or $20: 1996 to 2004 municipal members did. Similarly, only 3

70% percent of nationally surveyed employers reported a $5 office visit co-pay-

60% ment. Only three cities with a population over 50,000 required co-payments

50% of $15 or higher, suggesting that plan design is an area in need of reform in 40% many municipalities. Contribution Rates Percentage 30% Contribution rates are higher in large HMO co-pay of $15 or $20 20% cities including Worcester than in smaller cities and towns, or in private 10% industry. Again, the City of Worcester provides an example of the problem in 0% many of the larger cities in Massachu- 1996 1998 2000 2002 2003 2004 setts. Worcester offers a 90 percent Year contribution rate, the highest contribu- Source: Kaiser Family Foundation and Health Education Research Trust. Employer Health Benefits 2004 Survey. Prepared by Worcester Regional Research Bureau. tion rate allowed by law for the HMO plans, and 87 percent for the more ex- Figure 1 continued on page four City & Town April 2005 Division of Local Services 4

Health Insurance continued from page three search Bureau do not require employ- Contribution to Family Plans in Worcester ees to enroll in Medicare when they be- and by Industry Nationwide come eligible. As a result, many eligible employees remain on more expensive 100% conventional plans. Most private em- 2004 Employer contribution rates to HMO 2004 Employer contribution rates to POS ployers do not offer retiree health ben- 90% efits at all. Change Contribution Rates 80% Changes to contribution rates can have a significant impact on municipal 70% finances. In Worcester, for instance, a Contribution rate Contribution change to a 75 percent contribution 60% rate for all plans would result in $8 million in savings to the city. If the city con- tributed 75 percent of the lowest cost 50% All Manufacturing Finance Service State/Local City of provider and an equal dollar amount for Industries Government Worcester more expensive plans, the city would Industry save over $15 million — enough to hire Source: Kaiser Family Foundation and Health Education Research Trust. Employer Health Benefits 2004 Survey. Worcester Office of Human Resources. 250 additional employees, or return Prepared by Worcester Regional Research Bureau. $250 to the average homeowner and $1,300 to the average business owner. Family Contribution Rates Plan Design 100% Massachusetts’ cities and towns should aim to align their co-payment structures 90% with private industry and national averages. Plan designs that allow con- 80% sumers to see the cost of their health care decisions make it more likely that they will make more prudent health care 70%

Contribution rate Contribution decisions, reducing the unnecessary use of medical resources and alleviating 60% some of the upward pressure on prices and premiums. As total premiums come

50% down, cities and towns as well as em- Northeast Massachusetts City of Northeast Massachusetts City of ployees will benefit. average cities over 50,000 Worcester average cities over 50,000 Worcester (HMO) (HMO) (HMO) (POS) (POS) (HMO) Retiree Plans Area Cities and towns should examine the Figures 2 and 3 contribution rates for retirees who re- pensive Point of Service (POS) plans. Retiree Benefits and Medicare main on conventional plans. Cities may Nationally, employers average less than An additional burden borne by all cities change those rates and create an in- 75 percent contribution rate for HMO and towns in Massachusetts and by few centive for retirees to select Medicare 2 and POS plans. State and local govern- private employers is the cost of retiree plans voluntarily (hence avoiding the ments nationally average a contribution health benefits. Municipalities have the penalties associated with requiring en- rate of under 60 percent for POS plans. option, through Chapter 32B, Sec. 18 of rollment in Medicare via M.G.L. Chap- The Massachusetts cities with popula- Massachusetts General Laws, to re- ter 32B, Sec. 18). tions over 50,000 surveyed by the Re- quire eligible retirees to enroll in Medi- Obstacles to Reform search Bureau averaged an 82 percent care (doing so obligates the municipal- contribution rate for HMO plans, indicat- ity to pay Medicare penalties for late The obstacles to reform in municipalities ing that larger cities do not have contri- enrollment if the retiree is over 65 and are well known: changes to employee bution rates in line with the national av- not enrolled in Medicare). Half of the health benefits must be achieved erages (see Figures 2 and 3). cities and towns surveyed by the Re- through collective bargaining. In some continued on page five City & Town April 2005 Division of Local Services 5

Health Insurance continued from page four Library Funding Update cases, cities must negotiate with all benefits for state employees who are The Federal Institute of Museum and unions combined for health benefits now required to contribute 25 percent Library Services announced grants to- through an Insurance Advisory Com- of the premiums and $15 co-payments 3 taling over $160 million to state library mission. Unions often oppose changes for office visits. The strategy employed agencies earlier this year. The grants to existing health benefits. by the state may be needed in order to are awarded under the Library Serv- keep cities like Worcester solvent. The difficulty of advocating changes ices and Technology Act and are through union negotiations prompted Editor’s note: This article represents the opinions made to each state’s library agency to the Metropolitan Coalition of Mayors and conclusions of the author and not those of administer the funds according to a (Boston, Cambridge, Chelsea, Everett, the Department of Revenue. population-based formula. Massachu- Malden, Melrose, Medford, Quincy, Re- 1. Brenda Buote, “Cities, Towns Join to Lower setts will receive $3,423,733. In the vere and Somerville) to request a state Health Premiums.” Boston Globe, November 7, Commonwealth, the Massachusetts mandate that cities may not contribute 2004, Globe North, Page 1. “Health Insurance Board of Library Commissioners Saps Local Budgets” Boston Globe, February 22, more than 75 percent of health insur- 2004, Globe North. Page 1. (MBLC) is charged with administering ance premiums as a part of their “Core 2. National data on health insurance contribution these grants. rates are from the Kaiser Family Foundation Elements of Municipal Relief.” In its re- Some of the libraries in Massachusetts port of February 28, 2005, the Research Employer Sponsored Health Benefits: 2004 Survey and the International City Management Asso- that will benefit from theses grants in- Bureau recommended that Worcester ciation’s “Health Plans for Local Government clude the Watertown Free Public Library, city leaders lobby for state legislation to Employees 2002.” the Central Massachusetts Regional Li- address the issue of employee health 3. The Commonwealth adopted different contri- brary System in Shrewsbury, and the benefits for municipalities if negotiations bution rates for employees hired before and after June 30, 2003, and also offers an 85 percent Snell Library at Northeastern University. cannot produce the needed reforms. contribution rate for employees making under Legislation was the method of reform $35,000 per year. In his budget recommendations for the used to change the structure of health upcoming fiscal year, Governor Rom- ney proposed an increase in funding for library service across the Common- and/or other personal circumstances Course 101 DVDs wealth. The FY06 House 1 budget pro- other than travel distance. The Division of Local Services has posal includes an increase of almost completed a videotaped version of • Course 101 participants who do $95,000 in the administrative account of Course 101, the basic course for not pass the examination and would the MBLC and a $150,000 increase in assessors, which is now available in like to review the DVD version as a the Library Technology and Resource DVD format. refresher. Sharing account. Although not intended to replace the • Internal training for assessor and According to Robert C. Maier, Director traditional Course 101 classes, the their staff. of the MBLC, “Funds in the MBLC ad- Course 101 DVDs may be used for: ministrative account will, in part, permit For information on how to obtain us to fill the head of Library Develop- • Assessors and others who cannot copies of the DVD version of ment/Deputy Director position that has attend a regular classroom offering Course 101, please contact Joan been vacant since October 2002. The of the course due to disability, illness Grourke at 617-626-2353 or $150,000 increase in the Library Tech- [email protected]. nology and Resource Sharing account will be distributed to the nine auto- mated library networks where it will reduce costs for member libraries and ease their local budgets.” City & Town April 2005 Division of Local Services 6

DLS Update Foley Appointed to New Officials Finance Forum The plan directs at least 75 percent of all new capital spending toward main- The Division of Local Services (DLS) is Appellate Tax Board taining and improving the Common- presenting a seminar for recently On March 2, mem- wealth’s existing transportation net- elected officials on Friday, June 3, 2005, bers of the Gover- work. The majority of funds will be at the Best Western Yankee Drummer nor’s Council unani- dedicated to bridge repair, highway re- Inn (formerly the Ramada Inn) in mously voted to construction and intersection and inter- Auburn. Selectmen, mayors, city/town approve Governor change modernization. Romney’s nomina- council members, accountants, audi- tion of Anne Foley tors, assessors, collectors, treasurers, In order to improve commute times, to the state Appel- clerks, finance directors, city/town man- Romney said the plan recommends $12 late Tax Board. Gov- agers and finance committee members billion in reconstructing, decongesting ernor Romney has also designated Ms. and their staffs are invited to participate. and expanding roadways across the Foley as the chairperson of this five- New officials will gain a basic under- Commonwealth, including all major 1 member board, which adjudicates standing of Proposition 2 ⁄2, budgeting, choke points. In addition to tackling cases on appeal from state and local setting the tax rate, free cash and re- hundreds of high-accident intersections taxing authorities. serve and debt policies. and roads, the blueprint calls for the widening of Route 3 on the South Shore, This seminar encourages a team ap- For the past 12 years, Ms. Foley has making Route 2 a major east-west proach to fiscal management. After a served as tax counsel in the Depart- artery and wiring Interstate 91 in the Pi- presentation by DLS staff, participants ment of Revenue (DOR), practicing in oneer Valley to provide a fiber-optic will have the opportunity to work with both the Litigation Bureau and the Rul- “backbone” to convey traffic and other other local officials to calculate a levy ings and Regulations Bureau. Prior to high-tech communications in the region. coming to DOR, she was an associate limit and to complete a tax recapitula- in the tax department of Ropes & Gray tion sheet. The governor’s plan also includes a number of transit expansions over the for four years and with Cleary, Gottlieb, Participants will return to their communi- next 20 years, such as extending the Steen and Hamilton, a New York City ties with knowledge and understanding commuter rail to Fall River and New law firm, for another two. She also that should enable them to be effective Bedford and the Blue Line to Lynn, in- taught law at the New England School and efficient members of their local fi- creasing rail service between Worces- of Law. Ms. Foley is a magna cum nancial management teams. They will ter and Boston, and building the Urban laude graduate of Boston College Law know whom to contact at DLS for tech- Ring, a rapid transit bus service that School where she edited the Boston nical assistance if needed. Attendees connects points around Boston. College Law Review. She also holds a will receive written materials that will be master’s degree in educational admin- an excellent resource. DLS will award The long-range plan, including project- istration from the University of Chicago. certificates to those who complete the specific information by region, can be In 1999, she received the Common- seminar. A registration bulletin contain- viewed at www.mass.gov/eot. Accord- wealth of Massachusetts Pride in Per- ing further information is available on- ing to Transportation Secretary Daniel formance Award. line at www.mass.gov/dls/publ/bull/ A. Grabauskas, the Romney adminis- Regarding Ms. Foley’s appointment, 2005/2005_06B.pdf. tration will gather feedback on the plan Commissioner of Revenue Alan LeBov- from around the state over the next Governor Unveils New several months and make necessary idge said, “In addition to her vast tech- nical knowledge, Anne will be a strong, Transportation Plan adjustments. balanced and judicious leader for the Governor Mitt Romney recently unveiled Appellate Tax Board.” Ms. Foley and a comprehensive, multi-modal state- her husband, Jonathan, have five sons wide transportation blueprint that will in- (including two sets of twins) and reside vest nearly $31 billion over the next two in Lexington. decades in the state’s roads, bridges and transit network. City & Town April 2005 Division of Local Services 7

clared, including the taking and using What is a of property for the protection of the Gubernatorial States of Gubernatorial State Commonwealth. Actions such as or- Emergency dering evacuations, restricting access, 1941 WWII — Creation of MA Committee on of Emergency? implementing curfews, driving bans or Public Safety 1941 WWII — Blackout provisions by Peter Judge, Public Information Officer, restrictions, etc., can be stated in the declaration to protect health and wel- 1941 WWII — Consolidation of MA Division Massachusetts Emergency Management Agency of Employment Security with U.S. fare if warranted. The Governor of the Commonwealth of Employment Service Massachusetts is authorized under state The SOE may cover a specific munici- 1953 Worcester tornado law to declare a gubernatorial state of pality (a tornado), multiple communities 1954 Hurricanes Carol/Edna 1955 Hurricanes Connie/Diane emergency upon the occurrence of a or counties (a coastal storm), or the en- 1957 Drought/forest fires (undertaking natural or man-made disaster. The law tire Commonwealth (a major blizzard). artificial rain-making) gives the governor broad authority to The governor is also authorized to is- 1962 MTA strike implement emergency measures to sue executive orders to meet the needs 1978 Blizzard of ’78 ensure the safety and health of the res- of a threat, emergency or disaster. 1979 MBTA placed in receivership idents of the Commonwealth, take ap- These orders have the force of law and 1980 MBTA placed in receivership propriate steps to mobilize state assets, supersede existing law if there is any 1981 Natural gas shortage 1981 Lynn fire and conduct other emergency business conflict between a law and the execu- 1983 Chelsea Street Bridge for the protection of the Commonwealth. tive order. 1984 Flooding A gubernatorial state of emergency 1984 Peabody explosion and fire The governor looks to the Massachu- (SOE) is initiated when it becomes nec- 1994 Snowstorm setts Emergency Management Agency essary for the governor to assume 1995 Malden Mills fire (MEMA) director for recommendations command (direction and control) for 1999 Worcester warehouse fire concerning all matters related to carry- 2001 Snowstorm the efficient utilization of the total re- ing out the operational aspects of the 2001 9/11 sources of the Commonwealth, in order Commonwealth’s Emergency Manage- 2001 Snowstorm/flooding to mitigate the effects on people and ment Program. The governor may, on a 2004 Flooding property of a large-scale threat, emer- 2005 Snowstorm recommendation by the director, au- gency or disaster. thorize assistance from various appro- Major Federal Disaster There is a misconception that various priate state agencies, and request fed- Declarations restrictions or bans automatically are eral agency support allowable under 1953 Worcester tornado triggered when there is a gubernatorial existing federal statutory authority, to 1954 Hurricanes Carol/Edna state of emergency in place. This is not tender assistance. MEMA drafts the 1955 Hurricanes Connie/Diane so. The declaration of an SOE does not appropriate documentation for a gu- 1972 Toxic algae in the costal waters in itself affect the operation of private bernatorial SOE and requests for pres- 1973 Chelsea fire enterprise. Travel is not automatically idential assistance when needed. 1978 Blizzard of ’78 banned and businesses are not auto- 1981 Lynn fire A gubernatorial SOE does not mean 1985 Hurricane Gloria matically closed. For example, during that the state will provide financial as- 1987 Severe flooding the January 22–23, 2005, snowstorm sistance to cities and towns affected by 1991 Costal storm there were no travel restrictions. 1991 Hurricane Bob the disaster. There is no disaster fund 1992 Winter costal storm An SOE may be accompanied by a re- available to the governor or the MEMA 1996 Costal flooding quest by the governor to stay off the director. State financial assistance may 1996 Blizzard of ’96 roads, to release employees early, or be made available by a vote of the Leg- 1998 Flooding to stagger arrival at work, in order to islature following the declaration of a 2001 Flooding promote public safety. These actions, gubernatorial SOE, because of the dis- 2004 Flooding however, are usually in the form of a re- aster. It is important to note that in many Federal Emergency Declarations quest, not an order. In extreme circum- instances when a gubernatorial SOE is stances, the governor, as part of his declared, there is no need for financial 1996 Flooding 1999 Worcester warehouse fire SOE, may order roads be closed to all support to carry out emergency actions. 2001 Snowstorm but emergency traffic, such as oc- Operational and financial recovery as- 2003 Snowstorm curred during and immediately follow- sistance may become available from 2004 Snowstorm ing the blizzard of ’78. the federal government following a dis- 2005 Snowstorm aster. It is predicated upon a Presiden- The governor is authorized to exercise Table 1 tial Declaration of Emergency or Disas- certain powers when an SOE is de- continued on page nine City & Town April 2005 Division of Local Services 8

2005 State-Owned Land Valuation continued from page one review of their property values for certi- Many state-owned properties were ac- State-Owned Land, fication purposes beginning in fiscal quired a great many years ago and M.G.L. Ch. 58 Sec. 13, year 2004. In a letter dated September records were sketchy. BLA has worked Cherry Sheet Payments 17, 2003, the FY2005 certification com- with the Department of Conservation FY81 $15,730,538 munities were advised to complete their and Recreation’s Water Supply Protec- FY82 14,742,061 reconciliation as soon as possible and tion Division (the former Metropolitan FY83 14,720,436 the FY2006 final third of communities District Commission’s Watershed Divi- FY84 14,700,000 were told in a letter dated February 25, sion) to ensure that the agency’s FY85 14,700,000 2004, to have their reconciliation’s com- records are in accord with those of the FY86 18,210,204 FY87 15,535,694 pleted by June 30, 2004. municipalities’ and BLA’s. If acreage records differ slightly BLA usually errs FY88 0 To assist assessors with the SOL rec- FY89 0 on the side of the municipality. Gener- onciliation process, communities were FY90 0 ally we agree to acreage if two of the provided a paper copy of reimbursable FY91 0 three parties involved in water supply SOL as indicated in BLA’s SOL data- FY92 0 land have similar data. Additionally, FY93 6,500,000 base. Also provided were instructions BLA is willing to consider acreage ad- FY94 6,500,000 to access the BLA website containing justments if a municipality has an up- FY95 6,500,000 guidelines and information needed to to-date geographic information system FY96 6,900,000 reconcile a community’s SOL. Asses- FY97 7,900,000 (mapping) that is based on a recent fly- sors could also review BLA’s historical FY98 10,000,000 over. Each city or town must follow all of records if they so chose. The guidelines FY99 12,000,000 our guidelines so that all are treated uni- explain the criteria to qualify SOL as re- FY00 15,000,000 formly statewide. FY01 18,000,000 imbursable and the valuation method- FY02 15,000,000 ologies employed to value all SOL, e.g., History of State-Owned Land FY03 10,000,000 land segmentation categories such as Reimbursements FY04 8,000,000 prime lots, residual and unbuildable FY05 12,500,000 Fiscal year 1993 saw a separate line on acreage; utilization of local zoning re- the Cherry Sheets for state-owned land Table 2 quirements and predominant land use; reimbursement for the first time since and use of BLA’s excess lot and large the 289 communities had completed fiscal year 1987. In FY88 several state acreage tables. the SOL reconciliation process. aid programs were consolidated into a Assessors reviewed local historical in- Cherry Sheet line called Additional As- Part of Chapter 262 of the Acts of 2004 formation such as property record sistance at their FY87 levels where they synchronizes SOL and EQV Appellate cards, deeds, orders of taking, assess- were expected to remain. However, be- Tax Board appeals and authorizes BLA ing maps and the local commitment ginning in FY91 sharp reductions in ap- to hold, for the first time, informal SOL books relative to the BLA guidelines. propriations began to occur. It became hearings to make valuation adjustments Bureau appraisal advisors coordinated apparent that some municipalities were if warranted. Through the active involve- efforts with local assessors to facilitate a not receiving SOL reimbursement. Cur- ment of local assessors the revised val- sometimes daunting and time consum- rently, House 1 is proposing a ramping uation process and valuation hearings, ing reconciliation process. Once com- up of SOL payments over the next five BLA expects to reduce the number of pleted and mutually agreed to by local years so that full funding would occur in Appellate Tax Board appeals and their assessors and the Bureau, the data col- 2010 according to the statutory formula associated litigation costs for municipal- lection phase of the valuation process in Ch. 58 Sec. 13. If SOL were fully ities and DOR. The modified process ends and the data only needs to be funded for FY2005 the total reimburse- also allows the ATB more time to decide maintained by adding new eligible SOL ment would have been $24,446,803 SOL issues. The new timetable is out- or deleting ineligible properties. This rather than the $12,500,000 actual reim- lined in Table 1. process should require minimal work. bursement. Table 2 shows reimburse- In January 2003 the Bureau updated its The signing of the reconciliation letter ments statewide beginning in fiscal year Guidelines for Development of a Mini- does not preclude assessors from ap- 1981 through fiscal year 2005 (it does mum Reassessment Program to include pealing a SOL valuation to the ATB or not include payments for watershed a section on state-owned land. A re- requesting BLA to revise acreage or land that are distributed by DCR). view of the proper application of these segmentation should new evidence guidelines is conducted by BLA in come to light. every community undergoing a triennial City & Town April 2005 Division of Local Services 9

DLS Profile: Information Technology Staff Bylaw Upheld continued from page two view, the Acton bylaw was valid since Mike Quinlivan is the newest staff member in assessments under the flow rate for- the Division of Local Services’ Information Tech- mula were reasonable and proportional. nology (IT) Section. He brings to the Division a wealth of knowledge and experience in terms Regarding the calculation of the as- of treasury, collections and assessment soft- sessment, the Appeals Court ruled that ware applications, as well as the functions and the taxpayer’s remedy was an abate- duties these municipal offices typically perform. ment. However, the court held that the taxpayer could not pursue this claim at Mike began working in the Division’s Worcester the present time since M.G.L. Ch. 83 regional office in October 2004. He assists cities Sec. 15B expressly stated that “the and towns in the central and western parts of provisions of Chapter eighty relating to the state with IT matters such as programming, abatements shall not apply to estimated networking, and working with various software assessments under this section.” Con- applications. One project he is currently devot- sequently, the taxpayer had to receive ing a great deal of time to is assisting the Com- a notice of final assessment before fil- munity Software Consortium with rewriting its Mike Quinlivan ing an application for abatement. software application for collections. According to Mike, these improvements will “help collectors with day-to-day activities as well Accordingly, the Appeals Court de- as reporting functions.” clared the Acton bylaw to be valid. This decision is of interest since this was a Prior to coming to the Division, Mike worked as an application programmer for an case of first impression. There was no appraisal software company in Massachusetts. In this capacity, he worked on as- prior court decision interpreting resi- sessment systems for other states as well as various cities and towns in Mass- dential equivalent assessments. The achusetts. He once owned his own municipal software consulting business that Legislature left this statutory term un- specialized in treasury and collection applications. defined and allowed local communities Mike became interested in working for the Division “because DOR is well re- to make the determination through spected by local officials for its professionalism and knowledge. I thought I would bylaw and ordinance. Acton’s bylaw try to see if I could become part of it.” was upheld since it was neither arbi- trary nor capricious. Mike is originally from Worcester but now resides in Paxton. He has attended the University of Massachusetts at Amherst, as well at the Worcester Polytechnic In- stitute where he studied client server programming. At Central New England Col- City &Town City &Town is published by the Massachusetts Depart- lege, Mike completed courses in information technology. ment of Revenue’s Division of Local Services (DLS) In May 2004, Mike was elected to his first term as a selectman in Paxton. and is designed to address matters of interest to local officials. Joan E. Grourke, Editor State of Emergency continued from page seven To obtain information or publications, contact the ter, as we saw following the January 22–23, 2005, blizzard, and requires the gov- Division of Local Services via: ernor’s activation of the Massachusetts Comprehensive Emergency Management • website: www.mass.gov/dls (CEM) Plan, with written justification that the Commonwealth and its political sub- • telephone: (617) 626-2300 divisions have inadequate resources to cope with the emergency or disaster. • mail: PO Box 9569, Boston, MA 02114-9569 The governor is given these broad emergency powers through a number of sources including the Massachusetts Constitution, which vests supreme executive power in the governor, and Chapter 639 of the Acts of 1950, which spells out the Commonwealth’s preparation for and response to emergencies and disasters. For more information, see www.mass.gov/Eeops/docs//mema/mema_massachu setts_state_of_emergency_procedures.doc.