Williamstown So Far Immune to Nation's Fiscal Woes
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That seems most apparent in the town's healthy real estate market, good news since Williamstown raises nearly three-quarters of its annual revenues from property taxes.
"I think we should take some comfort in knowing that residential selling prices in Williamstown have continued to be very strong for all of this year, thus far," Town Manager Peter Fohlin told the Selectmen on Monday night.
With the talk of hiring freezes and budget cuts in surrounding towns, Fohlin felt it was a good time to discuss Williamstown's status in regard to falling home values and housing starts, foreclosures, credit crunches and plummeting car sales — all of which can have an impact on the Village Beautiful's bottom line.
(He did, however, note that the town has in its eighth year of a hiring freeze.)
Rather than a raft of foreclosures, housing sales have been strong, said Fohlin, and have been rising through the year. In the first quarter of this year, homes were selling at about 105 percent of the median assessed value; in the latest quarter, it was about 111 percent.
"So were not seeing the softening of the selling prices relative to assessed value," said Fohlin. It doesn't mean people are getting the prices they "once dreamed off" or that there are lots of sales. "But we're getting strong monthly sales and they are selling at an increased premium."
In response to question by Selectman David Rempell, Fohlin said he did not know what they average selling price had been last year but believed it was in excess of this year's. "I think they are selling closer to their value."
The downside of the real estate market is foreclosures, but there have been "only" six in two years, he said.
"On a scale of what's happening in onther communities, across the state, nation, 'only six' is the right way to describe it," he said.
Even more importantly, none of the six had any relation to the ongoing mortgage crisis; rather, they each were caused by unique and known reasons.
Four — the Taconic Restaurant, two residences and a used car dealership — were caused by business failures and "complexities of life." Two other failed business foreclosures — Tupelo Honey and the Chimney Mirror Motel — have already been reopened by new owners.
The North Hoosac Road convenience store has been operating for several months as Harvest Moon General Store; the motel was purchased for $480,000 by Spice Root owners Tarun and Simmi Narula on Oct. 23. "I think we can be encouraged that [Tarun Narula] he'll do great things there."
There has been, however, a slight decline in the amount of excise tax bills compared to last year. The town bills car owners in "commitments," based on information provided by the Registry of Motor Vehicles. There are about 10 commitments are year, reflecting changes in car ownership.
The largest commitment is billed is the first one in January, which covers everyone who has retained or purchased a car in the preceding. The number of bills this past January dropped 67, from 4,878 to 4,810 (a loss of about $17,000) and has continued to decline slightly overall, with a total revenue loss to date of about $30,000.
That won't affect the budget, which carried a line item of $640,000 in annual excise tax; $643,141 has been taken in this year.
Fohlin said it won't be known how much slumping car sales have affected the town's excise revenue until next year's first billing. The older the car the less the value and excise tax. So, if residents are not buying newer (and presumably higher-priced) vehicles, excise revenues will be lower.
Property tax bills will be going out more than a month late because of the propety revaluation done this year, said Fohlin. The town received notice last Friday that the state Department of Revenue has given preliminary certification of the values.
Property owners can now come to the assessors and review their homes' value. The Selectmen will hold a tax classification hearing at its next meeting on Nov. 10 and bills should be in the mail around Nov. 14 and will be due 30 days later.
"We want people to know they can come in and pay their taxes in advance," said Fohlin. Those who wish should pay the same amount as last year; they will then be credited or billed according to this year's bill.
In other business:
- The Selectmen approved discussing a possible sale of town-owned land, the Blair lot off Green River Road, to state Fish & Wildlife. The agency is interested in acquiring the wooded, hillside property as a wildlife habitat. Leslie Reed-Evans of Rural Lands Foundation said the foundation had been interested in it some time back but the difficulty in accessing the landlocked mountainside and its steep incline was not suitable for its educational mission.
The discussion does not indicate an acceptance of an offer; any such decisions would be up town meeting. Other boards will be invited to submit input on the land's future.
- The Selectmen confirmed the appointment of Rex Lybrand of 89 Southworth St. to the Conservation Commission. Fohlin pointed to Lybrand's experience in architecture, urban planning, sustainable growth and natural systems in his nomination. Lybrand is assistant director of alumni relations at Williams College, where he serves on several committees.
- The Selectmen affirmed its opposition to Question 1 and indicated it would submit a letter stating members' position to local media.
- Fohlin asked that voters planning to vote by absentee ballot read the questions for this election before coming to the town clerk's office. A number of voters had been spending up to 30 minutes voting because they seemed unaware that there are three questions on the ballot related to the elimination of the income tax, the decriminalization of possession of small amounts of marijuana and the banning of greyhound racing.
