Longmeadow Property Taxes- Part II

This past February I researched historical property taxes for Longmeadow and compared them to the surrounding towns of East Longmeadow, Hampden and Wilbraham.  These results showed that Longmeadow has had significantly higher property taxes for the past 20 years vs. all of these surrounding towns.

This past week, information regarding a second bond ($17.5 million) that will be issued by Longmeadow in mid-October for the remainder of the required $44.1 million financing was presented to the Select Board.  This second bond will have a duration of 20 years at an interest rate estimated at 3.65%.

With this information I have now projected Longmeadow property taxes for the next 10 years (--> 2020).  These projections include both the allowable 2.5% increase and the financing costs for the new high school.   There are no additional capital projects (e.g., new DPW facility) or operational overrides included with these projections.

Click chart to enlarge

For the average property owner (assessment = $351K), taxes will increase from $6,584 (FY2012) --> $8,824- an increase of 37.5%.  It should be noted that 27.1% of this increase is related to the 2.5% annual increase that is allowed by law without an override.

Individual property owners can take the projected mil rates ($/$1000) + their current assessed values (see Vision Appraisal Database) to estimate their future taxes.

The official FY2012 mil rate will be established in December so the first steps of the LHS financing impact will not be observed until the 3Q (due Feb 1, 2012) and 4Q (due May 1, 2012) tax bills are issued.

It should be noted that these projected numbers are not official and are subject to change as the specifics of the actual school project bond issuance are finalized.