SALISBURY — Salisbury's tax rate may have gone up 70 cents this year because of the financial stress of the weakened economy, but the town can still boast the lowest average tax bill, $3,113, among its peer communities, hundreds and sometimes thousands of dollars less than others in Greater Newburyport.
After its recent three-year, townwide revaluation, Salisbury's tax rate is tied with Newbury for the lowest spot, at $9.16 per thousand of assessed value, but because home values on average are much less in Salisbury, its average tax bills are smaller too.
Still, town leaders say it's also the product of responsible budgeting.
"This underscores our commitment to keeping our tax burden modest while providing essential service, retaining funds in reserve and investing in capital improvements and infrastructure when affordable," Town Manager Neil Harrington told selectmen at their recent meeting.
But, frugality comes at a price. Salisbury residents must pay privately for some services other towns offer residents, such as curbside trash pick up. In addition, Salisbury has put on hold things it can't afford. In past elections, its taxpayers more often than not have failed to approve Proposition 21รขÑ2 overrides that would raise their taxes to fund schools and municipal services.
The overall economic picture is far from rosy for any community during the current economic cycle. Even for Salisbury, with the overall devaluation of real estate values, decreasing town revenues and almost certain cuts coming in state aid, struggling to control or cut costs is getting harder. And forecasters aren't predicting things will change for the better soon.
To combat the recession, Harrington and Salisbury Finance Director Andrew Gould are taking steps to stay ahead of the curve by analyzing and projecting future revenues and expenditures in hopes of developing strategies to withstand slim months or even years ahead. They will discuss a multiyear forecast with the town's financial advisory committee — the Warrant Advisory Committee — at an upcoming meeting in February. The hope is to adjust expectations and take corrective action over those issues the town can control.
This type of planning, as well as a less-is-more mentality when it comes to town services, is among the reasons Salisbury's taxpayers have a lower tax burden than their peers. Also important to the town is its Economic Development and Planning Office, which has been successful in finding and obtaining grant money for many needed projects, Harrington said.
A chart coordinated by the town of Middleton's assessor of 32 of the 34 communities in Essex County (Saugus and Lawrence were not included), shows every reporting community is posting an increase in property taxes this year. Decreasing property values for almost all properties except those on the oceanfront have driven down the value of the average single-family home in every community reporting except for Essex and Wenham.
Salisbury's tax rate is the fourth-lowest tax rate among the 32 communities on the chart. Those that are lower — Manchester, Marblehead, Nahant and Rockport — have pricey real estate to offset it and much higher average tax bills. But even in these four towns, the value of single-family homes decreased from 4 to 8 percent.
Rising tax rates and tax bills are the direct result of what Gould calls "the worst real estate market in the past 30 years," a product of the recession and worldwide credit crisis.
Talking taxes
Community'09 home value% Change09 Tax Bill 09Change
Salisbury$339,888-4.30$3,113+$108
Amesbury$332,152-3.57$5,490 +$461
Georgetown$422,140-4.67$4,212 +$94.65
Groveland$367,264-7.85$4,029 -$8.22
Merrimac$363,432-7.28$4,310 +$81.17
Newbury$458,826-4.93$4,203 +$66.66
Newburyport $468,600-3.78 $5,122 +$188.63
Rowley$408,572-4.16 $4,633 +$207.95
West Newbury$514,340 -3.88 $6,213 +$144.86
Note: Home values and tax bills are averages.
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