Grand List declines marginally; Freda still upbeat
Posted on:
Tuesday, February 1, 2011 - 1:45pm
On the Oct 1, 2010 Grand List, North Haven’s total taxable amount of $2.827 billion represented a 0.28 percent decrease from 2009’s figure of $2.835 billion.
While real estate and motor vehicle numbers actually increased, a dip in personal property, fueled by new state exemption rules, led to the reduction, according to town assessor Gary Johns.
A grand list catalogues all taxable property in town. From this list, municipal leaders can approximate revenue which North Haven would receive from future taxes, providing a basis for a new fiscal year budget and mill rate considerations.
In 2010, amounts of taxable real estate in North Haven totaled $2.48 billion, up from $2.44 billion in 2009. Motor vehicles also jumped, representing $190 million in 2010 after 2009 figures tallied $179 million. “The growth in motor vehicles is nice,” Johns said. “It was probably the result of the improving economy.”
However, the entirety of taxable personal property in North Haven went down by 9.9 percent. On the 2009 Grand List, personal property was $171 million, which in 2010 fell to $154 million.
Personal property figures mostly measure factory equipment and other items utilized by local businesses in manufacturing. “We had the loss of a couple businesses, like Quebecor, partially leaving town,” Johns said. “But the primary cause was an increase in exemptions for personal property.”
“Some real estate, motor vehicles and personal properties are exempt from taxation,” he added. “The state will partially refund us for the loss of revenue.”
Total exemptions in 2010, including personal property, real estate and motor vehicles, equaled $125 million, a 14 percent increase over the $107 million in 2009. Personal property exemptions in 2010 came to $109 million, up 18 percent from $92 million in 2009.
Last year, North Haven focused town audits on local businesses’ personal properties, according to Michael Freda, identifying additional machinery. “The amount of personal property in town grew,” he said. “The irony is that the audits also increased the number of exemptions.”
Recently, Connecticut leaders increased the rate of exemptions on older personal property from 80 percent of value to 100 percent of value, according to Freda. “That’s why the numbers are down,” he said.
Such exemption rate alterations on older equipment came after Freda and other leaders within Connecticut have called for state officials to foster a more pro-business environment. “I’ve been to Hartford many times, and I keep telling them, ‘You’ve got to be more business-friendly,’” Freda said. “I think the exemptions are part of that.”
Moderate Grand List decline in 2010 comes after a significant loss last year. The 2009 Grand List represented a 1.52 percent decrease from 2008 numbers, with a $40 million-plus dip in total taxable property. “I see progress here even though it’s a loss,” Freda said. “Last year, the Grand List was off $1.46 million in taxable revenue. This year it’s off approximately $48,000.”
“I try to look at things in a positive, upbeat fashion,” he added. “I’m very optimistic.”
According to Freda, economic development is imperative for North Haven’s financial advancement. “The economic development foundation is in place to help this year and future years,” he said. “It hasn’t hit yet, but it will hit.”
“Included in that is North Haven’s medical epicenter,” he added, alluding to Yale New Haven’s new Devine Street site. “That will increase the level of property value of those buildings. Since pilot programs will be involved, I expect an incremental revenue growth, and the creation of more jobs, which will create more spending in town. This all has a synergistic affect, because more and more businesses and companies are calling me as a result of this building momentum. That’s why I’m so optimistic.”
Northern Washington Avenue, an especially blighted economic area of North Haven, remains a focus for Freda. “That’s still a big challenge,” he said. “I’m still working up there while focusing on other initiatives.”
