USA > Massachusetts > Essex County > Saugus > Town annual report of Saugus 1931 > Part 13
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The bulk of the revenue which is raised upon our communities comes from the tax on real estate. Taxes have always been levied and collected by governments from the owners of land and buildings as a right of sovereignty.
These are supposed to be levied upon an advalorem or real value base and are still so laid although the courts have never agreed upon the methods to be used in determining this real value. This will have no place in my paper beyond my saying that one of two terms, meets in most cases the necessity of
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ANNUAL. TOWN MEETING.
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interpretation, one, "the fair market value at open sale," the other "a sale between a willing seller and a willing buyer."
The methods used heretofore in determining this real value have been many and varied, ranging from some sale of compar- able property, without entering into the conditions which surround it, through the various stages of judgment by individuals and boards, to elaborate systems designed to fix values by arbitrary rules and formulae. These latter have appeared more or less academic and have been "yes yessed" by the tax assessor and the economist as being perfectly all right, but, not necessary in everyday practice.
The greatest necessity has arisen during the past few years for shaking out the elaborateness from these systems and applying more practical scientific effort in arriving at the true value. This necessity has been brought about by the never ceasing increases in municipal, county and state expenditures.
This has made the dear public, tax minded, at times to an ugly degree.
Increasing tax rates have come to a point where taxes on real property, hurt. The public itself has developed an insatiable appetite for spending and we can see no possibility for decreases in expenditures, for certainly neither labor nor materials give any evidence of reduction in costs.
Now as to the second purpose; I refer to that of equalizing values. With the public tax minded to the degree of which I have spoken, this problem of equalization is of much greater importance than that of establishing a true value ; yet it now is possible to obtain both much to be desired results, in but one operation, as we all realize assessment in the past, has been a hit or miss proposition. All values reconciled to one year were never considered, office records were rarely complete or even correct. Values continued, have been made up by different men at different times. This has not caused much trouble as the tax payer was not tax minded. The tax levy when finally made up was and is a combination of opinions based on sales, asking prices, mortgages and all information that could be obtained from other sources. Difference in material and labor
11
162
TOWN DOCUMENTS.
[Dec. 31
prices are almost entirely forgotten and identical houses vary hundreds of dollars in valuations.
Under the system of "Modernization of Real Estate Valua- tions" of which I have talked before the "Massachusetts" and "Rhode Island Associations" equalization appraisal will remedy the basic ills of all assessments. The net results are to the overwhelming advantage to the community and the burden falls where it belongs, resulting in satisfaction to all, except the tax dodger and the owner who has been under assessed in the past. The result of the application of this method is to give every citizen and tax payer an even break, tax all alike, as of one date, based on a uniform method of valuation-using the same yard- stick for all, treating everyone exactly alike.
This done you have increased the respect of the individual for government, properly distributed the burden and placed one of the most important offices in your city and town government on a basis where it should have been placed years ago.
The first consideration should be the possession of accurate tax maps, for such maps are the foundation of the work of land revaluation. The second part of the work covers the valuation of the land and the third part the valuation of buildings and land improvements. Dealing first with maps; the work of prepa- ration may take aný one of several forms. Modern methods, where no present maps, or only those of a fragmentary nature exist, counsel the use of the aerial map. In the absence of any considerable portion of the area the aerial method is by far the cheapest and quickest. It has the additional advantage of being available for study in connection with zoning, city planning, traffic study, etc. When considerable data is already at hand I should urge the use of the drafted map. It is cheaper and just as efficient for revaluation purposes. The important thing is that adequate maps be in existence at the start of the revaluation showing the boundary lines of all property belongings.
The second part of the work is the revaluation of the land. There are a number of recognized systems of land valuation. Among them being the Hoffman-Somers, Buffalo, Cleveland, Cambridge and many others, all of them upon the theory that the first foot back of the street line has the greatest value and that each receding foot is worth slightly less than the one in
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ANNUAL TOWN MEETING.
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front of it. The original rule was based upon an adoption of the language of Judge Hoffman in New York in a decision handed down in 1866 in which he stated that two-thirds of the total value of a lot 100 feet deep would be in the first 50 feet back of the street. Elaborate mathematical calculations have been made to show the variations for each foot from one foot to 100 feet and the value for each foot over 100 feet up to 600 feet. The judicious application of the best of these tables is the accepted basis to build for land valuations having for a unit foot value-the value of one times 100 in depth at right angles to the street or by applying against our square foot areas the per- centage factor as to depth influence and obtain the co-efficient in area, to be multiplied by the street unit of value in dollars or cents. The difficulty of obtaining the proper unit of value for land valuation can be met by community expression of opinion on relative percentages of values of streets and parts of streets. The best way of doing this is to obtain a representative committee of citizens which should contain business men, bankers, real estate men, local engineers and the assessors, who know their community and as property owners are familiar with local conditions and values.
The entire object of this committee's work should be to secure as far as possible the accurate reflection of community thought as to the comparative value of all the streets and highways in the city or town and to determine then, the proper unit price to apply to them.
Differences of opinion will of course arise, but the final determination will represent a splendid cross section of proper unit prices.
Now this, representing only the judgment of men, cannot be exact, neither can that work be reduced to an exact science, but the rest of the work is a mathematical proposition and with exact formulae and tables the lot values are bound to be accur- ate from an equalization standpoint when computed by the engineers. I will not enter into further detail as to corner in- duences or combination of street units or alley, railroad, water- way, plottage or other influences which might reflect additional value upon their respective lots. I will say however that land s depreciated not unlike building due to topographical irregu- arities and natural barriers. The most vital part of this work
10.4
TOWN DOCUMENTS.
[Dec. 31
now arises and it is, the correct valuation of the improvements on the land. Buildings represent, let us say, 75 per cent of the value of real estate. We must entirely disregard the original cost of these, for the difference in costs of labor and materials due chietly to the fluctuations of the dollar make it necessary to use as a yardstick to the reproduction cost of structures, at a date as near the present as may be required for taxation purposes.
The first work to be done is to obtain delivered prices on all kinds of materials to be used on structures of every kind, the wage of every artisan and laborer and the expectancy of the amount of work results to be obtained. This last can be obtained by conferences with contractors, builders and in many instances from the banks from their experience in construction loans. Elaborate price charts designed to make uniform the valuation of each dwelling, mercantile, industrial and other types of buildings are prepared and classified, the dwelling chart alone makes five classifications and these five are divided into first, second and third, making 15 different unit prices to take in square foot areas ranging from 600 to 5,000 in hundreds, to the 2,000 mark and then in 500, up to the 5,000 mark.
The engineers now go into the field, measure up and describe on a card which shows the class of the building; one or two family house, bungalow, garage, block, oil station, church, apartment hotel, etc., kind of foundation, exterior walls, base- ment construction, interior finish, roofing, heating, plumbing, lighting and all other descriptive items entering into the con- struction. The building is sketched to a convenient scale show- ing all projections, porches and a number of stories in each portion. They are all computed on a square foot (or cubic foot if required) basis for the different parts of the building. These cards are then taken into the field by the valuation engineers who apply the unit price based upon the chart previously re- ferred to. This is the new reproductive or replacement cost and the depreciation factors are applied, first, the physical factor which can be briefly set down as "age" first and "condition" second-and secondly the functional factor which can be set down as "type" first and "location" second.
In considering the physical depreciation of a structure, while the age of the building is relatively important, upkeep and re-
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ANNUAL TOWN MEETING.
1931]
pair play the most important part in our deductions ; physical depreciation is the reduction of value on an estimated life of the building to absorb the shrinkage of age, giving due consideration to condition, having also in mind the use of faulty materials and poor labor.
In considering the phase of functional depreciation we must consider factors that would tend to lesson the values of a build- ing more than is shown by the physical depreciation. It is im- portant that we should remember that this factor of deprecia- tion is economic and not physical. By "type" we cover obso- lescence, which occurs when fashions change, usuitability, high ceilings, peculiar styles, old plumbing, heating, freak interior, old houses, too large for the ordinary family today; factories, old business blocks and so on.
By location we consider conditions which occur when neigh - borhood influences enter. When a new or comperatively new building is erected in the wrong place or section, when an old two or three story building occupies land of high value in a more important or business section and so on.
The sum of these two percentages of depreciation are now deducted from the reproduction cost and we should have as near as it is possible, the real equalization of all building values.
I have gone into greater detail on the mechanics of building inspection, measuring, pricing and depreciation that I have on land for I assume the matter of scientific land valuation has been before you to a greater extent before.
A very important matter that I should consider, would hardly come within the scope of my paper, that I would stress upon you all, is the importance of an up-to-date card system, being installed in every assessing department in your state. From what I have seen of records this is a crying need, particularly for future use as it will be difficult to replace the past ; in saying this I have no reference to New Hampshire for I have never been in an assessor's office in your state. This cost would be little, the advantages would be great.
In closing I want to say that in reading this paper to the Assessors of New Hampshire I have not thought it necessary to
TOWN DOCUMENTS.
[Dec. 31
say that first and foremost must be the understanding that any work of any nature done by anyone outside of your jurisdiction should be done as advisor to and with you. I have been an assessor for 21 years and am jealous of the assessor's rights. What I say must be accepted as an earnest effort to improve the work and standing of the individual assessor and help your community and your state by the best method obtainable to give all your people an honest even break in the equitable distribu- tion of their tax burden.
ART. 70-Request of the Board of Selectmen that the town adopt the provisions of Chapter 458 of the Acts of 1923.
This is relative to the pensioning of Forman Peter Haigh of the Public Works Department.
The Finance Committee is not unappreciative of the fact that Mr. Haigh has worked for the town for many years. It calls the attention of the Limited Town Meeting, however, to the law which the Selectmen would have the town adopt :
An Act Relative to the Pensions of Foremen, Inspectors, Mechanics, Draw Tenders, Assistant Draw Tenders and Store- keepers in the Employ of Certain Cities and Towns.
Section 1. Paragraph (b) of section seventy-seven of chapter thirty-two of the General Laws is hereby amended by striking out, in the twenty-first, twenty-second and twenty-third lines, the words "or has accepted chapter one hundred and seventy- nine of the acts of nineteen hundred and twenty," and by strik- ing out, in the twenty-sixth line, the word "four" and inserting in place thereof the word :- five,-so that said paragraph will read as follows :- (b) In any such city or town which accepts this paragraph by the city council or by the voters at a town meeting, "laborer" shall include foremen, inspectors, mechanics, draw tenders, assistant draw tenders and storekeepers, but no such person shall receive a pension of more than five hundred dollars a year.
Section 2. In any city or town which has accepted chapter one hundred and seventy-nine of the acts of nineteen hundred and twenty or which shall have accepted paragraph (b) of section seventy-seven of chapter thirty-two of the General Laws
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ANNUAL TOWN MEETING.
1931]
prior to the time this act takes effect, the maximum amount of pension permitted thereunder to a foreman, inspector, mechanic, draw tender, assistant draw tender or storekeeper shall, not- withstanding the passage of this act, be four hundred dollars a year, unless said city or town thereafter accepts said paragraph (b).
This law would undoubtedly prove costly to the town in the future. Non-contributory pensions should, the Finance Com- mittee believes, be discouraged. The General Court has refused the town the right to pension Mr. Haight in an amount in ex- cess of that contained in this chapter, and the Finance Com- mittee believes that this law should not be placed on the books of the town. This is no year to sanction pensions.
For the past 10 years the town has paid a pension to the former chief of police. This aggregates over $12,000 during his period.
The Finance Committee unanimously recommends that this article be indefinitely postponed.
ART. 84-Request of Edward Gibbs, Jr., and others for the appointment of a committee to investigate the advisability of the town supplying illuminating gas and electricity to the people of the town.
The Finance Committee finds that Mr. Gibbs did not sponsor the article and is opposed to it. The committee sees no necess- ity for the appointment of such a committee. The creation of needless committees should be discouraged by the town.
The Finance Committee, therefore, recommends that Article 84 be indefinitely postponed.
Special Warrant
The Finance Committee herewith submits its report on the warrant for the special Town Meeting opening Wednesay even- ing, March II, at 7.45 o'clock.
ART. 2 .- Request of the Board of Selectmen for an appro- priation or bond issue of $23,000, $6,000 of which is to be ex- pended on the elimination of cement water mains on Main street,
168
TOWN DOCUMENTS.
[Dec. 31
and $17,000 for laying and relaying the water main on Baker street, Central street, and into the Kenwood section.
This is a measure designed by the Board of Selectmen to relieve the unemployment situation.
A special Town Meeting in December appropriated $25,000, by bond issue, for such unemployment relief. The Finance Committee believes that when this is paid up that the total cost will be approximately $30,000.
Superintendent Alfred L. Maggi of the Public Works Depart- ment estimates that the town is receiving in this type of work only 33 cents value for every dollar expended.
The cost to the town, therefore, will be $30,000 for $10,000 worth of actual water main installation.
During the winter this work was undoubtedly essential. Spring, however, is approaching. As soon as the present annual meeting adjourns there will be available sums of money for street construction and the installation and maintenance of water mains.
Town Accountant Edward Gibbs, Jr., estimates that the present funds will last until April. Relaying the water mains on Main street preparatory to the construction of the new road will consume three additional weeks. This will bring the pro- gram into the last of April. By this time the Town Meeting should be adjourned and money will be available to continue the work if necessary.
The Finance Committee believes that there is considerable merit to the proposal to relieve the water situation in the Ken- wood section. To expend $17,000 for this work, however, during the winter months would, the majority of the committee believes, be a waste on the part of the town. The Finance Committee is not unmindful of the unemployment situation but it also must be taken into consideration that the tax payers of the town are entitled to fair treatment. To expend money when one-third or even one-half value is received is poor muni- cipal business.
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ANNUAL TOWN MEETING.
1931]
The Finance Committee unanimously recommends that $6,000 be appropriated for the replacement of cement mains on Main street. The committee is opposed to any further bond issues.
The majority of the Finance Committee recommends that the remainder of the article, having reference to a request for $17,000 for the purpose of laying mains in Central street, be in- definitely postponed.
On this question Mr. Edward Gibbs, Jr., was recorded in the minority.
Tabulated result of the action of the Finance Committee on the General Budget follows :
170
ACTION OF THE FINANCE COMMITTEE ON THE GENERAL BUDGET
(jeneral Government
Expended in 1929
Expended in 1930
Asked for in 1931 Recommended
Moderator .
.
$50 00
Finance Committee
$369 00
$470 17
$735 00
· 735 00
Planning Board
153 39
167 29
250 00
200 00
Selectmen's Department
2,677 23
2,520 46
2,565 00
3,360 00
Accountant's Department
1,809 38
2,130 79
2,060 00
2,060 00
Treasurer's Department .
2,629 07
2,710 93
2,917 50
2,917 50
Collector's Department
4,700 00
5,099 30
5,500 00
5,500 00
Tax Title Expenses
1,456 68
2,921 06
2,000 00
2,000 00
Assessors' Department
7,472 76
8,099 00
9,605 00
7,605 00
Registration Town Notes
28 00
61 00
70 00
70 00
Law Department
1,535 00
3,052 94
750 00
750 00
Town Clerk Department
779 13
851 48
900 00
900 00
Election and Registration
3,222 61
4,465 53
2,244 00
2,000 00
Town Hall Account
4,161 58
3,997 14
4,280 00
3,968 00
Public Works Department
5,811 84
6,432 71
8,054 00
7,354 00
Board of Appeals
.
200 00
200 00
Engineering Department
3,800 00
2,280 00
.
.
.
.
.
.
.
.
TOWN DOCUMENTS.
[Dec. 31
Protection of Persons and Property
Police Department .
26,392 90 50 00
30,568 30 100 00
34,058 30 100 00
32,563 30
Town Constable .
100 00
Firemen's Salaries
18,542 50
21,002 50
22,967 00
22,557 50
Chief's Salary .
2,500 00
2,500 00
2,500 00
2,500 00
Supt. of Fire Alarm
250 00
250 00
250 00
400 00
Fire Department Expenses
7,846 61
8,880 48
13,761 00
7,850 00
Hydrant Service ..
500 00
500 00
500 00
500 00
Forest Fire Warden
360 19
1,119 55
2,225 00
350 00
Inspector of Buildings
972 15
1,017 75
1,355 00
1,305 00
Sealer of Weights and Measures
885 00
880 55
1,325 00
1,110 00
Gypsy Moth Department
4,997 19
4,999 33
5,000 00
5,000 00
Tree Warden Department
999 85
1,349 81
1,200 00
1,200 00
Education and Libraries
Schools .
196,687 67
206,260 06
220,942 00
215,078 00
School House Repairs
7,500 00
8,828 56
10,915 00
8,605 00
Public Library . .
6,500 00
7,434 56
8,110 00
7,580 00
Board of Public Welfare
23,105 32
33,155 98
90,430 00
40,727 00
Infirmary .
10,968 73
10,488 29
10,146 00
8,691 00
State Aid
1,296 00
1,227 00
1,300 00
1,300 00
Soldiers' Relief
8,474 28
15,328 71
12,000 00
12,000 00
Soldiers' Burial
.
200 00
97 00
200 00
200 00
1931]
ANNUAL TOWN MEETING.
I71
.
.
.
.
Highways, Fences and Bridges
Expended in 1939
Expended in 1930
Asked for in 1931
Highways, Fences, Bridges
19,972 55
19.935 10
15,000 00
15,000 00
Sidewalks and Curbing .
5,990 70
14,278 61
15,000 00
12,000 00
Snow and Ice .
4,670 58
6,026 78
6,000 00
5,000 00
Street Lighting
11,527 0.4
11,700 00
1.4,000 CO
14,000 00
Surface Drainage Work
20,000 00
Street Work Construction
20,000 00
Cliftondale Square .
6,500 00
3.500 00
Street Cleaning
5,000 00
1,000 CO
Cleaning Catch Basins
2,500 00
500 00
Surface Treatment of Roads .
6,500 00
4,000 00
Tar Sidewalk and Repairs .
1,000 00
750 00
Street Signs .
1,000 00
300 00
Fences
1,000 00
500 00
Care of Parks
300 00
Vacations, Holidays, Pensions
1,000 00
Patching Street
1,500 00
Concrete Mixer
1,200 00
1,200 00
Gasoline Roller
4,000 00
. . .
Changing Truck Tires
1,500 00
1,500 00
.
.
.
.
.
·
·
.
·
.
.
.
.
TOWN DOCUMENTS.
[Dec. 31
Enterprises and Cemeteries
Water Purchase
17,923 12
18,940 67
22,000 00
20,000 00
Water Maintenance
23,516 40
23,554 16
23,504 66
23,500 00
Water Extension .
5,000 00
6,050 42
10,000 00
4,000 00
Replacing Water Mains
4,882 50
1,397 62
6,000 00
Water Meters
2,479 04
2,993 79
2,000 00
1,500 00
Cemetery
6,306 59
6,600 00
7,665 00
7,665 00
Legion Building
175 00
. . .
Installing Gates
1,000 00
1,000 00
Air Compressor
3,600 00
3,600 00
One and One-half Ton Truck
2,200 00
.
.
Ford for Meter Work .
550 00
550 00
Health and Sanitation
Health Department .
3,666 91
3,924 73
5,120 00
5,030 00
Vital Statistics .
96 50
91 25
100 00
100 00
Inspector of Plumbing
1,200 00
1,456 02
1,500 00
1,500 00
Inspector of Cattle
679 76
685 39
785 00
785 00
Inspector of Milk
300 00
300 00
300 00
300 00
Collection of Ashes
5,200 00
4,900 00
4,900 00
4,900 00
Collection of Garbage
2,100 00
3,000 00
3,000 00
3,000 00
.
·
.
.
1931]
ANNUAL TOWN MEETING.
173
·
[Dec. 31
TOWN DOCUMENTS.
174
Recreation and Unclassified
Expended in 1929
Expended in 1930
Asked for in 1931 Recommended
Memorial Day .
400 00
469 56
400 00
400 00
Town Reports
1,499 20
1,604 70
2,000 00
1,800 00
Insurance .
5,639 24
5,427 97
6,322 03
6,322 03
Playground
3,497 75
3,732 28
3,650 00
3,650 00
Reserve Fund
4,000 00
6,000 00
20,000 00
20,000 00
Trade Schools .
1,376 78
1,474 53
2,000 00
1,500 00
Interest and Maturing Debt
Interest on Temporary Loans
12,472 08
6,279 48
11,000 00
11,000 00
Interest on School Loans
6,413 75
5,736 25
4,999 00
4,999 00
Interest on Water Loans
1,348 75
1,221 25
2,073 75
2,073 75
Schoolhouse Loan Bonds
16,500 00
16,500 00
16,500 00
16,500 00
Water Bonds
3,000 00
8,000 00
8,000 00
Fire Station Bonds
High School Bonds
.
.
.
·
Total
$514,493 20 $576,248 79 $779,616 51 $624,491 08
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ANNUAL TOWN MEETING.
1931]
The following section from Chapter 55 of the General Laws of 1928, creating the Limited Town Meeting, gives the authority and powers under which the Finance Committee operates.
SECTION 9. There shall be a Finance Committee appointed by the moderator from among the elected town meeting mem- bers, consisting of one member from each precinct, who shall serve during their respective terms as Town Meeting members, and who shall be originally appointed at the first representative Town Meeting held after this act becomes operative, and there- after as vacancies occur. To this committee shall be referred all questions pertaining to the appropriation or expenditure of money, the creation of debt, the disposition of town property and all other questions affecting the town, for the purpose of making recommendation, but this shall not be construed to pro- hibit the appointment of special committees to investigate matters pertaining to the town or to execute work authorized by it. This committee shall have the power to consult with such departments, officers, employees or committees as may have information concerning any matter under consideration, and it shall be the duty of all departments, officers, employees or committees to furnish such information as they possess that may be required by said committee. It also shall have the power to examine, in connection with any subject under inves- tigation or consideration, all books, vouchers, papers and all other instruments in the custody or possession of any officer, employee or agent of the town.
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