Cavendish Update 3/1/24: Property Education Taxes, News/Events

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3/1/24

1.Property Taxes/Education Tax

2. Cavendish Related News

3. Events

1. PROPERTY TAXES/EDUCATION TAX: On page 28 of the  Cavendish 2023 Annual Town Report, a table has been provided that shows a breakdown of what portion of property taxes go to the town, school and fire departments:

• Fire District 1 (Proctorsville): 67% Education; 24% Town and 9% Fire District

• Fire District 2 (Cavendish): 69% Education; 25% Town and 6% Fire District

Note that the percentages for the Fire Districts in the table on page 28 appear to be 1.9% and 2.6% respectively. This is an error, which has been confirmed by the town manager.

This information was posted to the Cavendish Facebook page, which resulted in two tracks of discussion: why doesn’t Cavendish have just one fire district and the high cost of education. Of the two issues, the high cost of education seemed to of most concern. As one Cavendish resident noted, The tax burden is already sky high and the level of education received isn't aligned. There needs to be a better use of funds, not just more funds to misuse. Others pointed out that the costs were unsustainable and many who are paying do not have school age children.

Unlike the Town Report, which is mailed out, the Green Mountain Unified School District (GMUSD) Report is available on-line, with “hard copies” available at the Town Office and the schools.

While the Town Report is straight forward, where you can compare one year’s spending to the next, the GMUSD report, provides limited information. Further, trying to figure out what the tax rate will be is challenging at best or as one person noted, “There is a course in that in the doctoral program in math at UVM.”

On page 3 of the GMUSD Report, Article 1 states, “Shall the voters of Green Mountain Unified School District approve the School Board of Directors to expend $17,440,030.00 which is the amount the school board of directors has determined to be necessary for the ensuing fiscal year? It is estimated that the proposed budget, if approved, will result in education spending of $13,079.03 per Long Term Weighted (LTW) equalized pupil.

Currently the GMUSD has 607 students broken down as follows-CTES: 76 students, though they list 80, citing that 4 homeschool students attend for special events (page 19); CAES 236 (page 22) and GMUHS 295 students (page 25).

The kicker for this year’s tax increase is the Common Lebel of Appraisal (CLA):  According to the Education Tax Calculator CLA is a method of ensuring that each town is paying its fair share of education property tax to the state’s Education Fund even if its grand list is not at 100% of fair market value. .. The Common Level of Appraisal (CLA) for every Vermont town is the primary result of the Equalization Study performed by the Department of Taxes every year. The equalization study compares the ratio of the grand list listed value to the sale price for all the arm’s length sales in the town over the prior three-year period. Note: This timeframe includes the COVID period where property sold at exceedingly high levels. The study considers sales price as the best measurement of fair market value. If grand list values are generally less than sale prices for the recent sales, the town will end up with a CLA less than one hundred percent. If grand list values are generally more than sale prices for the recent sales, the town will end up with a CLA of more than one hundred percent. Once the CLA is determined, it is used to adjust the homestead and nonhomestead education property tax rates. The CLA doesn’t change property values, only the education tax rate in a town - an example of indirect equalization.

This is an example from the state of how the CLA would be applied, Suppose the equalization study determined that a town’s CLA will be 90%, indicating that property in the town is generally listed for 90% of its fair market value, on average. If the homestead education property tax rate in the town is $1.50 (per $100 of property value) before the CLA is applied, then the actual (final) tax rate would be $1.50/.90 = $1.6667 (per $100 of property value) after the CLA is applied.

Cavendish’s CLA is 82%, which would increase taxes around $200 per $100,000 of assessed property value. We will be getting more accurate numbers and information before Tuesday’s voting and will provide a special report.

So why is the Agency for Education (AOE) asking for such a large increase in taxes? According to a report in VT Digger Health care costs, construction, special education, disappearing federal money and increased salaries are all contributing significantly to a projected $230 million increase in education spending, from $1.71 billion in fiscal year 2024 to $1.94 billion in fiscal year 2025, according to the agency’s survey. 

Using new budget information from late January and early February, the average education property tax bill is now projected to rise 19% rather than 20%, a product of about $15 million less needed to be raised by the education fund. The revised number is a result of some school districts shaving money from their budgets, as well as updated education fund data. 

Town Meeting is on Monday, March 4, 7 pm at Cavendish Town Elementary School. This is an informational meeting only, but a good place to ask questions answered and for discussion. All items are voted on by Australian ballot on March 5, 10-7 at the Proctorsville Fire Dept.

2. CAVENDISH RELATED NEWS

• Scam Alert: Dozens of Green Mountain Power customers have reported a caller threatening immediate power shut off unless they pay up right away. This is a scam! Be safe and hang up! You can call us directly to check the status of your account: 888-835-4672. Do not provide payment or personal information. Do not engage with the caller. Do not call back that number that called you. Call GMP Customer Service directly at 888-835-4672 to report the call, and any details about it, like the number it came from, the caller’s name, and what the caller said. Customers are also encouraged to report this scam to the Vermont Attorney General’s Consumer Assistance Program at 800-649-2424 (in state) or 802-656-3183 or online.

• Grafton Village Cheese opening Proctorsville location: The Grafton Village Cheese Company, established in the town in 1892, expects to launch operations alongside Vermont 103 in Proctorsville (town of Cavendish, Windsor County), on March 9. The new facility will cut, pack, and warehouse cheese made at the company's production plant in Grafton and will also include a retail outlet.

• Timber Inn Closing/Sale: With the buy-out completed, Ludlow’s Timber Inn is holding a closing sale on March 2 (Saturday) from 10-4 at the Inn. Under the state’s buyout program the town works with interested property owners and VEM to complete an application. Once a grant is awarded, the town uses grant funds to procure an appraiser and conduct other pre-purchase tasks. After closing and the purchase of the property, the town uses grant funds to procure contractors for demolition and site work. Properties acquired with a buyout grant must be maintained as public open green space once all structures have been removed or relocated. No new structures can be built on the property, but towns are free to use the space as a pocket park or to provide public river access. The town is responsible for ongoing routine maintenance of the property such as keeping the vacant land clear of debris and garbage. Funding is still available through Vermont Emergency Management (VEM) to cover 100% of the project cost for the voluntary purchase of properties that are at risk from flooding or landslides.

3. EVENTS

MARCH 4 (MONDAY): Town meeting Day Cavendish Town Elementary School or via Zoom at seven (7:00) o'clock pm

MARCH 5 (TUESDAY): Voting takes place (includes both town and school budgets) 10-7 at the Proctorsville Fire Dept. Town Office closed.

MARCH 19 (TUESDAY): Solar eclipse talk by Claudio Veliz at the Cavendish Library, 573 Main St. in Proctorsville starting at 6 pm. Safe, solar-filtered glasses will be handed out to attendees, complete with instructions on their use during the eclipse. FMI: cavendishcommunityconservation@gmail.com.

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