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The Community Preservation Act in Concord
What is the Community Preservation Act? Established in 2000 under M.G.L. c. 44B, the Community Preservation Act (CPA) allows Massachusetts cities and towns to raise monies through a surcharge of up to 3% of the tax levy on real property. These funds can be used to acquire, create and preserve open space; acquire and preserve historic resources; create, preserve and support community housing; and acquire and preserve land for recreational use. A minimum of 10% of the revenues must be appropriated or reserved each year for each of the three interests of open space, community housing and historic preservation. The Act also provides a significant State matching fund of more than $30 million annually. In addition to Concord, over 100 other cities and towns across the state have adopted the CPA to date.
How is the CPA used in Concord? At the 2004 Annual Town Meeting and subsequently at the polls, Concord residents voted to adopt the CPA with a 1.5% surcharge on all real estate property tax bills. There are two exemptions, however, to this surcharge:
1) The first $100,000 of taxable value of residential real property
2) Residential property owned and occupied by any person who qualifies for moderate- or low-income housing (earning less than 80% of Area Median Income), or low or moderate-income senior housing (earning less than 100% of Area Median Income and are 60 years of age or older).
The CPA mandates that each fiscal year Concord must spend, or set aside for later spending, at least 10% of the annual revenues in the Town of Concord Community Preservation Fund for each of the three CPA interests: community housing, historic resources, and open space. Beyond these required allocations, Concord Town Meeting decides, based on the CPC’s recommendations, how much of the remaining 70% of the funds should be spent on the three purposes identified above or for recreation. The spending mix for the remaining 70% of the Fund can be modified each year, and any monies not appropriated remain in the Fund for future distribution.
Where do the CPA funds come from? The funds available for spending each fiscal year are a combination of three sources:
1) Projected Fund Revenues for the Upcoming Fiscal Year – Projected fund revenues are made up of the funds collected from the 1.5% surcharge on all real estate property tax bills and the State matching funds collected from existing surcharges on all real estate transactions at the Registry of Deeds and Land Court. These funds are termed as “projected” because the final numbers are not available until October of each year. To date, Concord has received a 100% match from these State funds which has added $2,088,011 to the Town’s CPA fund since its inception. This percentage match, though, is not guaranteed because it is based both on
the number of real estate transactions each year and the number of communities in the program. It is anticipated that the match will begin to decrease in future funding cycles as new communities pass the CPA and the real estate market fluctuates.
2) Undesignated Fund Balance – These are funds which were collected in previous years but never allocated. Where did this money come from? Usually an undesignated fund balance represents either unanticipated additional interest received on CPA fund accounts or the receipt of more State matching funds or surcharge tax revenues than were originally anticipated.
3) Reserve Funds - These are funds which were approved at previous Town Meetings to be set aside for future projects in Community Housing and Open Space. At present, there is $293,138 in the Open Space Reserve Fund and $64,095 in the Community Housing Reserve Fund.
What does the surcharge really mean to Concord taxpayers?
The Assessor’s Department has calculated that in FY07, the median home in Concord had an assessed value of $712,000. After subtracting the CPA exemption for the first $100,000 of the taxable value of a residential property, and multiplying this number by the FY07 tax rate of $10.23 per $1000 of value, the median tax amount is $6,462.72. The 1.5% surcharge, then, for the median homeowner in Concord is $96.94.
Concord’s Community Preservation Committee
Following Concord's 2004 adoption of the Community Preservation Act, the Board of Selectmen established the Community Preservation Committee (CPC). As specified in the enabling legislation, the Committee is charged with the task of "studying the needs, possibilities, and resources of the town regarding community preservation." The areas of study are open space, community housing, historic preservation and recreation. The Committee is required to consult with town boards and commissions to ascertain the needs of the community and hold at least one public informational meeting per year. Finally, the Committee is to solicit applications for CPA projects and after review present funding recommendations to the citizens at Concord's Town Meeting.
The first task of the Committee was to write a Plan, which was completed in 2005 and has been reviewed and updated each subsequent summer. It includes the following sections:1) The CPA in Concord; 2) How CPA Funds can be Used; 3) Needs Assessments for Community Housing, Historic Preservation, Open Space, and Recreation; 4) General Selection Criteria; 5) Application Process; 6) Guidelines for Submission; 7) Application Requirements; 8) Application; 9) Funding Process and ten Appendices. The 2008 Community Preservation Plan is available on this webpage, at the Town libraries, and in the Planning Department at 141 Keyes Road.
In writing the Plan, the Committee received input from the Town's boards, commissions and officials. They also utilized the most recent Comprehensive Long Range Plan, the Open Space and Recreation Plan and the Playground Study. The Committee continues to update the Plan each year to meet the changing needs of the community.
Community Preservation Committee 2008 Meeting Schedule (revised 9/12/08) |
Date |
Time |
Location |
Thursday, July 31 Information Session for Potential New Applicants |
7:30 p.m. |
Harvey Wheeler Community Center Auditorium 1276 Main Street |
Tuesday, August 12 |
7:00 p.m. |
2nd Floor Conference Room, 141 Keyes Road |
Thursday, September 11 Information Session and Public Hearing |
7:30 p.m. |
Harvey Wheeler Community Center Auditorium 1276 Main Street |
Wednesday, September 24 |
7:30 p.m. |
1st Floor Conference Room, 141 Keyes Road |
Tuesday, October 7 |
8:00 a.m. |
2nd Floor Conference Room, 141 Keyes Road |
Wednesday, October 22 |
7:30 p.m. |
1st Floor Conference Room, 141 Keyes Road |
Thursday, November 6 |
8:00 a.m. |
1st Floor Conference Room, 141 Keyes Road |
Monday, November 13
|
7:30 p.m. |
2nd Floor Conference Room, 141 Keyes Road |
Tuesday, November 18 Public Hearing |
7:30 p.m. |
Alcott School Auditorium, 93 Laurel Street |
Monday, December 1 |
7:30 p.m. |
1st Floor Conference Room, 141 Keyes Road |
Thursday, December 11 |
7:30 p.m. |
2nd Floor Conference Room, 141 Keyes Road |
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