Will snow removal costs increase my property taxes?
What happens when snow removal costs exceed budget? Who pays? When?
In simple terms, any snow removal costs beyond those budgeted for the current year have to be approved locally, and then the excess costs, net of any reimbursements, are added to the expenses in the following year’s budget.
In Marblehead, the Finance Committee has approved an extra $715,000 in snow removal costs for this winter, to be paid from the General Fund. Again this figure is before any reimbursements that may be available. To put that figure into perspective, the total budget for Marblehead for FY2016 is over $70 million.
According to Town Administrator John McGinn, the possibility of excess snow removal costs is something the town plans for and will not cause any need for a general override in FY2016.
This is the relevant part of the Massachusetts General Laws:
Ch 44 Section 31D. Any city or town may incur liability and make expenditures in any fiscal year in excess of available appropriations for snow and ice removal, provided that such expenditures are approved by the town manager and the finance or advisory committee in a town having a town manager, by the selectmen and the finance or advisory committee in any other town, by the city manager and the city council in a city having a city manager or by the mayor and city council in any other city; provided, however, that the appropriation for such purposes in said fiscal year equaled or exceeded the appropriation for said purposes in the prior fiscal year. Expenditures made under authority of this section shall be certified to the board of assessors and included in the next annual tax rate.
Every city or town shall annually, not later than September fifteenth, report to the division of local services of the department of revenue the total amounts appropriated and expended, including any funding or reimbursements received from the commonwealth, for snow and ice removal in the fiscal year ending on the preceding June thirtieth.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or [email protected].
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
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