Special City Council 12-11-25

Governing Body: Everett City Council Meeting Type: Special Meeting Meeting Date: December 11, 2025, at 12:00 AM Attendees: Councilor Guerline Alcy Jabouin, Councilor Anthony DiPierro, Councilor Holly Garcia, Councilor Wayne Matewsky, Councilor Peter Pietrantonio, Councilor Katy Rogers, Councilor Robert Van Campen, Council President Stephanie Martins.

Executive Summary: The Everett City Council convened a special meeting to address critical financial matters, primarily focusing on the city's FY2026 tax rate. Key decisions included the adoption of a minimum residential factor of 0.774312, the approval of a 25% residential homeowners tax exemption, and appropriations from various budgetary fund balances to reduce the tax levy and offset rates. Discussions highlighted the impact of these decisions on residential and commercial properties, the importance of informing residents about available exemptions, and the city's strategy for managing free cash.

Discussion:

• The item was first read at a special meeting on November 24th, and the public hearing remained open.
• Chief Assessor Ron Cohan, Director of Assessing Ben Pena, Assistant Assessor Jeff D'Angelo, and Board Member Frank Parker from the Board of Assessors, along with CFO Mr. Dimas, presented information regarding the classification hearing.
• The purpose of the classification hearing is to allow a shift in the tax burden from residential to commercial, industrial, and personal property.
• The City Council, with mayoral approval and certification by the Commissioner of Revenue, determines the percentage of the local tax levy for each property class.
• This process does not change the total tax levy but reallocates the share borne by each class.
• Approximately 30% of Massachusetts cities have split rates. If Everett chose a single rate, it would be $15.92 per thousand for FY26.
• Adopting a split rate with a maximum shift of 1.75 would reduce the residential tax burden from 76% to 58% of the tax levy and increase the Commercial, Industrial, and Personal Property (CIP) share from 24% to 42%.
• The FY26 approved budget levy is $133,950,189, compared to FY25's $117,262,518.
• The city can raise up to the levy limit of $191,551,198, leaving an excess levy capacity of nearly $58 million.
• The majority of the increase in growth in the tax base for FY26 resulted from new construction (multi-family) and various personal properties.
• The proposed tax rate with the residential exemption is $12.62 for residential properties and $25.20 for commercial properties.
• Massachusetts General Laws, Chapter 59, Section 5C, allows up to a 35% discount on the average residential value for owner-occupied residential exemptions. Everett currently has a 25% exemption.
• Councilor Matewsky inquired about increasing the residential exemption to 30% or 35%. Mr. Cohan stated that while possible, it would change all calculations and impact the printing of tax bills, potentially delaying payments. He recommended considering it for the next fiscal year.
• Councilor DiPierro agreed that further study is needed before increasing the residential exemption to understand the impact on non-owner-occupied homes.
• Councilor Pietrantonio asked about the origin of the 25% exemption and the impact of the residential exemption on single-family homes, noting an average increase of $605 from FY25 to FY26 with the exemption. He also raised concerns about tracking owner-occupancy for condos and the inability to set separate rates for non-owner-occupied units due to state law.
• Councilor Van Campen highlighted efforts to communicate residential exemption eligibility to the community through mail, social media, and communications teams. He also mentioned ongoing work on an ordinance to incentivize affordable rents in non-owner-occupied structures.
• Councilor Alcy Jabouin inquired about informing residents about the exemption and suggested sending letters to potential qualifiers. Mr. Cohan confirmed that a report identifying approximately 1,200 additional eligible residents is being finalized, and letters will be sent out in about two months. He cautioned that a large influx of applications could strain the overlay budget.
• The difference in tax rate calculations between Monday's sheet ($12.73) and today's ($12.62) was due to an error found and corrected by the state, resulting in an 11-cent reduction.
• Councilor Pietrantonio expressed concern about the 18% increase in the CIP tax burden, shifting from 24% to 42%, and its potential negative impact on local businesses.
• Councilor Matewsky asked about the senior tax exemption. Mr. Parker explained that there are personal exemptions (e.g., for seniors, veterans, blind individuals) that can be combined with the residential exemption. Senior exemptions have income and asset limits (e.g., $25,800 income for single, $40,000 assets for single). The Council has the ability to increase these limits.
• Councilor Alcy Jabouin suggested including information about all available exemptions in the letters sent to residents.

Public Comment:

• No members of the public spoke in favor or against the item.

Motions and Votes:

• Motion to close the public hearing.
  • Vote: All in favor. (Ayes have it)
• Motion to adopt a minimum residential factor of 0.774312 in setting the city's FY2026 tax rate.
  • Roll Call Vote:
    • Councilor Alcy Jabouin: Yes
    • Councilor DiPierro: Yes
    • Councilor Garcia: Yes
    • Councilor Matewsky: Yes
    • Councilor Pietrantonio: Yes
    • Councilor Rogers: Yes
    • Councilor Van Campen: Yes
    • Council President Martins: Yes
  • Outcome: 8 Yeas, 0 Nays. Motion Adopted.
• Motion to reconsider the item.
  • Roll Call Vote:
    • Councilor Alcy Jabouin: No
    • Councilor DiPierro: No
    • Councilor Garcia: No
    • Councilor Matewsky: No
    • Councilor Pietrantonio: No
    • Councilor Rogers: No
    • Councilor Van Campen: No
    • Council President Martins: No
  • Outcome: 0 Yeas, 8 Nays. Reconsideration Failed.

Discussion:

• This item was presented as an order to approve a 28% residential homeowners tax exemption. However, the subsequent vote was for 25%.

Motions and Votes:

• Motion to adopt a 25% residential homeowners tax exemption.
  • Roll Call Vote:
    • Councilor Alcy Jabouin: Yes
    • Councilor DiPierro: Yes
    • Councilor Garcia: Yes
    • Councilor Matewsky: Yes
    • Councilor Pietrantonio: Yes
    • Councilor Rogers: Yes
    • Councilor Van Campen: Yes
    • Council President Martins: Yes
  • Outcome: 8 Yeas, 0 Nays. Motion Adopted.
• Motion to reconsider the item.
  • Roll Call Vote:
    • Councilor Alcy Jabouin: No
    • Councilor DiPierro: No
    • Councilor Garcia: No
    • Councilor Matewsky: No
    • Councilor Pietrantonio: No
    • Councilor Rogers: No
    • Councilor Van Campen: No
    • Council President Martins: No
  • Outcome: 0 Yeas, 8 Nays. Reconsideration Failed.

Discussion:

• Councilor Pietrantonio inquired about the $6 million appropriation from free cash. Councilor Van Campen explained that this amount helps reduce the tax burden on taxpayers and represents a compromise between the incoming and current administrations. He noted that the city aims to gradually reduce reliance on free cash for the tax levy in future years.

Motions and Votes:

• Motion for favorable action on the appropriation of $6,000,000 from free cash.
  • Roll Call Vote:
    • Councilor Alcy Jabouin: No
    • Councilor DiPierro: Yes
    • Councilor Garcia: Yes
    • Councilor Matewsky: Yes
    • Councilor Pietrantonio: Yes
    • Councilor Rogers: Yes
    • Councilor Van Campen: Yes
    • Council President Martins: Yes
  • Outcome: 7 Yeas, 1 Nay. Appropriation Approved.
• Motion to reconsider the item.
  • Roll Call Vote:
    • Councilor Alcy Jabouin: No
    • Councilor DiPierro: No
    • Councilor Garcia: No
    • Councilor Matewsky: No
    • Councilor Pietrantonio: No
    • Councilor Rogers: No
    • Councilor Van Campen: No
    • Council President Martins: No
  • Outcome: 0 Yeas, 8 Nays. Reconsideration Failed.

Discussion:

• No questions were raised regarding this item.

Motions and Votes:

• Motion for favorable action on the appropriation of $750,000 from Water Sewer Free Cash.
  • Roll Call Vote:
    • Councilor Alcy Jabouin: No
    • Councilor DiPierro: Yes
    • Councilor Garcia: Yes
    • Councilor Matewsky: Yes
    • Councilor Pietrantonio: Yes
    • Councilor Rogers: Yes
    • Councilor Van Campen: Yes
    • Council President Martins: Yes
  • Outcome: 7 Yeas, 1 Nay. Appropriation Approved.
• Motion to reconsider the item.
  • Roll Call Vote:
    • Councilor Alcy Jabouin: No
    • Councilor DiPierro: No
    • Councilor Garcia: No
    • Councilor Matewsky: No
    • Councilor Pietrantonio: No
    • Councilor Rogers: No
    • Councilor Van Campen: No
    • Council President Martins: No
  • Outcome: 0 Yeas, 8 Nays. Reconsideration Failed.

Discussion:

• No questions were raised regarding this item.

Motions and Votes:

• Motion for favorable action on the appropriation of $250,000 from ECTV Free Cash.
  • Roll Call Vote:
    • Councilor Alcy Jabouin: No
    • Councilor DiPierro: Yes
    • Councilor Garcia: Yes
    • Councilor Matewsky: Yes
    • Councilor Pietrantonio: Yes
    • Councilor Rogers: Yes
    • Councilor Van Campen: Yes
    • Council President Martins: Yes
  • Outcome: 7 Yeas, 1 Nay. Appropriation Approved.
• Motion to reconsider the item.
  • Roll Call Vote:
    • Councilor Alcy Jabouin: No
    • Councilor DiPierro: No
    • Councilor Garcia: No
    • Councilor Matewsky: No
    • Councilor Pietrantonio: No
    • Councilor Rogers: No
    • Councilor Van Campen: No
    • Council President Martins: No
  • Outcome: 0 Yeas, 8 Nays. Reconsideration Failed.

Adjournment:

• Motion to adjourn.
  • Vote: All in favor. (Ayes have it)
  • Outcome: Meeting adjourned.