Thibeault: Belmont needs growth management

Suggests task force work on tax challenges

Economist Russell Thibeault of Applied Economic Research of Laconia told the Planning Board last night that this small town’s property tax rate is $2 higher than the state’s average, which makes the tax bill of an average $200,000 homeowner about $400 higher than his neighbor in another community.

But Thibeault said the town could turn things around if it was willing to institute some growth controls. And he suggested town leaders consider forming a tax force to look into the issue.

“What I’m trying to say here is that there is a link between the things we all really care about, which is the tax rate, and the kind of development controls you have,” he said. “The kinds of things you’re doing and the pace of development you have in town (impacts your tax bill.)”

Thibeault, who was presenting the last two parts of a housing study the town hired his firm to complete, told the board members gathered in the Corner Meeting House that Belmont has the highest tax rate in Belknap County and is projected by state officials to be second fastest growing among four local towns in the next few decades. (First is Gilford, and behind Belmont is Alton and Meredith.)

However he said he thought this town would turn out to be the fastest growing simply because it has more buildable land available than Gilford.

Thibeault noted that the high tax rate, which has been the cause of some heated conversations ever since new assessments and tax bills were mailed out in recent weeks, is “a reflection of all the things the town does. It’s a reflection of the investments the town chooses to make. It’s the cost of running the town.”

Thibeault suggested the planners consider some growth development ideas — like a Growth Management Ordinance (GMO) that would limit the number of residential housing permits it issues each year, Impact Fees that would charge developers for new home construction, or other options such as large lot zoning.

“Or, you can continue your current policies with the possible impact of higher taxes and-or reduced services to existing residents,” he said. “Unfortunately I think that’s what it’s come down to.”

The theme of Thibeault’s presentation was based on information he’s shared with town officials at earlier presentations of his housing study: Belmont has a higher percentage of low and moderate-income housing than most other Lakes Region communities and is therefore without a sufficient amount of high-end housing that would help carry the cost of town services by paying higher property tax bills.

“That link between how high your taxes are and the kind of development your getting, I don’t think most people make that link,” he said. “But once you’ve allowed the house to go up you’ve got to service it. You’ve got to provide police protection, you’ve got to respond to a fire, you’ve got to educate their kids... So the time to think about it is before it gets here. This is the type of things Belmont needs to think about.”

Thibeault referred to the fact that a GMO was narrowly defeated at Town Meeting several years ago and the Planning Board rejected the idea of instituting Impact Fees the following year.

So to help the town “move the ball” he suggested forming a Tax Base Enhancement Task Force made up of citizens, town staff members, selectmen, developers, members of the business community, advocates and opponents to growth control measures, and members of the Planning Board. The group would work intensely for six months and come up with a three-year plan for action that would including suggested changes to zoning ordinances and/or other growth/tax-related initiatives.

A brief report summarizing the group’s finding would be mailed to all voters and then there would be public briefings to communicate the results and recommendations to residents.

Finally town leaders would present the suggestions in appropriate forms to the taxpayers at Town Meeting.

Ken Knowlton, the chairman of the Conservation Commission, asked Thibeault if he would suggest representatives of the Shaker School District be involved with the task force. He noted that school board members have recently begun to discuss publicly for the first time the need for some growth controls because the local schools are very close to being at their capacity.

Thibeault said he should have included the district on his list. In fact, he said the biggest reason most towns institute growth controls is to limit the rapidity of growth in their schools.

The board took no immediate action on Thibeault’s suggestion but several members expressed enthusiasm for the task force idea.