Vote no on Community Preservation Act

Dear Editor:

On next week’s ballot, residents of Woburn will vote on the Community Preservation Act (CPA), which if adopted, will add a one percent surcharge to all residential and commercial real estate tax bills each year. Cummings Properties does not believe that adopting CPA is in the city of Woburn’s best interest.

If our company felt that CPA was necessary to improve the quality of life in the community, we would readily support its passage. The City, however, is already successful in meeting the goals of CPA (preserving open space and historic sites, creating affordable housing, and developing outdoor recreational facilities). Recent projects include purchasing Whispering Hill Woods and a portion of Spence farm, upgrading the water system in the “South End,” building several new schools, and, most recently, securing funding to renovate and expand the library. Further, the City has the financial resources to continue completing such projects, when its elected and appointed leaders deem them worthwhile, without assessing another annual tax on its residents and businesses.

It is understandable if some readers interpret Cummings Properties’ opinion about CPA as a self-serving attempt to save money. I offer assurances, however, that this is not a case of a business trying to avoid investing in its home community. Because the Cummings organization is committed to helping maintain a strong local community, it has voluntarily and gladly donated millions of dollars to Woburn-based nonprofits including, City of Woburn Fire and Police Departments, Council of Social Concern, Jamie McKeown Boys and Girls Club, North Suburban YMCA, and Woburn Historical Society. During the past three years alone, these local charitable grants have totaled $6.3 million.

Local businesses should and do contribute substantially to the municipal budget, playing a huge part in keeping Woburn well funded and affordable for residents. The current system is working—the City is in an enviable financial position, and its residents enjoy a very high standard of living while paying low real estate tax, water, and sewer rates in comparison to most other communities in the Commonwealth. For example, for fiscal 2015, the residential property tax rate in Woburn is $10.17 per $1,000 of value, whereas the commercial property tax rate is $26.30 per $1,000 of value. Businesses pay a disproportionately high percentage of the City’s real estate tax levy, and yet, fortunately, many firms still choose to locate here because they value being part of a community with a healthy economy, good infrastructure, and skilled and well-educated workforce.

With the above in mind, the potential of making the community less attractive to businesses is a very real downside of the CPA. The proposed surcharge is not large, but there is a cumulative effect when it is added to the numerous other fees and taxes businesses are already paying. Woburn needs to attract and keep businesses and to encourage their growth; another charge, especially an unnecessary one, does not send a welcoming message.

As the City’s single largest real estate tax payer, the Cummings organization’s interests are aligned with the best interests of the entire community. It is through that lens that we reached our conclusion that CPA is not an appropriate new annual tax for Woburn. Adding new taxes or fees that are not essential does not benefit taxpayers in either sector.

Sincerely,

Dennis A. Clarke

President and CEO

Cummings Properties