NORWICH – City taxpayers can expect a 4.97 percent tax increase, according to the proposed 2008 budget.
Tuesday night, a special meeting of the City of Norwich Common Council was held for the sole purpose of discussing the city’s tentative budget for the 2008 year. The budget totals $10,934,141, an increase of $842,706 from the 2007 budgeted amount.
According to City Finance Director William Roberts, the proposed budget will cause an increase of .80 per $1,000 of taxable assessed value. The average home in the City of Norwich has a taxable assessed value of $55,000. The tax increase would raise the tax bill by $44, for a total yearly tax cost of $930.05.
In addition the city has proposed an increase of 3.01 percent on the water and sewer rate. Currently, the average city home pays approximately $493.80 per year for water and sewer services. The increase would bring the total bill to $508.68.
Big changes in the budget occurred in some places. Roberts explained that anticipated revenues for ambulance recovery fees were higher than in years past due to Superior pulling its ambulances from the county. Although another private ambulance squad may soon begin operating in the county, Roberts anticipates close to $560,000 in ambulance recovery fees. The increase is due in part to the increased calls and in part because of increased rates for Medicaid paybacks and increased payments from other insurance companies, like Blue Cross/Blue Shield, which may occur in the coming year.
Another boost to the city’s revenue line came in the form of state aid. This year, New York State has committed to increase General Increase Revenue Sharing by approximately $70,000. Roberts explained that while the increase would bring the revenue sharing amount up to $1,146,807, the number was still less than the city received in the late 1980s once adjusted for inflation.
Alderman Anthony Abraham questioned Roberts and Mayor Joseph Maiurano on several areas of the budget, including the amount listed for personal service for the office of mayor and for the Common Council. The tentative budget shows an increase of $13,192 for the council and $12,605 for the mayor. Maiurano explained that while these figures were contained in the budget, the council would have to vote in order to approve the salary changes. Maiurano pointed out that neither the mayor nor the council has seen a raise in 17 years. He also informed the council that while the amount was higher, if approved, the money would be used for the mayor and council’s salaries, instead of benefits which few of the council members use. “If the council passes it (the decision to apply the money to salaries) the funds will be put on as salary and not benefits,” Maiurano explained. The council voted to move the increases for both the mayor and the council to the contingency line. Once the budget has been adopted, they can then determine if the funds should continue to be used for benefits, or if they would like to utilize the funds in another way.
“This is unacceptable, because what we are doing is putting out more money than we are taking in. If we continue this trend we’re going to go bankrupt,” Abraham said.
Roberts explained that currently the city has an unappropriated fund balance of approximately $556,000, which he said is approximately 9 percent of the total operational expenditures and well within the national statistics for a reasonable level. “I’d feel more comfortable if we had an unappropriated fund balance of $700,000 or $800,000, but at the end of last year we were at $446,000. We’re getting back in line. It’s not a rosy picture, but it’s better than it was a couple of years ago. It’s slow, but we’re moving in the right direction,” Roberts said.
The council made a motion to receive the tentative budget and the water and sewer rate increases and scheduled a public hearing for 7 p.m. on Tuesday, Dec. 11 at Norwich City Court. Anyone interested in receiving a copy of the budget should contact city hall.