Norwich eyes 9 percent tax hike
NORWICH – The City of Norwich Common Council will come together for a special meeting tonight at 6 at the city court for two public hearings; one for the proposed 2013 city budget and the other regarding a proposed local law to override the 2 percent tax cap for the 2013 fiscal year.
The 2013 budget calls for a tax rate increase of 9.8 percent, transcending the 2 percent property tax cap enacted by New York State. If passed, residents can expect to pay $20.76 per $1,000 in property taxes, an increase of $1.86 from the 2012 budget. According to the City of Norwich Department of Finance, the average taxable assessed value for a city property owner amounts to $55,000, which means residents will pay $102.30 on average over the course of the year (equivalent to $8.53 per month).
The city faced a similar financial situation last year, when the council voted to override the 2 percent tax levy for the 2012 budget.
Increased tax rates are nothing unexpected, explained city Finance Director Bill Roberts. Over recent years, pension costs have been rising significantly for municipalities across the state and are projected to continue rising in the coming years. “It’s something that’s beyond our control,” said Roberts. “These are rates that are state regulated and there’s nothing we can do about it.”
At the same time, the 2 percent property tax cap signed by Governor Andrew Cuomo in 2011 is tying the hands of municipalities as they deal with rising pension costs, Roberts added. Pension costs have skyrocketed from an 8 percent increase in 2009 to a 33 percent increase in 2012. The city paid $466,939 to the State Retirement System for city employees only three years ago; however, that figure jumped to more than $1 million in 2012, and a there’s a projected cost of more than $1.1 million next year.
“We’ve been able to manage ourselves pretty well,” observed Mayor Joseph Maiurano, “but there comes a time when you have to make a tough decision for the future,” he said. “This isn’t something that sneaked up on us. We’ve been anticipating those costs to rise and we have been managing the best we can.”
Adding to the fiscal restraints of rising pension costs and the 2 percent tax cap, the city was dealt another, albeit less substantial blow when it received less money in state revenue sharing – as much as $140,000 less than anticipated in 2009. It’s another reason the city waited as long as possible to compile a tentative budget, Roberts noted. “The city has done an outstanding job of operating on a budget of austerity ... Without more actual numbers, we would be flying blind,” he said. “In certain years, it’s best to wait almost until the last-minute to see what (money) we will have available.”
The Mayor said the primary focus of the city is on public safety and public works, citing the proposed 2013 budget as a way to sustain without depleting the fund balance. “It’s an increase in taxes and no one likes an increase,” he said. “It’s not ideal, but it’s the most responsible thing to do.”
The 2013 budget calls for a tax rate increase of 9.8 percent, transcending the 2 percent property tax cap enacted by New York State. If passed, residents can expect to pay $20.76 per $1,000 in property taxes, an increase of $1.86 from the 2012 budget. According to the City of Norwich Department of Finance, the average taxable assessed value for a city property owner amounts to $55,000, which means residents will pay $102.30 on average over the course of the year (equivalent to $8.53 per month).
The city faced a similar financial situation last year, when the council voted to override the 2 percent tax levy for the 2012 budget.
Increased tax rates are nothing unexpected, explained city Finance Director Bill Roberts. Over recent years, pension costs have been rising significantly for municipalities across the state and are projected to continue rising in the coming years. “It’s something that’s beyond our control,” said Roberts. “These are rates that are state regulated and there’s nothing we can do about it.”
At the same time, the 2 percent property tax cap signed by Governor Andrew Cuomo in 2011 is tying the hands of municipalities as they deal with rising pension costs, Roberts added. Pension costs have skyrocketed from an 8 percent increase in 2009 to a 33 percent increase in 2012. The city paid $466,939 to the State Retirement System for city employees only three years ago; however, that figure jumped to more than $1 million in 2012, and a there’s a projected cost of more than $1.1 million next year.
“We’ve been able to manage ourselves pretty well,” observed Mayor Joseph Maiurano, “but there comes a time when you have to make a tough decision for the future,” he said. “This isn’t something that sneaked up on us. We’ve been anticipating those costs to rise and we have been managing the best we can.”
Adding to the fiscal restraints of rising pension costs and the 2 percent tax cap, the city was dealt another, albeit less substantial blow when it received less money in state revenue sharing – as much as $140,000 less than anticipated in 2009. It’s another reason the city waited as long as possible to compile a tentative budget, Roberts noted. “The city has done an outstanding job of operating on a budget of austerity ... Without more actual numbers, we would be flying blind,” he said. “In certain years, it’s best to wait almost until the last-minute to see what (money) we will have available.”
The Mayor said the primary focus of the city is on public safety and public works, citing the proposed 2013 budget as a way to sustain without depleting the fund balance. “It’s an increase in taxes and no one likes an increase,” he said. “It’s not ideal, but it’s the most responsible thing to do.”
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