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Ogdensburg passes tentative $19,561,656 budget, raises tax rate by 15 cents

Posted 12/8/15

By JIMMY LAWTON OGDENSBURG – Ogdensburg City Council approved the tentative $19,561,656 budget Monday that  will reduce the tax levy by $159,000 and raise taxes by 15 cents per $1,000 of …

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Ogdensburg passes tentative $19,561,656 budget, raises tax rate by 15 cents

Posted

By JIMMY LAWTON

OGDENSBURG – Ogdensburg City Council approved the tentative $19,561,656 budget Monday that  will reduce the tax levy by $159,000 and raise taxes by 15 cents per $1,000 of assessed valuation.

The proposed general fund budget will increase from $12,808,086 to $13,001,827. The tax rate will increase 15 cents from $17.21 per $1,000 of assessed property value to $17.36.

City residents will also see an increase in their water rate from $318 to $334 per year. Those with metered rates will see an increase of 19 cents for a total $4.11 per $1,000 gallons. The sewer rate will not increase.

The city also approved a resolution that would allow the city to override the tax cap, despite the fact the budget came in below it.

City Comptroller Phil Cosmo said this was to act as a safety net in case an audit down the road reveals a mistake that would put the city over the cap.

If that were to happen, the city could be face penalties, he said.

Councilor Brian Mitchell compared the resolution to car insurance.

“You get but you hope you never have to use it,” he said.

City councilor Jennifer Stevenson voted against the tax cap override, citing her trust in city staff.

The largest expenses to the city continue to be emergency services.

Spending on city police accounts for about 28.9 percent of total general fund spending for a total of $3.76 million.

Ogdensburg fire services accounts for 27.16 percent of total general fund spending for a total of $3.53 million.

Public works comes in third with 17.2 percent of the total general fund spending for a total of $2.35 million.

A big problem facing the city is a drop in assessed value.

 The assessed valuation for 2015 was $271,736,410 and for 2016 it is $270,632,174. This is a decrease of $1,104,236 in the tax base.

This is due to the reduced assessment for the Seaway Shopping Plaza and the Ampersand Hydro-electric facility at the Ogdensburg Oswegatchie dam.

Rising health care costs also continue to burden the city.