X

Ogdensburg mayor proposes studying potential benefits of changing from city to village

Posted 6/26/19

BY JIMMY LAWTON North Country This Week OGDENSBURG -- The village of Ogdensburg? Facing an unsustainable financial path, with a tax rate nearing the constitutional limit, Mayor Wayne Ashley on Monday …

This item is available in full to subscribers.

Please log in to continue

Log in

Ogdensburg mayor proposes studying potential benefits of changing from city to village

Posted

BY JIMMY LAWTON
North Country This Week

OGDENSBURG -- The village of Ogdensburg?

Facing an unsustainable financial path, with a tax rate nearing the constitutional limit, Mayor Wayne Ashley on Monday said the city should see if funding is available to perform a feasibility study to change their designation from city to village.

“Industry has moved out. We aren’t as big as we used to be and our workforce is costing more than our taxpayers can afford,” he said in an interview following the meeting. “When I graduated in 1968 there were 212 students in my class. St. Mary’s was still going and they had close to 45. This year there are 109 students in the class. That gives you an idea of how things have changed.”

Ashley said the city needs to look at all options and weigh the benefits of a designation change. If the city were to become a village, it would likely be within the township of Oswegatchie, as it was before it was granted city status.

Ashley noted that St. Lawrence County was in poor fiscal shape, but has been successful in growing fund balance and ended a longtime practice of borrowing money to pay bills. He said that was accomplished by reducing the workforce though attrition. He says the city may be able to follow that model if it becomes a village.

At the council’s direction City Manager Sarah Purdy will investigate potential pros and cons of changing the city’s status to that of a village or township.

Purdy said cities in the state have different financial requirements than villages, are eligible for different grants and have to follow different rules. Among those is that the state constitution limits the taxing power of cities to 2% of the five-year average full valuation.

The idea is to determine if the city would be more financially viable if it changed is designation.

City Councilor Michael Powers said changing the city’s status would be a “heavy lift,” but supported a call to have the city manager look into possible grant funding.

Councilor Jennifer Stevenson also supported investigating the issue.

Following a brief discussion, council directed Sarah Purdy create a light report of potential pros and cons associated with a status change.

She said that while a feasibility study may be completed in a relatively short time, she said actually changing the city’s status would likely be a multi-year process, should the study determine it would be beneficial the city’s residents.

In a brief interview following the council meeting, Purdy said that city has to be open-minded in looking for ways to establish financial sustainability.

She said the current tax base cannot support the services currently provided by the city, and the city’s ability to tax has nearly reached what’s allowable under the law.

Ashley said the city’s population has declined significantly since the 1960s with closure of manufacturing plants that once lined the city’s riverfront.

“We have a tremendous amount of workforce for the number of people we have in the city,” he said.

The majority of the city’s spending is for the city police services, which accounts for 31 percent.

The city fire department comes in second at 28 percent, followed by public works at 18 percent. General government accounts for 11 percent.

The city’s tax rate is nearly $20 per $1,000 of assessed value.

Ashley said if a feasible study is completed and the benefits favor the city becoming a village it would be up to voters to decide the city’s fate. He said a referendum would be held on the issue.

It’s unclear when Purdy’s report will be presented to council, but the council next meets on July 8 at 7 p.m. at city hall.