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Ogdensburg to hold tax cap override hearing

Posted 9/28/16

By JIMMY LAWTON OGDENSBURG -- A public hearing regarding a proposed tax cap override will be held Tuesday Oct. 11 at 7 p.m. at city hall. Ogdensburg City Council approved the hearing date Monday. The …

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Ogdensburg to hold tax cap override hearing

Posted

By JIMMY LAWTON

OGDENSBURG -- A public hearing regarding a proposed tax cap override will be held Tuesday Oct. 11 at 7 p.m. at city hall.

Ogdensburg City Council approved the hearing date Monday.

The council has passed the resolution in previous years as a precaution, but has typically worked to keep the budget under the tax cap. The state implemented the tax cap with hopes of reducing property tax burdens.

City comptroller Tim Johnson said that was the case this year as well.

At the time the cap was implemented, it was supposed to be accompanied by a reduction in unfunded mandates, but the state has failed to make good on that claim.

City Manager Sarah Purdy is estimating the cap at 1 percent for the city, but the final number could come out even lower. She said that means the city can only raise an additional $130,000, without breeching the cap.

“Unfortunately we already know we have increased pension and health insurance costs that total more than this amount,” she said in an emailed response.

This year the council is facing financial difficulties including decreased sales tax revenues, impending needed upgrades at its wastewater treatment plant, and a low general fund balance.

The city manager and department heads have been looking for ways to cut costs while maintaining services, and city councilors recently began working on the budget.

Last year the city spent $419,499 from the general fund to keep the tax rate below the cap, which was just about .73.