X

Ogdensburg pays down debt, maintains revenues despite 10% decrease in property tax levy

Posted 8/5/21

BY JIMMY LAWTON North Country This Week OGDENSBURG — Ogdensburg had a $1.4 million surplus in the general fund, according to a 2020 audit, has paid down substantial debts and maintained revenues …

This item is available in full to subscribers.

Please log in to continue

Log in

Ogdensburg pays down debt, maintains revenues despite 10% decrease in property tax levy

Posted

BY JIMMY LAWTON
North Country This Week

OGDENSBURG — Ogdensburg had a $1.4 million surplus in the general fund, according to a 2020 audit, has paid down substantial debts and maintained revenues despite a 10 percent decrease in the property tax levy.

Angela Gray, who serves as the city’s comptroller, said properties taxes are down by about $500,000 due to planned tax cuts, but said sales tax has come in 25 percent higher and has offset the revenue loss.

Overall revenues in the general fund are flat, according to Gray, who told council Aug. 2 that about 43 percent of the budget had been expended as of June, the halfway point of the budget season.

Revenues in the water fund were down about $31,000 due to reduction in use by a commercial user, but sewer revenues were similar to last year.

Gray said the city's general fund had a $1.4 million surplus in the 2020 budget and is set to finish the year at $4 million.

She said the city entered the year with a $1.4 million tax anticipation note that had to be repaid, which was equal to the surplus and keeping the cash the same over the year.

She said the city is also paying off $800,000 to the county for uncollected taxes, of which it has paid about one-third.

City council is also anticipating revenue from a recent opioid lawsuit settlement, but details on when or how much is uncertain.

The city is also expecting to receive $500,000 in COVID-19 relief funds from the federal government this year and an additional $500,000 next year.

Gray said the city has until 2024 to spend the funding on costs associated with COVID-19.

While the city’s finances are in relatively good shape compared to previous years, it has not come without controversy.

Much of the savings was achieved through reductions in staff including deep cuts to the city’s fire department, which has prompted protests and an ongoing labor dispute.

The city also dissolved the recreation department, has left vacancies in the police department and lost several administrators.

Despite the controversies caused by the cuts, City Manager Stephen Jellie told city officials Monday that depending on how an ongoing dispute over sales tax collections will be handled, the city’s police department may need to be reduced to as few as 15 officers.