OGDENSBURG, New York (WWNY) – A new city budget analysis shows Ogdensburg ranks near the bottom of the state for taxable property, which officials say is the reason taxes keep climbing.
The city has long faced the problem of tax-exempt properties, including state complexes such as the psychiatric center and two prison properties.
In preparing next year’s budget, City Manager Fonda Chronis said he found that while the city spends 32% less per capita than the average city in the state, it ranks near the bottom in taxable property values, 56th out of 61 cities per person and 59th out of 61 per property.
“We are not going to cut our way into prosperity. What we have to do is work on growth,” Chronis said.
Tax levy increase offset by utility cuts
Chronis’ budget proposal calls for a tax levy increase, though it will be more than offset by cuts in water and sewer rates.
Mayor Mike Tooley said the city may not be able to continue holding tax increases to a minimum without further measures.
“We may not be able to sustain that without service cuts or some consideration of a large property tax increase,” Tooley said.
Tooley said a large property tax increase is not an option.
Development projects underway
City officials say there are positive signs for the future. Several projects are in progress, including a brewery in the marina district, pending development of the Diamond site and possibly the Shade Roller site next door.
The state has sent $33 million to Ogdensburg over the past couple of years for downtown development and other projects.
Tooley said the city is working to grow the tax base.
“We have a game plan that we’re trying to follow going forward, again trying to have communications with the state for additional financing for different reasons, having discussions with developers about the properties we’ll be marketing,” Tooley said.
Tooley said the proposed 2.3% tax increase for next year will likely get smaller by the time the budget is adopted.
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