Quoted Text

SCHENECTADY COUNTY
Mortgage recording fees decline
Many municipalities budgeted accordingly
BY MICHAEL LAMENDOLA Gazette Reporter

    Deteriorating economic conditions are costing local municipalities money this year in mortgage recording fees, but several leaders expected the losses and budgeted accordingly.
    That’s the good news. The bad news is mortgage tax recording fees are expected to decline further next year due to the meltdown in the housing and mortgage markets. Municipalities budget for the money.
    The Schenectady County Legislature distributes mortgage recording fees semiannually, the first time during the summer. The Legislature presented the latest distribution, covering April 1 to Sept. 30, at Wednesday night’s committee meeting. Legislators are scheduled to vote on the distribution Nov. 12.
    The latest distribution is $1.9 million, a decrease of $298,000 from a similar period last cycle. The distribution is down $810,000 for the year, compared to $4.3 million collected in 2007.
    The county clerk collects 1.25 percent of the value of mortgages recorded with the office. People record their mortgages after buying or refinancing their homes.
    Municipalities in the county receive 0.5 percent of the fee. The county keeps 0.25 percent, the Capital District Transportation Authority gets 0.25 percent and the state Mortgage Agency gets 0.25 percent.
    Local officials said they anticipated the economic downturn and budgeted mortgage fees conservatively for the year.
    “We are coming in right as projected,” said Rotterdam Comptroller Patrick Aragosa. “I budgeted $756,000.”
    Rotterdam will receive $402,000 for its final installment this year, bringing its total for the year to $752,513. The town received $943,136 in total last year.
    Scotia also budgeted mortgage tax receipts conservatively this year, said Mayor Kris Kastberg. The village is slated to receive $39,946 this cycle, for a total of $75,666 for the year. Last year, the village received $96,012.
    Unlike other municipalities, however, Scotia knows exactly what it will receive for the year, Kastberg said. This is because the village’s budget cycle begins June 1, after receipts are distributed, while other municipalities begin their fi scal calendar year Jan. 1. They, therefore, must estimate their mortgage tax receipts for the year, Aragosa said.
    Kastberg said Scotia’s finances are more sensitive to revenue changes, due to its size, than some other municipalities. For example, every $10,000 represents a 0.3 percent change in the village’s tax rate, he said.
    For Glenville, the figure is $50,000, said Town Manager Tony Germano.
    Germano said the town will see an extra $32,000 in mortgage recording fees this year, based on his 2008 budget of $700,000. “It is a pleasant little surprise. The hope is that it will at least continue, as we budgeted conservatively for 2009,” he said.
    Niskayuna Supervisor Joe Landry said the town’s total of $746,000 is right on budget. Next year, however, the town expects to receive $100,000 less in fees.
    Elsewhere, the city will receive $893,397 for the year, down $237,674 from 2007.
http://www.dailygazette.net/Default/Client.asp?Enter=true&skin=CLONE&Daily=SCH

So, if I decide to take advantage of the new low rates that the fed set, I now have to pay money to help keep Schenectady County solvent?  There's a fee for me to save money?  I have to pay bureaucrats overspending habits if I want to take care of my own overspending habits?  And they wonder why the money is down for this...taxes are too high, therefore, there's less sales in Schenectady County.  In the end, less money brought in because you're charging more taxes.  

More renaissance news? Another indication of the complete failure of Metrograft to attract businesses and home buyers. Nobody wants to buy property in this County because of the high County taxes so they raise the recording fees, which is another disincentive.

With the pending downturn of the economy, there is no one in their right mind that would move to NYS let alone Schenectady. Well, unless you need public assistance. Then Schenectady is the place to be!!