Schenectady mayor calls for property tax hike Reported by: Steve Flamisch Email: steveflamisch@fox23news.com Print Story Published: 9/30 11:04 pm Share Updated: 9/30 11:29 pm
SCHENECTADY – Mayor Gary McCarthy submitted his 2013 budget proposal on Sunday, calling for a property tax hike of up to 4.1%. The percentage would be lower for taxpayers who successfully grieved their property value assessment.
The Schenectady County Legislature is also considering a property tax hike, meaning city taxpayers may feel the pain twice. County lawmakers may push for an increase of up to 2.95% next year.
“I’m sympathetic,” McCarthy, a Democrat, said of struggling property taxpayers. “We’ll work with the council to see if we can’t try to fine tune that or come up with other efficiencies.”
The city council will review and amend the mayor’s budget proposal ahead of the November 1 adoption deadline. Opposition was already brewing late Sunday.
“The taxes are too high,” Council Member Vince Riggi, an independent, said. “Whatever we can do to whittle this down more, I think our council is really charged to do this – and we should do it.”
Riggi said he also took exception to the mayor’s proposed $20 hike in trash collection fees.
In a move that did not require council approval, the mayor last week laid-off four full-time city employees. He is leaving additional positions vacant, eliminating several seasonal jobs, and bumping a few employees into lower-paying roles.
“You never like to do that because it creates a lot of hardship and stress, puts pressure on the entire workforce, but unfortunately it’s just the reality of the situation we’re dealing with,” McCarthy said.
Riggi said the laid-off workers appeared to have been “targeted" -- a charge McCarthy denied. The city simultaneously added new jobs in other areas.
Overall, it’s a tough time in the Electric City.
Moody’s recently downgraded Schenectady’s credit rating, meaning the city will be forced to pay a higher interest rate on its bonds. The mayor blamed the financial woes in part on rising costs, falling revenues, and a vast inequity in the state aid formula. Several smaller cities, including Utica, receive more state money.
The county is also facing financial struggles. County Manager Kathleen Rooney may ask for a property tax hike in her budget proposal. Majority Leader Gary Hughes, a Democrat, supports the increase – and his party controls 13 of 15 seats in the legislature. Minority Leader Jim Buhrmaster, a Republican, is opposed.
City and county taxes comprise close to 50% of each city property taxpayer’s bill. City school district taxes comprise the other 50%.
Mayor stays under cap Schenectady's McCarthy offers 4% tax hike, revenue collection ideas in budget By Lauren Stanforth Published 11:04 p.m., Sunday, September 30, 2012
SCHENECTADY — Mayor Gary McCarthy is proposing a 4 percent city tax increase, a $20 hike in trash collection fees and new ways to make money — like ticketing big rigs for heavy weights and going after parking-ticket delinquents — to make his budget for next year work.
McCarthy's $78.9 million spending plan was presented to City Council Sunday afternoon, four days after the city's bond rating was downgraded by Moody's Investors Service and in the wake of McCarthy firing his budget analyst for decrying the decision to negotiate for only an additional $719,000 in 2013 sales tax revenue from Schenectady County.
But the mayor's proposed budget appears to skirt major controversies, instead eliminating positions that had already been slated for the chopping block, like the city's parks director and an assistant police chief.
The 2013 budget is under the 2 percent property tax cap in that the tax levy would only go up 0.48 percent. But it calls for a 4.18 percent tax rate increase to collect the $32.1 million needed to balance the budget. The increase would mean $56 more in taxes for a home assessed at $100,000. And while the proposed budget also includes taking in $417,052 more for garbage collection — raising the fee on a single-family home by what amounts to 38 cents a week — the most notable revenue streams are untested..........................>>>>........................>>>>...................Read more: http://www.timesunion.com/local/article/Mayor-stays-under-cap-3907459.php#ixzz282l3PRoO
What part of the taxes are too high already doesn't Mayor McCheese understand? He complains that nobody will buy a house in Schenectady then raises taxes, which is the main reason that people won't buy a house there in the first place.
"As for job cuts, McCarthy said he has eliminated 22 positions — most of which come by moving seasonal pool jobs under the purview of the Boys and Girls Clubs of Schenectady."
Gotta' love it when they have an open house for all the great, foreclosed, decayed properties in Schenectady at 2 pm and at 4 pm McCheesy drops the tax bomb. Move here and you'll get taxed more! That's a great welcome wagon strategy.
McCarthy is systematically forcing every single City home and property owner into foreclosure by his total inability to stand up to the Unions. He has no clue what he's doing and is probably getting his orders from someone in the County.
Thank you Vince Riggi for standing up yet again while the clowns dance around the reality that the high taxes are destroying our City.
Working together works! The City was finished when McCheese "won". He never saw a tax he didn't want to hike. The only hope is bankruptcy. What happened at the last council meeting sealed the City's fate. Without an increase in sales tax revenues for 8 years the City finished. Worse is McCheese creating more positions. More code enforcers? WTF! With County, garbage, water and Schools increases City property owners are looking at paying 20% more. Riggi needs to purpose serious cuts. Voting against eliminating 7 minor positions made no sense.
Make sure to watch the Commitee Meeting. I am sure there will be a big push by Bruckner and McCarthy to move to executive session to discuss the budget. Hopefully Riggi and Erickson stop the attempt.
Watch the poor projections on the 2013 budget. These guys know nothing about utility. Collecting that fist $6 million of the $18 owed is 100 times easier than collecting the next $1 million. The people who were going to pay, paid. The remaining $12 million in taxes owed is almost non collectable infact alot of it is a liability and I am sure the city has looked at these homes and are trying to figure out if there is a way not to take them back.
This will come to light more after the budget is passed. The problem is that they need to make it seem like they have antoher $12 milllion in collectable taxes to fluf and pass this crappy budget. They need to make some writeoffs plain and simple.
There needs to be a law that bans the use of a allowance for uncollected taxes that is over a certain percentage of the total tax levy.
Also real interested in the projected PILOT income projected for 2013. Both the city and county have weak PILOT amounts trended for the last 10 years. I am suprised they are touted so much by the Metroplex thumpers.
The State audit couldnt come fast enough.
Life is tough, but it's tougher when you're stupid - John Wayne
TIP TO NEW VISITORS TO THIS FORUM - To improve your blogging pleasure it is recommended to ignore (Through editing your prefere) the posts of the following bloggers - DemocraticVoiceofReason, Scotsgod08 and Smoking Bananas. They continually go off topic, do not provide facts and make irrational remarks. If you do not believe me, this can be proven by their reputation scores or by a sampling of their posts.
Is it too embarrassing for him to comment on how all the wild spending on downtown has NOT helped the city? To embarrassing to admit that the wild spending on downtown has resulted in increased taxes on the homeowners, reduced home values, and a DRASTICALLY reduced tax base.
By the way, it is NOT a 4.1% tax increase. it is more because the trash fees need to be included, the 4% does NOT include the fee increases
Oh. wait, the cheerleader has me on ignore, ALLEGEDLY. We all know he reads it, he just knows that I have been right all along
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
DiNapoli Proposes Early Warning System To Identify Local Governments In Fiscal Stress New Report Finds Cities' Financial Outlook Deteriorating; Contains Detailed Economic and Demographic Data for Cities With a growing number of local governments facing significant fiscal stress, State Comptroller Thomas P. DiNapoli announced plans today to implement an early warning monitoring system that would identify municipalities and school districts experiencing signs of budgetary strain so that corrective actions can be taken before a full financial crisis develops.
"Local officials are struggling to cope with considerable economic challenges and structural budget imbalances and the situation may only get worse," said DiNapoli. "That's why my office is proposing an early warning system that will identify those headed down the path to fiscal crisis sooner and give local officials and the public sufficient time to discuss options for turning things around."
Using data already submitted by more than 4,000 local governments, DiNapoli's office will calculate and publicize an overall score of fiscal stress for municipalities and school district across the state. These scores will be used to classify whether a community is in "significant fiscal stress," "moderate fiscal stress," or "nearing fiscal stress." This system is based on a process that DiNapoli's auditors have been using to detect financial problems in communities.
The early warning system will include nine financial indicators, such as cash-on-hand and patterns of operating deficits, together with broader demographic information like population trends and tax assessment growth. DiNapoli plans to distribute the proposed system to officials in the state for their review during a 60-day comment period. DiNapoli will implement the system starting with those localities whose fiscal year ends December 31, 2012 and later apply it to villages and school districts whose fiscal years end at various periods throughout the year.
The proposed system was announced in conjunction with a report released by DiNapoli today that examines the demographic and financial trends of New York's 61 cities (excluding New York City) over the past three decades. The report found that many of New York's cities are struggling to balance budgets and revitalize deteriorating local economies. This report is the second in a series of reports examining local government finances and factors causing fiscal stress.
"Cities are struggling to keep their heads above water," said DiNapoli. "The fiscal challenges they face have evolved over many years and are systemic."
Since 1980 city expenditures have jumped $2.7 billion, while locally raised revenues increased by only $2.1 billion, according to the report. Cities historically relied on property taxes as their primary source of revenue to fund expenses. With property taxes outpacing housing values and income levels, many troubled cities are relying more on sales taxes and are increasing fees for services. Due to a stagnant economy, however, these new revenue sources have not kept pace with growing expenditures.
State aid has increased from 16 percent to 21 percent of total revenues for cities over three decades, while federal aid has declined from an average of 17.5 percent of total revenues to 6.8 percent. The level of growth in state aid has varied from one city to another.
Other findings in the report include:
For the 61 cities examined, overall population decreased by 15 percent since 1980. The loss was more profound in some regions. For example, Niagara Falls lost 30 percent of its population; Buffalo 27 percent; Rome 23 percent; Utica 18 percent; Elmira 17 percent; and Binghamton 15 percent. Many cities suffered sizeable job losses between 1980 and 2010. Cities in the Buffalo-Niagara region lost 31,300; the Rochester area lost 14,200; and the Syracuse region lost 11,000. By 2010, the state unemployment rate of 8.5 percent was exceeded in a number of cities around New York. This included: Buffalo (12.4 percent); Elmira (12.3); Gloversville (14); Utica (11.5); Rochester (11.7); Oswego (11.4); and Syracuse (10.2). Since 1980, poverty rates in New York's cities have outpaced the statewide and national averages. The report found 48 cities exceeded the state average of 14.2 percent. The highest rates of poverty were found in Syracuse (31.1); Rochester (30.4); Buffalo (29.6); Utica (29); Binghamton (27.; Gloversville (27.5); and Newburgh (25.. The report includes extensive charts detailing specific economic and demographic information about New York's cities. For a copy of the report visit: http://osc.state.ny.us/localgov/pubs/fiscalmonitoring/pdf/nycreport2012.pdf
To see DiNapoli's first report released in August on fiscal stress, click here.
DiNapoli's Division of Local Government and School Accountability collects and analyzes the annual financial reports, and where applicable, the property tax cap calculations, from local governments, school districts, public authorities, fire districts and other special taxing districts. It also is responsible for auditing more than 10,000 local government entities.
Mayor Jennings also isn't getting his mayoral salary with a pension attached.
Maybe the only way ANYONE can afford to live in the City is if they double dip....thanks McCheesy....I'll take a side order of poverty with my meal.
Don't get me wrong, I like the guy, but I think he is getting a pension, having taught for 21 years at Albany High. The guy is totally accessible though. He even has a call in radio show each week, that allows his constituents to ask him anything they want. If you see him in person, he'll usually make sure any problem you might have, is addressed pretty immediately.
Two things I've gotten from McCarthy's tme in office: He knows nothing of anything that affects the city's finances and it's all someone else's fault.
The truth, the whole truth, and nothing but the truth.
Now here's my thought. He's screwing up so bad and with endless tax increases, he and the dems will lose. And then all those principal payments will be coming due and the dems will blame the reps or whatever party (other than the dems) when all those payments put off til the future come due.
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
Logged
Working together works! The City was finished when McCheese "won". He never saw a tax he didn't want to hike. The only hope is bankruptcy. What happened at the last council meeting sealed the City's fate. Without an increase in sales tax revenues for 8 years the City finished. Worse is McCheese creating more positions. More code 
