Owners of residential and commercial buildings in Rotterdam will see their taxes increase next year after city council approves the 2022 budget on Wednesday evening.
The board approved its budget of $ 27.4 million 4-0. Supervisor Steven Tommasone was absent during the meeting.
Board member Samantha Miller-Herrera told the board’s agenda review meeting ahead of Wednesday night’s meeting that the tax rate did not exceed the 2% state tax levy ceiling.
However, residential taxes will increase 9.9% to $ 4.22 per $ 1,000 of assessed property value for 2022, compared to $ 3.84 per $ 1,000 of assessed property value in 2021. Commercial taxes will increase by 16 , 2% at $ 8.19 per $ 1,000 of assessed property value for 2022. Currently, the tax rate is $ 7.05 per $ 1,000 of assessed value.
The housing tax rate has been increased from what was originally in the budget proposed in November and the subject of the public hearing. Initially, the rate was only to increase by one cent. However, the commercial tax rate has since declined from the original proposal, in which it was set at $ 8.80 per $ 1,000 of assessed value.
Chief Financial Officer Elizabeth Greenwood said the change is due to getting the county’s updated appraisal values. When a budget is formulated, officials take the estimated total value of properties in the city and consider that value against the amount it needs to collect in taxes to determine the tax rate.
The rate changed because the city received updated valuation information, Greenwood said.
Greenwood said the final budget added $ 100,000 in paving funds and about $ 50,000 for a new police car.
What has also changed in the budget is the way the city tracks money for its water and sewer funds.
“It clarifies what kinds of income was going against what kinds of expenses,” Greenwood said.
This change had not been made before as Greenwood was awaiting news from the State Comptroller’s office to confirm that this was the right decision to make. That assurance came on Tuesday, she said.
“The real cost of things hasn’t changed, it’s purely a methodology in terms of accounting that we just literally separate all of these lines in the budget to make sure we count the taxed part as taxed and the utility cost . ”
This adjustment in city accounting will also be reflected differently in tax bills, Greenwood said. When residents and businesses receive their January tax bill, they will now see a line for debt service and then a line for O&M costs.
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Categories: News, Schenectady County