JAMESTOWN – Jamestown Mayor Sam Teresi held a public hearing Monday morning on the city council’s vote to override the state tax cap for the 2017 city budget.
In October, Teresi released a $35 million executive budget that increased the city’s tax levy by $150,220 – or .96 percent. The proposed tax levy increase is $42,955 above the state’s tax cap limit, which is .69 percent for the city in 2017. Last month the city council approved a resolution that would allow the city to exceed the cap. Under state law, a hearing is also required.
According to one of the individuals who attended the hearing, about 10 people showed up and all who offered public comment spoke out against the proposed tax cap override.
The city is facing an $879,000 deficit in next year’s budget – meaning it needs every source of revenue in can identify to close the spending gap. As a result, it’s expected the final budget will include a tax increase that goes over the tax cap – despite any expressed opposition from the public.
The proposed tax hike from the mayor also brings the city to its constitutional taxing limit of $15,844,270. That equates to a tax rate increase for property owners of .76 percent – or $0.18 per thousand assessed value over the rate for the current year.
The city is required to have a budget in place by Dec. 1. A hearing on the executive spending plan is scheduled for 6 p.m. on Monday, Nov. 9 in the Jamestown City Council Chambers, located on the 2nd floor of city hall.
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