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Town board flags potential 19% town tax-rate jump as revaluation, school and county rates remain uncertain
Summary
Board members reviewed a tax-rate spreadsheet showing the town portion could rise about 19% if county and school rates hold; members discussed revaluation timing, possible changes to exemptions and capital-improvement cuts to reduce pressure on the operating budget.
The town board reviewed a spreadsheet showing the town’s tax rate could increase roughly 19% if county and school rates remain as currently estimated, the town administrator said. The administrator told the board receipts had reached about $1.8 million as of that afternoon, but several key variables — most notably school and county rates — remain undecided.
The board spent much of its discussion on how a revaluation scheduled to begin preliminary work in January could affect the tax rate. The town administrator said the revaluation contractor will begin preliminary work in January with preliminary reports late in the spring and final values expected by September. "If valuation makes up that 27% it will drive the tax rate down," the administrator said, describing how assessed values can offset tax-rate pressure.
Board members warned that, absent changes in outside levies, the primary way to control the town’s tax rate would be to cut capital-improvement spending or consider service reductions. "The only place that we can make savings is cut back in the capital improvements," one member said, noting reductions would be painful for long-range projects. Members also discussed the possibility of adjusting exemptions — particularly for the elderly — to blunt the impact of rising rates.
The administrator said he had prepared the preliminary 232 form for DRA (Department of Revenue Administration) and expected a returned form to sign and later a 232R after DRA adjusts items based on audit conversations. He also said staff would forward an explanation for recent changes in the town’s unassigned fund balance to the board for review.
The board did not take a final vote on tax rates; members said they would await final school and county figures and the revaluation results before making binding budget decisions. The board plans to revisit the projections at upcoming meetings and to solicit comparative data from nearby towns that recently completed revaluations.
