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Petersburg council lowers FY27 real estate tax rate to $1.22 after public hearing
Summary
After a public hearing with residents urging deeper cuts, Petersburg City Council voted to reduce the FY27 real property tax rate from $1.27 to $1.22 per $100 of assessed value (a 5-cent reduction), citing recurring expenses and conservative treatment of casino revenue.
Petersburg City Council on Feb. 26 adopted an ordinance setting the FY27 real property tax rate at $1.22 per $100 of assessed value, a 5-cent reduction from the current $1.27 rate.
Gary Kosier, the city's budget manager, told the council that "each penny that the tax rate is reduced removes $351,704 in revenue from the operating budget." He said holding the rate at $1.27 would produce a levy of roughly $44 million (budgeting about $40 million at a 90% collection rate), while the staff recommendation of $1.22 would yield about $42 million and represent roughly $4 million more than a revenue-neutral $1.09 rate.
The council debated larger cuts after a public hearing in which residents said rising assessments and fixed incomes were squeezing households. Raymond Crockett Jr. asked the council to "drop it down a little bit lower since we got the assessment going up starting in July," and Cathy Walker urged a rate cut so residents could "keep on an even keel and not feel this pinch so hard." Samuel Dobie said one of his properties increased 200% over recent reassessments and called the increases "outrageous."
City Manager Mr. Altman and staff urged caution. Altman said the city faces recurring obligations from a recent class-and-comp salary adjustment, health-insurance increases, and higher debt-service costs, and recommended budgeting casino receipts conservatively because only one month of gaming revenue (about $900,000) had been realized so far. "We're going to be conservative," he said, noting the difference between one-time and recurring revenue.
Councilman Kupfer offered a substitute motion to cut the rate to $1.18 per $100 (a 9-cent reduction); the substitute failed on a roll call (Cuthbert and Westbrook Aye; Myers, Smith Lee, Vice Mayor Hill and the mayor No). The original motion to adopt $1.22 passed with Cuthbert, Myers, Westbrook, Smith Lee, Vice Mayor Hill and the mayor voting Aye.
The council said more budget discussion will continue during the regular budget process and a joint work session with schools; public meetings on the FY27 budget were referenced for follow-up.
The council adjourned after the vote.
