City proposes 4.97 percent tax increase

NORWICH – City taxpayers can expect a 4.97 percent tax increase, according to the proposed 2008 budget.

Tuesday night, a special meeting of the City of Norwich Common Council was held for the sole purpose of discussing the city’s tentative budget for the 2008 year. The budget totals $10,934,141, an increase of $842,706 from the 2007 budgeted amount.

According to City Finance Director William Roberts, the proposed budget will cause an increase of .80 per $1,000 of taxable assessed value. The average home in the City of Norwich has a taxable assessed value of $55,000. The tax increase would raise the tax bill by $44, for a total yearly tax cost of $930.05.

In addition the city has proposed an increase of 3.01 percent on the water and sewer rate. Currently, the average city home pays approximately $493.80 per year for water and sewer services. The increase would bring the total bill to $508.68.

Big changes in the budget occurred in some places. Roberts explained that anticipated revenues for ambulance recovery fees were higher than in years past due to Superior pulling its ambulances from the county. Although another private ambulance squad may soon begin operating in the county, Roberts anticipates close to $560,000 in ambulance recovery fees. The increase is due in part to the increased calls and in part because of increased rates for Medicaid paybacks and increased payments from other insurance companies, like Blue Cross/Blue Shield, which may occur in the coming year.

Another boost to the city’s revenue line came in the form of state aid. This year, New York State has committed to increase General Increase Revenue Sharing by approximately $70,000. Roberts explained that while the increase would bring the revenue sharing amount up to $1,146,807, the number was still less than the city received in the late 1980s once adjusted for inflation.