Ogdensburg reviews budget with $1.9M projected shortfall

“We really need some guidance from council as to what we should be anticipating for the ability on taxes. I do know the assessed values are still up in the air until the final numbers come down but looking at our tentative assessment roll the city has an assessed value of $370 million which is up from $286 million,” said Gray.

Gray said that City Council will have to deal with annual increases to salaries and the price of everyday products used by city staff. The comptroller offered several options to council on how the tax levy and its corresponding tax rate could be used to cut into the budget gap.

If the city rolls over the 2023 budget with conservative increases and keeps the 2023 tax levy of $4.7 million, then the budget shortfall remains at $1.9 million. The tax rate would be $12.80 per $1,000 assessed value.

If the city used its tax cap increase of 2%, the gap would decrease to $1.8 million and the tax levy would increase to $4.8 million and the tax rate would be $13.05.

If the tax rate was the same as in 2022 at $16.58, the tax levy would increase to $6.6 million, however the city’s constitutional tax limit would be at nearly 93% and it would be unfeasible, according to Gray.

“We will begin drafting budgets very soon,” Gray said. “Obviously the tax rate is a pretty critical factor in the general fund budget.”

The options did not include any use of the city’s fund balance, which is anticipated to be $2.1 million at the end of the year. It would be up to the council, according to Gray, to decide how much of the fund balance that they feel comfortable using.

“This is great information to go ahead and make a decision on the budget,” said Mayor Jeffrey M. Skelly, “Definitely gives us a lot of think about.”

In other city business:

— A public hearing will be held at 6 p.m. June 12 to hear public comments regarding the city’s current Community Development Block Grant (CDBG) project: Preliminary Engineering Grant for the East Davis Street Reconstruction project in the amount of $50,000.

— City Council approved the sale of two surplus city-owned properties that were publicly auctioned off on March 2. The properties were 207 Adams Ave. that was sold to Valerie Burditt for $500, and 1217 Ford St., sold to Philip Parent for $3,000.

— Auditing services for the years 2022 to 2024 were authorized to the firm of FustCharles, Syracuse. The contract states the city will pay the firm a fee not exceeding $37,000 for 2022; $38,500 for 2023; and $39,500 for year 2024.

The City Charter, Chapter C-15, requires that the city has an annual independent audit performed.

— A letter was written to City Council by United Helpers CEO Todd Amo expressing interest in exploring increased water and sewer services beyond the city limits, toward Morristown.

“We understand that this is a complex undertaking that involves several steps. Nevertheless, we respectfully request that this idea be received positively as we explore options to work together towards making this a reality,” Amo wrote. “At this time of year, there are several State and Federal grants available that may be applicable to our collaboration, and we are committed to bringing resources to the table to support our joint efforts. We believe that this partnership could be an additional revenue source for the city, as well as meet the needs of our growing services.”