Richards delivers 6.5 percent tax cut to town of Niagara residents

by Ralph Schwarz
Niagara Wheatfield Tribune, Nov. 11, 2004

Despite the troubled economy throughout Western New York, homeowners and businesses in the town of Niagara will see a reduction on their property taxes after all.

Following a public hearing on Nov. 4, the Town Board unanimously approved an average tax cut of $33 on residential properties as part of the 2005 budget submitted by Town Supervisor Steven Richards.

The 2005 tax rate for residential properties is set at $5.07 per $1,000 of assessed value, down 6.5 percent from the 2004 rate. The tax rate for commercial properties amounts to $7.30 per $1,000 of assessed value, a decrease of 4.5 percent compared to 2004.

In his tentative budget submitted last month, Richards proposed a zero-dollar tax increase.

“We did not have all our figures in from the sewer districts,” he said. “Once the right figures came in -- we are working with tentative figures -- we were able to reduce the tax.”

Town To Retire Debt

The approved 2005 budget includes total appropriations in the amount of $7.21 million, approximately $40,000 less than the amended 2004 budget. Despite increases for the state mandated pension funds and health insurance, the 2005 budget calls for approximately $168,000 less in taxes than last year.

“We are just fortunate that even though we are hit with increased costs for medical and pension, we are retiring our debt,” Richards said. “Our debt has dropped, and we are actually raising $168,000 less in taxes because we are paying off our debts. So we are fortunate it is working out that our reduction of debt is offsetting these increases in pension and medical. The town is holding its own pretty well financially.”

The 2005 budget already accounts for the new water and sewer rates that the Niagara County Legislature passed down to the individual municipalities. Thus, the town’s water rate increased from $1.75 to $1.85 per 1,000 gallons of water over the 10,000 gallon limit covered by the $15 minimum charge. The sewer rate also increased by $0.10 for every 1,000 gallons of sewer usage, exceeding the 10,000 gallons covered by the $15 minimum charge.

“The minimum charge will stay the same,” Richards said.

Traffic Fine Revenues

Richards added that the town revenues projected for 2005 would most likely remain the same, even if the state Senate does not reverse a recently-enacted legislation that shifted traffic fine revenues from local municipalities to the state. Since the town uses these fine revenues to maintain its courts and police departments, it would either have to introduce a special tax or reduce its court and police staff to prevent a decrease in estimated revenues.

“We are still facing the problem that if the state doesn’t restore the action it took, we would be forced to lay off people starting Jan. 1 so the revenue doesn’t change,” he said.

The state Assembly already voted against the legislation on Sept. 20. The state Senate is expected to decide on this issue in the week before Thanksgiving.

“A lot of our police force depends on the Senate vote,” Councilman Michael Ross said.

Final Thoughts

Overall, Richards said he feels comfortable about the 2005 budget.

“Anytime you can lower taxes in times like this, you know that you have a good, fiscally responsible town board,” he said.

Councilman Lavern Haseley shared a similar standpoint.

“We’re happy with the budget and that we were able to lower the taxes,” he said. “It all comes down to watching your spending carefully.”