Port Jervis tax increase coming; Proposed hike of 14.4%

ANYA TIKKA
Posted 8/21/12

PORT JERVIS, NY — Business was far from ordinary at the recent Port Jervis Common Council meeting, as Mayor Kelly Decker, fresh from his November 3 election victory, left the podium and strode to …

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Port Jervis tax increase coming; Proposed hike of 14.4%

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PORT JERVIS, NY — Business was far from ordinary at the recent Port Jervis Common Council meeting, as Mayor Kelly Decker, fresh from his November 3 election victory, left the podium and strode to the center of the floor. “I have good news and not-so-good news,” he told the council and assembled citizens.

Starting with the good news, he said the city is signing onto a plan to create a regional economic zone. Intended to spur economic growth in the city, it would benefit businesses by enabling them to operate about 18% cheaper than in any other place in state. Decker explained that the tax rate for businesses would go up progressively to its normal level the farther one travels away from Port Jervis. He also said many cities in the state are in a similar predicament, and are supporting the initiative.

The not-so-good news was that the 2016 Mayor’s proposed city budget includes a tax increase of 14.4%. Decker explained that while the figure is not final, it’s based on the economic realities the city has been warning the public about for some time.

“I pay taxes too, and don’t want any taxes to go up. But we need to continue services that we provide,” he said.

The city lacks a viable fund balance; currently it stands at about $200,000. “After eight years of zero tax increases… I would warn this council… it will get worse,” Decker continued, and he urged any future councils to keep tax increases at nothing less than two or three percent, unless other revenues offset it.

He also said, “I want you all to know, we’re in the process of a solution.” Among those is one company that has signed a contract to generate electricity through solar power and sell it to the city at a reduced rate. Other projects that would bring money to the town are the White Water Park development, which is underway, and another project that would use the railway to create 19th-century experience rides.

“We have to cut,” Decker said, but added he didn’t want to cut the services the city provides, because of the negative impact it would have.

“I have not cut services, and if the council will, you will see a major difference in the way the city operates. DPW—garbage will pile up, police— crime will go up. These are not scare tactics,” he continued. “Come to the workshops; I will propose a city tax increase of $12 to $20 per month to the average household, no change to water or sewer fees, and I will also create a city newsletter to provide more info about the proposed budget, and a comparison with other towns.”

Among his proposals are cutting personnel hours, bringing back West End Beach with swimming instruction, and changing the transfer station rules and costs.

City clerk/treasurer Robin Waizenegger reported the city’s tax lien sale on November 16 has 130 parcels, an increase from last year’s 98.

Council members commented on the proposed increase, mostly expressing shock and concern over the plight of many city residents who they said could not absorb the increases.

A member of the public got up to say this would cause her to move to North Carolina along many others, prompting Decker to point to the statistics in the first newsletter that was available in the meeting showing Port Jervis’s cost of living was lower than most surrounding towns, as well as further afield. “Don’t go to Raleigh, it’s the same as here. Go to Myrtle Beach, it’s lower,” he said.

The council members asked residents and especially the newly elected officials to come to the budget workshops.

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