LAKE COMO — The borough council introduced its $4.8 million municipal budget during its meeting Tuesday night, with a reduced municipal tax rate compared to last year. A second reading and public hearing on the introduced budget is set for the borough council’s June 3 meeting.
According to Chief Financial Officer (CFO) Samantha Waters, this year’s budget will see a reduction in the amount to be raised by taxation.
“This year, with help of the finance committee, we were able to put together a budget with the amount to be raised by taxation, which is our municipal portion, (it) is actually about $4,500 less than last year,” Waters said.
The proposed amount to be raised by taxation is $3.261 million, with a proposed municipal tax rate of 0.388, “which is about almost five pennies less than last year,” Waters said. “It’s about a reduction in the municipal tax rate of 13%.”
Council President Douglas Witte reported that the average house in Lake Como is assessed at $824,000.
“We have a reduction in our tax rate and the tax money we’re getting is the same from last year, but the resident may see an increase because the property value has gone up,” he said. “So just because the rate goes down, it doesn’t mean your taxes are going down, because your property value has gone up…Some houses went up, some went down, but you have to take that into consideration when you see your tax bill.”
Mayor Kevin Higgins said, “We have been talking about assessments in Lake Como for many years, but more ferociously, I think, over the last year and a half.”
He noted that the tax assessments come from the county and that the budget is broken down into three separate rates: one from the school, one from the county and one from the municipality.
“The role of this council to try to combat the ADP system that assesses our homes every year is to try to lower our rate as much as we can to give as much balance as possible,” the mayor said. “We will never be able to lower our rate at the same size, or same amount, as those assessments are going up in town, but we have to do our best to try to keep up with it.”
“So we are lowering our rates significantly this year,” he continued. “It’s the first time this town has ever been under four cents, and I want to thank the work of our CFO and the work of everyone in borough hall and our finance committee…in making the decisions to try to keep that municipal rate there.”
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