Real estate taxes in the City of Bradford are going up, and Mayor Tom Riel is imploring the Bradford Area School District to join the city in fighting one of the alleged reasons.
At Tuesday’s meeting, Bradford City Council passed a 2017 budget with a millage rate of 18.02 mills — one-half mill more than last year. Council approved it unanimously, with a reluctant vote in the affirmative from Riel.
“Some of our larger corporate entities are going to Smethport and getting their assessed values lowered,” he said. “It’s really hurting us to the tune of millions and millions. And the city is still expected to provide them with services — police, fire, streets, garbage.
“So people understand we are losing $1 million a year from our tax base,” Riel said. It isn’t the “shacks we are tearing down” that’s causing it, he added, saying the demolished houses have been blighted and in most cases, off the tax rolls for years.
“I would implore the school district to team up with us and get ourselves involved in this,” the mayor said. “Nobody pushes back against these reassessments.
“These reassessments — it seems the majority of them get granted,” Riel said. “A municipal government has the right to look at the assessed value of properties. Maybe we need to do that.”
Riel shared a list of real estate assessment data for the city. In 2013, the assessed value of property in the city was $183,189,370. In 2016, it was $176,770,800. The assessed value has dropped every year since 2011, the data showed.
The mayor also “ranted,” as he put it, over the need for pension reform. The city’s minimum municipal obligation is more than $1 million each year — “it’s more than a third of what we bring in in tax revenue. That’s why we need pension reform.”
When Councilman Fred Proper, director of accounts and finance, announced the budget, he read a letter outlining the spending plan.
“During the 2017 budget process, the city budget was again impacted by the usual increases in the cost of health insurance, workman’s compensation and commercial insurance. To mitigate these increases, the city was able to secure a new carrier for the workman’s compensation and reduce these expenses rather than see the typical increase,” Proper said.
“On the revenue side, the city of Bradford tax base decreased by $1.16 million in 2016,” he continued. “Significant decreases in three of the last four years has decreased the tax base about $8 million, and the resulting loss of corresponding tax revenue weakens the city’s financial position. The cumulative decrease amounts to 80 percent of one mill, or a little over $140,000 annually.”
The millage rate and budget ordinances were both unanimously approved.
Riel said the tax increase would mean a person with a $50,000 home would pay about $25 more per year.
And, he cautioned the council members, changes must be made in the coming year.
“I would implore this council to look at slashing expenses” and maybe even cutting some jobs, he said. “We’re losing a million dollars a year. Less than $3 million of our $9.8 million budget comes from taxes. We need to look at changing the way we do business.”
