By DIANE LEE
SCHENECTADY -- Following in the footsteps of Troy, Albany and Saratoga, the city of Schenectady announced it will likely have to increase taxes in 2010.
Mayor Brian Stratton laid out a proposed city budget Monday -- one that is 4%higher than last year.
For the people of Schenectady that translates to a property tax hike of 5.8%. So if your home is assessed at $110,000 you'll be paying $83 more in 2010.
It may not sound like a lot but that tax hike is roughly double inflation.
Jim Livingston, who has lived in the city since 1945, hopes the tax hike says the new taxes are going to be a problem for everyone, especially homeowners who got socked with a higher tax burden after this past year's reassessment.
"Many believe the whole city was over assessed and that there wasn't a fair opportunity for people to challenge that assessment," said Livingston.
But Mayor Stratton is quick to point out Schenectady isn't the only local city in a crunch.
"The budget that Troy put out proposes a 4.2% tax hike, the Albany budget -- although it is not in specific terms -- Mayor Jennings said there is going to be a tax hike. Saratoga is looking at the astronomical number of 30%," said Stratton.
The Mayor says the main reason for the $3 million increase from the 2009 to the 2010 budget is the rising cost of employee benefits like pensions and health care, which has soared by $4 million.
But the city has also managed to offset that and other increases by reducing operations expenses by $2 million.
Chief Mark Chaires says he's doing his part by setting new overtime regulations at the police department.
"We try to tell people look, let's try to run this place like it's a small family business, like every dollar we spend would be coming out of our pocket, and we've done a pretty good job of that," said Chaires.
As for city workers, there are no plans in the budget to make cuts, but the Mayor says he can't promise anything.
Mayor Stratton says the budget could change once he gets more details on healthcare rates.
The city council must pass a budget by the first of next month.
