Following a public hearing on September 2, Spencerport Village Board members decided not to bring a proposed Gross Utility Tax to a vote. Mayor Gary Penders says the motion was brought to the floor but there was no second, meaning the proposal died on the floor and will not move forward.
“We listened to what people said,” Penders says, and explains that residents voiced many valid concerns over the tax, which would have meant about a one percent increase in utility bills for utilities sold within the Village of Spencerport.
Those who spoke said they would rather the village raise property taxes if it needs to increase revenue, because they can claim their village taxes on their income tax, Penders says. Others felt homeowners with high-end, new, energy efficient homes would not be hit as hard as those with older homes which might not be as energy efficient, and local churches would also be hurt by the new tax.
Penders said the village looked into imposing the tax to bring revenue to the village in the light of the constraints of the state tax cap. Under the formula which governs the cap, the village is facing a zero percent tax increase. “There’s no wiggle room to raise taxes, so we will look into other ways to get revenue for the village,” he notes.
Despite the challenges, it is important to stay within the tax cap, which has been extended for another four years, Penders said, because if the village can stay within the tax cap for two years, “we don’t have to for the next two years.”
He says the village might consider other options for expenses like garbage disposal.
“We will continue to streamline our budget and explore other avenues to bring revenue to the village,” he says.
