Ogdensburg budget proposal raises levy as city weighs tax-base growth

Ogdensburg's proposed 2027 budget would increase the city's tax levy while lowering water and sewer rates. City officials are also pointing to the city's limited taxable property base as a continuing pressure on municipal finances.

The proposed budget totals about $22 million. It includes a 3.82% increase in the tax levy, or about $209,310, bringing the levy to approximately $5.69 million. The proposed tax rate is $15.42 per $1,000 of assessed value, compared with $15.16 in 2026. For a home assessed at $97,000, the increase would be $34.10.

The tax increase would be more than offset by reductions in residential water and sewer rates. The proposal does not include staff cuts, layoffs or service reductions, according to budget coverage.

A city budget analysis places Ogdensburg 56th among 61 New York cities for taxable property value per person and 59th per property. The analysis also says the city spends 32% less per person than the average New York city. The rankings were presented as part of the city's budget discussion.

Tax base and development

Ogdensburg's tax base includes many exempt properties, including the St. Lawrence Psychiatric Center and two state prison properties. The state owns about 30% of the city's land, and the city has supported legislation seeking payments in lieu of taxes from the state.

The proposed levy increase reverses a five-year financial plan calling for the levy to decline by $117,000 annually. The 2025 adopted budget cut the levy by 2% to $5,599,055. The 2026 tax rate fell mainly because of reassessment rather than lower total taxes.

City development efforts include the Diamond National site and the Shade Roller site. J.E. Sheehan Contracting was named the preferred developer for the Diamond National property, while the city attorney advised using a competitive process for the Shade Roller site. The state has provided $33 million to Ogdensburg over the past several years for downtown development and other projects.

What happens next

Mayor Mike Tooley has said the proposed tax increase could be reduced before the budget is adopted. He has also said the city may eventually face a choice between service cuts and a larger property tax increase if it cannot continue limiting increases.

The city manager is required under a 2024 council agenda's charter excerpt to submit the budget by Nov. 1. A public hearing must be held by Dec. 15, and the budget must be adopted by Dec. 20. Budget work-session information is posted on the City of Ogdensburg website.