Peru’s sewer system upgrade is almost complete; now it’s time to pay for it
By John T. Ryan
Peru – November 3, 2022 – The Peru Town Board unveiled its 2023 Preliminary Budget at a public hearing last evening. Peru residents have been watching the sewer system upgrade project for many months. Beginning in 2023, property owners in the sewer district will experience tax increases. The higher sewer tax rate follows increases in Peru’s assessed property values earlier this year.
The proposed 2023 tax rates per $1,000 of taxable value are General – $1.762, a decrease from $2.34 this year; Highway $2.239, a decrease from $2.36 this year; Water $1.038, a decrease from $1.39 this year, and Sewer $2.304 an increase from $.36 this year (+545%)
The 2023 budget includes an increase of $298,392 in sewer department expenditures, most of which are associated with paying principal and interest related to the sewer upgrade project. The town applied for and received significant grant funding for the project; however, Supervisor Brandy McDonald explained that costs escalated because of unanticipated construction issues, COVID-related cost increases, and other issues. In January 2019, the board passed a resolution authorizing borrowing not to exceed $4,618,418 for this project. In May 2022, it authorized borrowing $7,612,477.29.
There’s generally good news for taxpayers outside the sewer district. If their property didn’t increase in taxable value, they should experience a 15 to 16% town tax decrease. Even if their taxable values increased by 15%, taxes should still be stable or decline by 3.2%, depending on whether or not they own property in the water district.
The Peru Gazette compiled two examples. (Please note the use of the words “taxable value.” The examples take into account the reductions in general, highway, and water tax rates.
- A property inside sewer district #1 with a taxable property value of $150,000 in 2022 that did not increase in value would experience an overall 2023 tax increase of $148.95 (+15.6%).
- A property inside sewer district #1 with a 2022 taxable value of $150,000, with a 15% value increase to $172,500, would experience an overall tax increase of $314.17 (+33%).
Long-term borrowing is also affecting the Highway Department. For example, its budget includes $137,120 for principal and interest payments related to the Sullivan – Telegraph Road culvert replacement project.
The board will conduct a Special Meeting on Tuesday, November 15, 2022, to adopt the Final Budget. Its next regular meeting will be conducted on November 7th at 6 p.m.
Other than board members, town employees, and this reporter, no one attended this public hearing.
Posted: November 3rd, 2022 under Business News, Peru News, Peru/Regional History, Town Board News, Water & Sewer Dept. News.