At a special meeting of the Oneonta Common Council Wednesday, Oct. 29, members continued discussions about exceeding the tax cap and the role of tax exempt properties within the city.
Virginia Lee, the city’s finance director, summarized a memo regarding the city’s tax roll. She said the city has 3,563 parcels on the tax roll, 3,331 of which are taxable and 232, or 6.51%, tax exempt. Parcels and assessments are different, she said, and the total assessed value of all properties on the tax role is more than $941 million. The exempt values make up more than $445 million.
More than $266 million of the exempt values come from Hartwick College and SUNY Oneonta, in addition to city-related buildings, school districts, religious organizations, hospitals and nonprofits. These make up 88% of the exempt assessed values, Lee said. Many have PILOT agreements attached to them, and several would one day become taxable after the PILOT concludes, Lee said.
“Expansion in the city is restricted by its boundaries,” Lee said. “The pandemic proved beyond any doubt that how vital the colleges and the nonprofits are to our area, and the combination of the exempt properties, in my opinion, are vital to the composition of the city. They are vital in making the city of Oneonta who the city of Oneonta is.”
She added that if the city did not have the colleges, but instead taxable properties in place of it, it would take 2,016 average residential properties or 856 average commercial properties to replace the assessment.
She said the colleges and other exempt organizations offer pathways for jobs, disposable income, visitors, sales tax and the housing market, among other things.
“The public conversation about the exempt properties in the city of Oneonta going on, I think, needs accurate information, and that’s why I thought it was important to repeat this,” Lee said. “As I’ve stated in previous meetings, I believe that the best option for creating new revenue sources is economic development.”
This development, Lee added, could consist of Market Street development, creation of new small businesses and continued support for existing local businesses. She said “history is proven when jobs and population are successfully and productively brought into the area, all else follows.”
She added that the city should seriously consider implementing an occupancy tax, expected to be $400,000, and paid parking, potentially generating a 16.2% tax levy increase. She said again that her recommendation to the council is to consider a $600,000 tax levy increase.
Every year, she said, the ask will be greater because the city cannot keep up with its various expenditures. The cost of retirement, staff, inflation and the cost of health insurance present certain challenges.
For residential properties, taxpayers could see a range in tax increases from $50.85 to $159.32 if the city went from a tax cap of $192,000 to $600,000.
Lee said the services the city provides are “enjoyed by many,” but they do require funding.
Cecelia Walsh-Russo, D-Second Ward, asked where the misinformation regarding tax exempt properties stemmed from. Elayne Mosher Campoli, D-First Ward, said she has heard a lot of misinformation about taxable properties versus tax exempt properties in the city, and said she thinks it is due to people confusing taxable parcels and how much of the land it covers.
“We as council members have a responsibility to make sure that we are talking with our constituents about this, because I have had several conversations recently,” Mosher Campoli said. “I’ve posted information about this, and people are really appreciative of the opportunity to understand this information better.”
Lee said the average tax bill in the city in 2025 was about $1,490, adding up to about $124 a month.
Don Mathisen, D-Eighth Ward, said he believes the city should stick to the property tax cap.
“We have a 20% poverty rate in the city of Oneonta,” Mathisen said. “Not everybody can afford these increases.”
After Lee reviewed the memo, the council reviewed different budget requests to examine different areas for improvement, including public works equipment, park amenities, electric vehicles and building modifications to places like City Hall.
Regarding public works, Mosher Campoli addressed concerns about snow removal. Public Works Director Chris Yacobucci said there were requests for rentals regarding snow cleanup. Mosher Campoli said while there may be specialty pieces of equipment the city does not need to purchase, it may need to use them once in awhile to ensure safety.
Kaytee Lipari Shue, D-Fourth Ward, later asked if the city could establish a winter supplies reserve to authorize it when necessary. Lee said reserves are only for equipment and capital improvements.
Lipari Shue suggested funding a coordinator position for downtown events, someone who could act as a liaison in the role, suggesting that the city not fund the Neahwa Park Summer Concert Series and shift the money to the new position. Yacobucci said he and the city clerk already manage a lot of the coordination and was wondering what this person would do that is not already done.
Mosher Campoli asked how the role could overlap with someone who could handle city communications, which would take place year-round.
The meeting was ongoing as of press time.