Finance director briefs council on tax-cap mechanics and reassessment tradeoffs; reval could cost $600K–$1M

Finance presenter explained the New York State property-tax cap and emphasized that “the tax cap limits the levy, not the tax rate,” clarifying that levy is the city’s total dollars while the tax rate depends on assessed values.

Using recent years’ data, staff said the highest allowable levy in 2026 could have been $24,900,000 and the city planned a proposed levy of about $24,800,000, leaving capacity for contingencies. Councilors asked whether there is value in always maximizing the levy; the presenter said not necessarily and noted past practice left unused levy capacity to avoid errors and provide flexibility.

Council then discussed reassessment. Accounts staff said a citywide revaluation would improve equity across neighborhoods but is expensive: the presenter estimated a reval “would still come in around $600,000” now and could approach $1,000,000 if deferred and the underlying data become older. Members discussed options for phased revaluation and the potential for applying for limited state funding to offset costs.