Ulster County sales tax sharing agreements in limbo

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Hein (file): “Responsible leaders
will have discussions …”

KINGSON — The five-year contract which oversees Ulster County’s sales tax sharing ratio expires as of today, March 1st. No agreement has been reached yet, between county and Kingston city officials, over whether to reduce the city’s share of revenues.
Kingston has stood fast, insisting on renewal of the current terms for the next five-year cycle: 8 percent county; 11.5 percent city; three percent towns. According to Kingston Mayor Steven Noble, the county team under Executive Michael Hein refuses to consider status quo. Stalemate ensued.
Noble obtained support of the Kingston Common Council, which passed a memorializing resolution last week unanimously affirming the mayor’s position.
Two arguments were presented last month at the January 26 County Legislature’s
Ways and Means Committee, justifying cuts to the city: county safety net
takeover and increased municipal expenditures. Chairman Richard Gerentine
proposed 1.5 percent cut stems from negotiations made in 2001. No official
record exists, however, of such quid pro quo.
Statistical data provided by Hein’s office contained numbers which
later fell into dispute from city advocates. Hein’s figure of 37
percent increased taxes, and 34 percent increased spending for Kingston,
over four years, was corrected by Noble, who released official numbers
from City Comptroller John Toui last Friday. The actual figures are 17.38
percent tax increase; 11.42 percent spending increase, over four years
(2012-2016). Hein expressed concern about the sustainability of property
tax increases in Kingston because all of the benefit from the safety net
takeover by the county was used to increase general property taxes in
the city.
“I think we’ve already come out and had a clear conversation,” Hein said. There’s no question that the 17 ½ percent is the correct number. It’s still an extraordinary increase in expense, one that’s completely unsustainable.”
Hein said there’s still time to have conversations and come to a resolution.
 “I’m confident we can come up with things that work for everyone,” the county executive said. “Responsible leaders will have discussions, and in the end, all citizens of Ulster County will benefit.”
Noble acknowledged.
“The numbers that the county had were not correct,” the mayor said.  “It’s an important issue for us to address. The city has done a good amount of work to control its costs.” He underscored the need for operating revenue, noting that sales tax is the city’s second largest funding source.
“We’re really interested in seeing this come to an end,” Noble said. He recently delivered the county an executed contract stipulating status quo, for eventual review by the Legislature.  




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