This is in response to an article that appeared in FOSTERS:
Rochester mayor says city has ‘relatively low tax rate’
After further study of Mayor Larochelle’s presentation on June 3, 2008, the Rochester Concerned Taxpayers Association believes that the Mayor’s assumption about the tax burden on the Rochester taxpayers is misleading. The problem with making comparisons like the Mayor did Tuesday night, is it assumes that there is a belief that people will look at that data and say, oh, we want to be just like all the other New England states. The reality is, most people who live in Rochester like the advantages of a lower tax burden. However, we think that our tax burden in Rochester is already too high. Attempts to pass on any tax rate increase greater than $1 will place undo hardship on people who are already struggling to keep their heads above water.
It’s also important to understand that Rochester does not enjoy the median income that the Mayor pointed out. Our median income is much lower ($47,324/family of 4). We’d like to know if the Mayor factored in people working in Maine and Massachusetts. Anyone working in either of those states are paying income taxes, so that actually brings people’s incomes down even further. This is not to mention the gas (60% increase) and cost of tolls (50% increase) for commuting. 64% of working people in Rochester commute outside of Rochester to work – 57% to another NH community and 7% out of state (these people pay an income tax).
Factor in a 5% rise in food, over 100% increase in home heating fuel, 6.9% increase in healthcare cost, etc and we believe the Rochester taxpayer absolutely cannot take on an additional financial burden of even higher property tax bills than they already have.
Everything that goes with city or town spending has to be measured (compared) against the taxpayer’s ability to pay. Comparisons to other states and communities mean nothing when the people paying the bill simply don’t have the ability to sustain local government’s level of spending.
Here are some startling statistics for Rochester:
– From 2004 – 2008 property tax revenues collect per year have increased by just over 73% ($13.4 million/2004 – $23.5 Million/2008)
– From 2004 – 2009 City spending is up just a little over 50% ($21.5 million/2004 – $32.2 Million (proposed)/2009
– School Lunch program is 68% supported by a federal grant – this means we have a lot of people in Rochester who qualify for some sort of subsidized lunch for their children
– 6.3% of Rochester families fall below the poverty level (Economic & Labor Market Information Bureau, NH Employment Security, 2007)
– For a family of 4, it requires $49,080 (after taxes) for life’s basics in Rochester (Economic Policy Institute). This will surely change when we all start paying $5 + a gallon for home heating oil and gas for our cars…
– 22% of 4 person families in Rochester fall below the basic family budget level (Economic Policy Institute)
The taxpayers of Rochester have no way of controlling the price of the gasoline, heating fuel, food and all items transported to local retail facilities. This is very frustrating. We do, however, have a greater control over the pending tax rate increase and are exercising that control. The Mayor can attempt to paint a rosy comparative picture for Rochester taxpayers; however, taxpayers truly don’t care about comparisons. They care about how much property taxes are increasing and about putting a stop to that increase.
Robert Gates
Co-Chair and Spokesperson
Rochester Concerned Taxpayers Association