Bayside Village Taxes Dropping Just in Time for The Holidays

A typical Bayside homeowner should see a slight drop in village property taxes this year because of a zero-increase tax levy and a decline in property values.

The Village Board approved a $9.2 million budget for 2013, which is a 4.8 percent decrease over last year's $9.7 million budget.

Village Manager Andy Pederson attributes the decrease to negotiations with the police and Department of Public Works unions.

"With the tools that we were given in the budget-repair bill, or Act 10, the non-represented employees were already paying their pensions," Pederson said. "When we had a 30-day window to negotiate with our unions, we negotiated a clause that they would contribute 67 percent of their portion of the retirement contribution portion in lieu of the village doing that."

In 2014, the DPW employees' contract will expire and they'll have to contribute 100 percent toward retirement costs, so Pederson said they agreed to begin contributing early in a tiered system, instead of having a quick hike all at once. He said police followed the same tiered-plan idea with contributions to their retirement program.

"When we while police are exempt from the requirements of Act 10, our police officers in the first year contributed approximately 25 percent, then 52 percent. They're going to go to about 77 percent share."

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The village's property tax levy for 2012 is $4.4 million, which is the same as last year. That breaks down to a tax rate of $7.71 per $1,000 of assessed value, up from the 2011 rate of $7.07 per $1,000 of assessed value.

However, that breakdown will affect residents differently depending on their home values.

The average assessed property value in Bayside is down by 7.9 percent this year.

Here is a look at assessed values, the village tax rate and village's property taxes since 2010:

For a home valued in 2011 at $338,769, that property owner would have paid $2,395 in taxes. If that home lost the average 7.9 percent in assessed value for 2012, that owner can expect to see a tax bill of $2,404.

"All throughout the North Shore, property values are down, as well as around the state," Pederson said. "Up until approximately two years ago, we were able to hold steady on property values. This isn't an issue that's particular to Bayside, it's an issue that the whole country has struggled with frankly."

The sanitary sewer and storm water fees are also increasing to $560 annually, which is broken down to $410 for sanity sewer and $150 for storm water management.

"The reason for that is in 2012, we took on significant infrastructure improvements, primarily the Pelham-Heath sanitary sewer project, which included man hole rehab and sanitary sewer lining," Pederson said. "We also fixed and repaired the drainage around Santa Monica Boulevard."

Property tax bills are scheduled to be in resident mailboxes by mid-December with the first payment due Jan. 31. Payments can no longer be made at M&I Bank, but will be accepted at Cornerstone Community Bank.