Burlington Faces Tax Hike To Cover Pension Underfunding
POSTED: 10:43 am EDT May 13, 2006
BURLINGTON, Vt. -- Burlington's new mayor said the state's largest city faces a tax increase because there hasn't been enough money set aside to cover employee pensions. Over the past two years, Burlington has underfunded the pension system by nearly $2.8 million.Mayor Bob Kiss said he'll ask for a tax increase to cover all of this year's pension requirements and to begin reducing previous obligations. Kiss has formed a task force to help him deal with problems in the city's budget. Former Mayor Peter Clavelle's administration had estimated the city would be $1.7 million short of meeting its budget. The state has since approved giving Burlington authority to collect a 1 percent local sales tax that is expected to generate $800,000.
So now here's a little list I've come up with of more money Burlingtonians will have to dole out to the government:
- Local option sales tax
- Burlington Electric rate increase
- Increase in Dept. of Motor Vehicle Fees (starting July 1st)
- Some Burlington residents (including our home) will be or have already gotten from the Assessors office, a 're-estimate' of the property reappraisal - our home's estimate increased by $3,000
- And of course, the extra taxes as mentioned in the above article that our Mayor will be asking us for very soon...