Jamestown’s tax rate is proposed to be unchanged from last year with a small tax levy increase proposed in Mayor Eddie Sundquist’s 2023 budget proposal.

The $38.68 million budget is a $19,000 increase from the 2022 budget and comes with a proposed tax rate of $23.69 per $1,000 of assessed valuation. The tax levy is proposed to increase from $16.16 million to $16.17 million. The budget also projects a 5% increase in sales tax revenue based on what Sundquist said is strong demand, online sales tax collections and federal stimulus money that creates a robust consumer spending environment.

“As has been the case for every year of my administration, there will be no tax rate increase for city of Jamestown residents,” Sundquist said in his executive budget statement. “All due to the settlement of union contracts, conservative budgeting, and new programs implemented by my team. The growth in unrestricted fund balance, which now meets the industry standard, has given the city breathing room. In this upcoming year, I will be proposing a new fund balance policy, which will ensure both that we have adequete reserves in a rainy day fund, while also allowing us to spend excess fund balance on needed capital expenses, without the need to debt finance those projects.”

Sundquist proposes an additional building maintenance mechanic in the budget to help maintain the city’s building story, a deputy director of public works to help oversee ongoing infrastructure projects and a new parks assistant to oversee parks improvements that include the JTNY Powerhouse Skate Park, Riverwalk Bike Path and the possible addition of two splash pads to cit yparks.

Having nearly $9 million in unspent stimulus money helped take some of the pressure off the 2023 budget, but the city finds itself in a better financial position due to a pair of non-stimulus developments. The city has seen more 170 employees sign up for the new Medicare Advantage plan, with none of the employees who have switched from city-based retiree health to Medicare choosing to go back. That change has saved the city $1.61 million over the past year, while retirees will see no change to base premiums for a second consecutive year.

The city is also seeing a bigger increase in its taxable assessment, which helps keep the tax rate the same while the tax levy increases. The tax base is projected to grow 6% for 2023, backing up 4% growth in 2022, 1.9% growth in 2020 and .6% in 2019.

“However, we are not without challenges. The city is still facing over $160 million in unfunded healthcare and pension costs for retirees,” Sundquist wrote in his executive budget statement. “National inflation rages on, impacting the finances of both the city and its residents. Now more than ever, we must use this time to retool City government and find cost-savings wherever possible, using Federal Recovery Funds as a shot in the arm for economic development and growth.”