Harmar's proposed 2022 budget could help homeowners but would face high deficit

Some Harmar property owners might pay less in taxes under the proposed $2.7 million budget for 2022, but it will come at a cost.

The proposed $2.7 million spending plan would increase the Homestead Exemption by $5,000, from $30,000 to $35,000. That move, though, could cost the township more than $500,000 in tax revenues.

The preliminary budget, passed 4-0 Thursday with Supervisor Linda Exler absent, would keep the real estate tax rate at 2.9 mills.

If approved, the Homestead Exemption increase would create a $576,000 deficit, acknowledged Supervisor Chairman Bob Exler. That money would have to be made up from the township’s savings.

A Homestead Exemption excludes a portion of the assessed value of qualified homes, thereby reducing the amount the homeowner pays in taxes. Under the proposed budget, a qualifying home in Harmar assessed for tax purposes at $100,000, for example, would be liable for taxes on $65,000 of its assessed value.

Supervisor Bob Seibert voted in favor of advertising the budget, but was against the additional $5,000 Homestead Exemption, claiming there was not a public meeting authorizing the increase.

Other board members pointed to the Nov. 4 meeting where the addition was authorized. But Seibert said only two members voted in favor and Linda Exler, who Seibert said was claimed to be the third vote, was absent. Members unable to meet in-person must phone in or connect through Zoom video for their vote to be counted, Seibert said.

Seibert said only 799 Harmar residents out 1,386 would receive the exemption.

“I don’t know how you can say you can have a tax cut when, at three public meetings, there wasn’t votes to advance that,” he said. “I don’t know how we went from $30,000 to $35,000 to be honest.”

Seibert said he would not vote to approve the proposed budget as it stands.

“You don’t cut taxes if we get a deficit that could put us on the path to going broke,” he said.

Exler acknowledged the deficit but emphasized how the township is lowering taxes. The township has been lowering taxes for the last six to seven years, he said.

Exler said the board is looking to do good by everybody by allocating money to the township’s resources, but the effort is becoming costly.

“We are close to not being able to cut taxes anymore. We are on a thin line,” he said.

The board will vote on the final budget at its Dec. 16 meeting.