BALMAT — Fowler property owners will see a 33 percent jump in their town taxes instead of an expected 3.5 percent increase because of a $226,406 refund paid by St. Lawrence County to Gouverneur Talc.
"We were under the impression it was going to be spread over two to three years. They put it all on us this year," Supervisor William H. Lutz said at a Town Council meeting Tuesday. "A lot of people have lost their jobs."
Under a court settlement of an assessment challenge of 26 of its properties, Gouverneur Talc received a refund of $857,834. Gouverneur Central School paid $472,615 and the county refunded the company $385,219, including the town's portion. Gouverneur Talc announced earlier this year it will stop mining in the town because of declines in its market.
"We're going to see more of this in the future. Who knows what's going to happen with St. Lawrence Zinc?" Assessor Robert G. Andrews Jr. said. "We're headed into troubled waters."
The Town Council knew property owners were responsible for the refund but expected to hear details before taxes were due.
"We had no bill," Councilman Rick W. Newvine said. "We believed there would be a timetable for the payback."
But Legislator Alex A. MacKinnon, R-Fowler, said the town should be responsible for looking after its own affairs.
"Folks, you lost the lawsuit. You knew you were going to have to pay it," he said. "There's no sense in worrying about the past. What can we do about it now?"
Mr. Lutz will check today on whether the county can pull Fowler tax bills from the mail so the town can borrow over five years to pay back the money. However, the prospect seemed unlikely. Although Fowler has only a handful of zip codes, which is the way tax bills are sorted, its property owners live across the country.
It also is probably too late to have the county Legislature divide the payment up over several years, as it has done in the past for others.
The town's adopted tax levy was $650,000. With the money due the county, it will rise to $876,406. That additional amount was added automatically to Fowler tax bills by the county treasurer's office, which generates the bills.
Town officials estimate the average property owner will pay $100 to $300 more in taxes because of the refund, which includes 9 percent interest to the county.
The county spread the repayment over sections of the town's budget, such as in highway and the fire district, rather than as a separate chargeback. Overall, the bill represents a 13 percent increase because county taxes, which are included as a line item, dropped.
Fowler's dilemma will help others down the road.
In the future, the county will contact supervisors in the fall to avoid any surprises about what's coming, Treasurer Robert O. McNeil said when contacted before the meeting.