Manchester aldermen told to expect only a 1.63% rise in tax cap next yearBy PAUL FEELY
New Hampshire Union Leader
January 16. 2018 2:06PM
MANCHESTER — The city’s finance director has notified aldermen of the final urban consumer-price index for calendar year 2017, a key component used in determining the tax cap Mayor Joyce Craig will operate under when drafting the first municipal budget of her administration.
City Finance Director Bill Sanders sent a letter last Friday notifying aldermen that the final urban consumer-price index for calendar year 2017 was 2.10 percent. The city’s tax cap is based on a three-year average of the urban consumer-price index.
Combine the 2.10 percent increase in 2017 with a 2.10 percent increase in 2016 and .70 percent in 2015, and the three-year average comes to 1.63 percent. The tax cap controls the amount of property tax revenues the city can raise in the budget.
Under the city charter, the mayor must propose a city budget within the tax cap limitations. The charter gives aldermen the ability to override the cap.
The Labor Department on Friday said its Consumer Price Index — excluding the volatile food and energy components — rose 0.3 percent last month, as prices for new motor vehicles, used cars and trucks and motor vehicle insurance also increased.
That was the biggest advance in the core Consumer Price Index since January 2017, and followed a 0.1 percent gain in November.
Sanders and city aldermen are expected to discuss the three-year average and tax cap implications when the full Board of Mayor and Aldermen meets tonight at 7:30 p.m. at City Hall.