During the Finance Committee meeting on January 14, Director of Finance Mark Sullivan reported that certified property taxation for the five-year period spanning FY21 to FY25 has remained $14.5 million below the allowable tax cap.

City Council adopted $9.9 million less in property taxes than permitted under the budgetary tax cap during this period. While the cap allowed for an increase of $22.4 million, City Council approved only $12.5 million in property tax increases.

Sullivan says that further reductions occurred during the annual certification process conducted by the New Hampshire Department of Revenue Administration (DRA). Adjustments in state revenues and other factors reduced property tax increases by an additional $4.6 million, bringing the total property tax increase from FY21 to FY25 to $7.9 million, or $14.5 million below the allowable tax cap.

From FY21 to FY25, the percentage increase in DRA-certified property taxation was 11.7%, averaging 2.34% annually. By comparison, the Consumer Price Index (CPI)-All Urban increased by 19.96%, or 3.99% annually, over the same period. Rochester’s certified property tax increases were 8.26% lower than the CPI-All Urban.

These results highlight the City’s commitment to responsible fiscal management. Through careful planning and collaboration between the City Manager, School Board, and the State of New Hampshire, the City of Rochester continues to provide quality services while keeping tax increases as low as possible for residents, delivering budgets that comply with the tax cap ordinance and remain below national inflation percentages.

Click here to watch the presentation.