$2M hike in property taxes eyed.

• Jurisdiction: United States
• Date: 27 April 2010

Byline: Nick Kotsopoulos

WORCESTER - City Manager Michael V. O'Brien will include in his fiscal 2011 municipal budget a recommendation to tap into the city's unused tax-levy capacity, raising an additional $2 million in property taxes to help finance a $20 million citywide program for street and sidewalk repairs, according to City Hall sources.

That tax increase would be in addition to the allowable 2.5 percent tax increase the city can levy each year under state law.

Worcester is roughly $12 million under the limit of what it can raise in property taxes under Proposition 2-1/2. That reserve has been built up over the past 15 years when previous city councils chose not to tax to the maximum allowed.

As a result, the City Council is in a position where it can raise taxes in additional to the allowable 2.5...