Arguing that the town still offers among the lowest taxes in the county, Bethlehem officials are set to vote on the proposed 2009 budget and a 6.89 percent tax rate increase.
The town board unveiled its $38.67 million spending plan for next year during its Wednesday, Sept. 24, meeting. The proposed budget is the first item on the agenda for the Wednesday, Nov. 12, meeting at Town Hall, which begins at 6 p.m.
The town board is expected to pass the budget.
The proposed budget constitutes a 2.8 percent spending increase over this year’s $37.63 million budget and an overall 6.89 tax rate increase for the town’s combined general fund, highway department tax rate, and water and sewer district tax rates.
The proposed tax rate increase would result in a $17.45 increase per $100,000 of assessed value. Supervisor Jack Cunningham said the average home assessment in Bethlehem is $285,000.
According to Judi Kehoe, the town’s outgoing comptroller who has taken a job with the Bethlehem Central School District, the tax levy increase is being proposed at 6.89 percent. However, the 6.89 percent increase combined with the expanded assessment base will result in an increase of 7.3 percent in revenues to the town from property taxes, she said.
Cunningham has said on several occasions that balancing this year’s budget was difficult on many different levels, citing a bad economy, poor consumer confidence, and the challenge of balancing `what was desirable and what was absolutely necessary` for the town.
The supervisor said that a large chunk of the budget was going to pay for town employees and their benefits, but that `our employees in Town Hall are our biggest assets` and that the town has to be as committed to them as they are committed to the town.
At the proposed budget’s public hearing on Wednesday, Oct. 22, Cunningham told residents that not all tax increases are equal.
The supervisor argued that a much smaller tax increase in other municipalities resulted in a much higher actual dollar amount than what is paid in Bethlehem. Cunningham said town residents enjoy a high level of service for a fairly low dollar amount.
`Property taxes are the only revenue stream over which the town board has control,` Cunningham said. `The property tax revenue accounts for 27 percent of the proposed 2009 town budget.`
Cunningham went on to say that sales and mortgage tax revenue makes up 31 percent of the town budget and that the town has to draw from its fund balance to meet its expenditures each year. The town has drawn approximately $4 million since 2005 from its fund balance, which he likened to using one’s savings account to balance a checkbook.
The supervisor warned that the town is taking a proactive approach and constantly looking for new revenue streams to avoid massive budget deficits like neighboring municipalities such as Colonie.
Most of the criticism from a handful of residents at the meeting was targeted at the size of the actual increase in the face of a potential economic meltdown nationwide.
Board member Kyle Kotary said he has heard fewer budget complaints this year then in the past.
`In total, I think the board has received fewer than 10 e-mail and call complaints about the budget out of 33,000 plus residents and over 13,000 taxpaying households,` Kotary said. `That’s actually fewer than in each of my previous two years on the board.`
Kotary said the actual dollar amount residents are paying is more important than the percentages attached to the town budget.
`The real story is that people in town are paying some of the lowest taxes per $1,000 in the entire county, and the lowest among like-sized municipalities and we’re known for some of the best, if not the best government services, schools and quality of life,` Kotary said. `Again, all percentages are not equal and percentages don’t tell the story, dollars do.“
