The Town of Bethlehem adopted a 2010 budget Tuesday, Nov. 10, that weighs in at about $40.17 million and includes a tax rate increase of 2 percent, bringing the town tax rate to $2.77 per $1,000 of assessed property value.
The Town Board adopted the budget in a split vote, with Councilman Sam Messina dissenting.
Messina, who is leading Supervisor Jack Cunningham in the race for town supervisor before absentee ballots are counted, said during the recent campaign season that he would like to pass a budget without a tax hike, and would obtain that goal by seeking out efficiencies in every department and program.
I have voted for tax increases in the past, I may in the future. This year, I didn’t think we needed to do that, he said.
The other four Town Board members disagreed, saying that the increase is modest ($16.20 for the owner of home assessed at $300,000) and important to maintain vital services. The town will also tap the fund balance for nearly $1.7 million.
`The 2 percent increase was the right thing to do in August, it was the right thing to do two weeks ago and it’s the right thing to do today,` said Councilman Kyle Kotary.
`This budget protects our reserves to the extent we can at this point while allowing us to keep the services the residents of this town enjoy,` said Councilwoman Joann Dawson.
`These are flat times, you need a budget that reflects the state of the economy,` said Councilman Mark Hennessey, who has said he is pleased the budget will play down the town’s reliance on fund reserves. `This us a sound budget, it will get us through to next year.`
Several significant changes were made from the budget unveiled in September. A cost of living increase for town employees was decreased to 1 percent from 1.5 percent for a savings of $21,316. Elected and appointed officials will still not see a pay increase.
Messina singled out this element for disagreement.
`I think we could have been able to keep that with some efficiencies,` he said of the cost of living increase.
In addition, pavilion work at the Colonial Acres Golf Course will be deferred at a savings of $50,000. The construction of a new maintenance garage there will be covered by the Parks and Recreation Department’s Set Aside Fund, saving the general budget $40,000.
Cunningham said that it has been a struggle to keep the budget down in the face of rising costs. In 2010, the cost of pension contributions will rise 34 percent, the cost of health insurance will rise 4 percent and the cost of Medicare contributions will rise 27 percent, he said.
`We have not control over those increases,` he said.
Cunningham also argued that in many areas spending would be decreasing when big-ticket equipment and capital improvement leases and bonding are factored out. The Highway Department is scheduled to purchase $360,000 worth of equipment, the Water Department $725,000 worth of upgrades and the Sewer Department $395,000.
He also mentioned that the town’s recent credit rating upgrade to AA would be a boon for the town, especially as it prepares to issue $8.1 million in general obligation bonds later this month. Getting better interest rates on these bonds would save the town between $240,000 and $330,000 over the life of the bonds, which is more than the 2010 increase to the tax levy.
`We’re actually getting paid back over the long term on this.`
Messina took issue with that argument, noting that those savings will be realized over the life of the bonds, not all in 2010. He said he figures taxpayers will only save about $13,000 in 2010 alone.
`I think that is absolutely terrific,` he said of the new credit rating. `I think our comparisons are wrongthere’s no net savings to taxpayers.`
The bonds are for several infrastructure projects and will be split up to last the life of the particular element that is being bonded. The life of the various bonds should be between 10 and 28 years, said Comptroller Suzanne Traylor.
Cunningham warned that future years would bring about some tough choices for the community, as high unemployment may continue and the town’s infrastructure deteriorates. Of particular note is the New Salem Water Treatment Plant, which Cunningham said would be rendered obsolete by new EPA regulations in 2012.
`The community is going to have to look very closely at replacing that building,` he said.
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