The Bethlehem Town Board continues to hear from department heads and the Budget Advisory Committee options for scaling back the 2013 budget.
On Wednesday, June 27 presentations were given by the Department of Public Works, the Highway Department and Senior Services. Early estimates show a potential $3.5 million budget gap in the coming year brought on by a combination of factors.
“We are facing some very difficult budgetary circumstances this year, that’s going to necessitate some big changes. The (advisory committee’s) job is to come up with some ideas on how to approach this problem,” said Supervisor John Clarkson.
No decisions on were made at the meeting, but the information will play a role in the budget drafting process later in the year.
Potential ways to reduce costs and add revenue included raising water and sewer fees, ending leaf pickup and closing the town’s compost facility or transfer station.
Department of Public Works
According to Commissioner of Public Works Erik Deyoe, Bethlehem’s water supply by far exceeds demand.
The town uses an average of 5.4 million gallons of water per day and has 11 million gallons per day available. The majority of the water comes from the town’s two water treatment plants, but Bethlehem entered into a 20-year agreement in 2004 to purchase water from the City of Albany. At the time, water demands were high.
At $1.3 million in 2011, the contract now makes up 16 percent of the town’s water budget. It’s the second highest cost, exceeded only by personnel. In 2014, the contract stipulates the town must increase the amount of water it buys, adding a projected $450,000 in annual expenses.
Deyoe said Albany’s water is needed only on hot days when 11 million gallons can be used, but the town also stores water. He suggested a “pay-as-you-go” agreement with the city would have been more beneficial than the use it or lose it arrangement. In the final years of the current contract, he said the town could be paying Albany about $4 million per year for water it rarely has use for.
“We had to present (to the board) the reality of the situation and that’s the reality,” Deyoe said. “I’m not one to second guess or Monday morning quarterback previous administrations. At the time, with what we had to work with and the policies that were in place, it was not an unreasonable decision.”
The budget committee suggested a gradual rate increase for water and sewer to meet costs, as right now both funds are losing money. The committee said there would need to be a 19 percent rate increase in water fees and a 10 percent increase in sewer fees over three years to meet future costs.
Other options included reexamining the contract with Albany or selling water at a lower cost to other municipalities. Deyoe said lawyers have looked at the contract and the budget committee suggested proposing a buyout, but legal options are limited. As far as selling the water, there is a potential for an agreement with the Town of New Scotland if development there creates the need.
Clarkson said as great as the ideas are, setting up any new agreements would take time.
Highway Department
The Highway Department has an operating budget of $7.3 million, with major responsibilities including the removal of ice and snow, repaving and reconstruction of roads, maintenance and brush removal. Of that budget, nearly $1.4 million come from the Selkirk Cogen power plant PILOT. The expiration of that agreement next year will equal 30 percent of the department’s budget.
“Clearly the town would have to look at major reductions in some of those core services,” said Tom Clash, of the Budget Advisory Committee. “We didn’t try to quantify this or characterize it except to say that I think there are significant safety issues that the town could face.”
Members of the budget committee said they felt it was unreasonable for the highway department to take the entire hit, and the town should looks to spread the cuts.
Because of the mild winter, the town did save $90,000 in overtime and $40,000 in sand and salt purchases. The town could also see savings next year because of the current stock the town already has.
The department has also seen savings through attrition. Four positions have not been filled out of the 55 that are budgeted. This has resulted in a savings of $250,000.
Options to increase revenue include an increase in fees for residents to purchase compost and instituting a fee for fall leaf pick up. To reduce costs, the committee suggested deferring the purchase of equipment, eliminating the town compost facility, closing the town’s transfer station and eliminating leaf pick up altogether. Concerns accompanied each of those plans, such as an increase in illegal dumping of furniture and appliances and the cost to residents for a private service to remove leaves and debris.
The committee also looked at using a one-person plowing system and further employee cuts through attrition, but said a loss in the level of services could occur and the results could be dangerous.
“I think there are serious risks in any of these options we have considered … but regardless of the decisions, it’s clear to us that the highest priority for the Highway Department ought to be safety,” said Clash.
He said that involves maintaining the paving cycle of roads and continuing ice and snow control.
Senior Services
The budget committee did not come up with any recommended cuts to Senior Services, as it represents only 2 percent of the budget. The department is mostly staffed through volunteer labor and the not-for-profit Bethlehem Senior Projects contributes heavily to the department’s needs.
All of the services provided through the department’s many programs were deemed to be needed, especially as the seniors are expected to make up 31 percent of the town’s population by 2020. To increase revenues, the committee said raising the suggested donations for transportation services could help. Members also thought implementing a memorial program to purchase town benches or trees in a person’s memory could help raise funds.
