Town Board members adopted next year’s budget totaling almost $7.23 million, which stays within the tax cap while tapping about $70,000 less from fund balances.
Board members unanimously approved New Scotland’s 2015 budget during its meeting Wednesday, Nov. 12. The plan holds a property tax levy increase of 1.92 percent. The average town homeowner with a property assessed at $250,000 would see their tax bill increase almost $10, according to Deputy Supervisor Douglas LaGrange. The budget appropriates about $263,000 from fund balances, and includes almost $4.37 million in revenue outside of taxes levied.
Town Supervisor Tom Dolin was absent from the Nov. 12 meeting due to an illness, according to town officials.
LaGrange said there were some “little tweaks” from the supervisor’s tentative budget, but nothing major.
“It was a great process, and we were fortunate to have a good board and a lot of good employees to come to the final conclusion for the budget for next year,” said LaGrange.
The most significant change was giving all town employees a 1.7 percent cost-of-living adjustment, including elected officials. The four Town Board members however are receiving an 8 percent salary increase, which totals $8,740 per member.
Appropriations across the town’s four main funds, excluding special districts, are increasing about $47,400, or 0.82 percent. The overall budget totals nearly $7,227,000, which is a 0.97 percent increase, or just over $69,000.
Retirement expenses are projected to be relatively flat next year, but medical insurance is estimated to increase around $21,500.
Additional revenue from the proposed tax increase is less than $50,000. Revenue outside of the taxes is increasing $91,000 and totals nearly $4.37 million. Sales tax revenue is continuing to grow steadily, but mortgage taxes fell below estimates for this year and are only starting to rebound.
Staying under the state-mandated tax cap is important because of public perception about exceeding it, according to LaGrange. He said the board members had been trying to conservatively budget before the tax cap was implemented.
“Unfortunately, the tax cap was designed to corral some of the spending in other places, so it almost penalizes a town or municipality like us who has always worked very hard to keep the tax rate from going up any great degree,” said LaGrange.
He said the board is always looking to keep any tax increase “very modest,” while continuing to provide services to the community. Next year’s budget does not hold any layoffs.
Town officials are projecting around $2.69 million remaining in its fund balance, which is equal to 37 percent of its 2015 budget. This year, the town budgeted $334,000 from fund balances, but its four main funds had $146,000 going into reserve accounts.
Dolin previously said the town has a “substantial” amount of reserves built up, so dipping into it would keep the town within a “reasonable” amount.
