For the third year in a row, Supervisor John Clarkson has released a preliminary budget showing the town is in a financially stable condition.
Clarkson and Comptroller Michael Cohen presented the initial spending plan at a Town Board meeting held Wednesday, Sept. 30. The proposed 2016 budget increase for homeowners would be approximately 71 cents, based on an assessed property value of $250,000.
“The tax rate is going up more slowly because we continue to have growth in the tax base,” said Clarkson, adding the increase is negligible this year for most homeowners.
Similar to last year, the town’s proposed budget is $40 million. There is a spending increase of less then 1 percent, or about $337,000 over 2015. This is mostly to help pay for the rising cost of employee benefits and to allow for a 2 percent cost-of-living raise. As the largest part of the budget, wage costs will rise to a total of $15.8 million.
“We think 2 percent COLA is really very richly deserved,” said Clarkson. “This is keeping our employees at a level with inflation. There are other raises employees can get, like step increases, but many employees are at the top of their grade for whatever reason, so the only increase they get is the COLA.”
The budget proposes a tax rate increase of .07 percent, This is due to an increase in property values and the phase-out of several Payment in lieu of Taxes agreements. The tax levy is .05 percent.
Clarkson told board member they will have to decide this year whether they will choose to end a decades-old front footage fee.
Cohen previously explained as new homes were built in the 1970s and ’80s in underdeveloped parts of town, new sewer lines were also needed. Town officials needed to find a way to pay for this new infrastructure, and unlike today, the developers were not made to foot the bill.
The town decided to bond to pay for the projects, since at the time they could not get federal aid. It was decided the cost for the new sewer lines should be passed on to the homeowners.
Residents in those homes were billed with an extra charge on their taxes called a front footage charge. This was determined by measuring the curb of their property by feet and charging residents a certain amount per foot based on the measurement.
Cohen said not everyone in town have this extra charge, and most that do, don’t realize it. The bonds for the sewer work were paid off in the mid-2000s, but the charge has continued to be included in the tax bills of some residents. It was decided to phase-out the charge last year.
Clarkson said the average tax increase could change for residents depending on what is decided by the board.
The presentation called for no cuts to the budget, but did include investments in the town as the Capital Plan calls for water and sewer upgrades to be made by 2020. There will also be additional community improvements, like the installation of new sidewalks and the implementation of the Delaware Avenue Enhancement Study.
Also outlined were the investment plans for the town through funds received through the state Local Government and Efficiency Award. Money received from that award will continue to fund grants for technology upgrades, sustainability efforts, tax relief and various community enhancement projects. However, $30,000 will now go toward a study and implementation measures for needed security upgrades at the town court and police department.
The proposed budget includes the anticipated $673,000 increase in sales tax revenue but a $150,000 drop in mortgage tax revenue.
Clarkson also lauded the instillation of solar panels at the former town clay mine site. The panels were installed at no initial cost from the town through a partnership with the New York State Energy Research and Development Agency. The panels will provide 4.6 million kWh of solar power generation. There’s an estimated first-year savings of $150,000 with a total savings of $5 million to $7 million over 20 years.
Last year’s $39.7 million budget held a tax levy increase of 1.8 percent, below the state tax cap for the town. However, many homeowners saw a reduction in their tax bills following the town-wide reassessment completed in early 2014. The savings will continue for many during the 2016 budget season. About 6,000 homeowners, or 62 percent, saw their tax bills lowered.
Continued budget discussions will take place at the Wednesday, Oct. 14 Town Board meeting. The public hearing will take place on Oct. 28.
