COLONIE Earlier this month, the Colonie Town Board passed a resolution adopting the proposed 2016 budget, a financial plan that represents virtually no tax increase for Colonie homeowners.
Under the plan, the tax rate will remain slightly less than .4 percent of property valuation, or $3.89 per $1,000. This is the fifth consecutive year the town has approved a budget that falls below the state-mandated tax levy cap of two percent. Proposed is a $1.8 million increase from 2015, bringing the 2016 budget to $87.3 million.
While the budget reflects a slight increase in the general fund property tax levy, that increase is offset by reductions in the election tax levy and an ad valorem tax levied by the Latham Water Department. An average homeowner within the town of Colonie will see property taxes drop by about 13 cents annually.
When Town Supervisor Paula Mahan took office eight years ago, Colonie was in rough financial shape. The town has managed to improve its fiscal standing since that time.
State Comptroller Thomas Dinapoli recognizing Mahan for sound fiscal management practices that he said have helped to turn the town around. As recently as 2013, Dinapoli identified Colonie as the sixth-most financially distressed community in the state due to its low cash reserves. “Despite its strong tax base, Colonie has struggled financially over the past decade,” he said. “The town is demonstrating significant signs of improvement.
Mahan and the Colonie Town Board believe this year’s budget continues to improve the town’s financial standing. Taxes remain even, while the fund balance surplus is expected to grow slightly to $3.5 million. The board also believes that the budget meets state property tax cap requirements to qualify for residential tax rebates in 2016 (expected to be issued in the fall).
“Our primary objective is to continue to strengthen the town’s financial position while maintaining an excellent level of services for our residents,” Mahan wrote in her budget message. “This includes focused efforts on public safety and the town’s Department of Public Works Departments to maintain and improve an aging infrastructure, which includes a five year extension of our Paving and Storm Water Improvement Plan. We are committed to building on the approximately $3.4 million fund balance achieved through 2014. For the foreseeable future, the town will continue to follow a conservative financial approach in order to meet economic challenges directly while keeping taxes low.”
The overall increase in the budget covers the costs of labor contracts, what the town is mandated to pay to the state retirement system benefits and the debt system, which are things the town has to pay every year
There are also overall increases in maintenance for costs of energy, snow removal, sewer management and storm water. For the second year, the budget accounts for a five-year $10 million paving plan to address infrastructure needs, along with a 10-year infrastructure plan for the Pure Waters and Latham Water departments.
This year saw several infrastructure repairs for both departments. The Latham Water District began a $1.3 million project to replace pumps, motors and electrical switching gears at its Mohawk View High Lift Pump Station. An overhaul of the River Road Pump Station is in the works, and the district has been replacing aging water mains.
Pure Waters upgrades included design for an overhaul of the Lisha Kill Pumping Station to reduced maintenance costs and increase efficiency, with a $1.2 million plan to repair the Wolf Road Pumping Station in the works. All of these are part of long-term repair plans.
A copy of the approved budget can be found on the town website.