Stephentown Preliminary Budget Holds To Tax Cap

by David Flint
At a public hearing on Monday evening the Stephentown Town Board went through its tentative budget for 2013 and came up with enough adjustments to end up with a preliminary budget that stays within the 2% State mandated cap on tax increases. The Board is not finished with this budget, however, as some believe additional savings might still be found on the Highway Department side that could allow a bit less to be taken from the Unexpended Fund Balance.[private]The tentative budget before the adjustments showed a 6.2% rise in the tax levy, but Town Supervisor Larry Eckhardt said that at the opening that the Board had no intention of exceeding 2%. Adjustments included dropping the Youth Commission’s allocation to $17,000. The Youth program was budgeted this year for $21,500, but only about $13,000 was actually spent as of the end of September. Councilman PJ Roder explained that the swim program was dropped this year as being way too expensive for the number served. It is not expected to resume next year unless a fee basis can be arranged to make it feasible. The Library asked for $45,000, up $2,500 from the current year. That amount had been included in the preliminary budget, but at Roder’s recommendation it was cut back to $42,500. The biggest adjustment was to take $30,792 from the Unexpended Fund Balance.
The total of budgeted expenditures at this point comes to $1,261,972. Salaries in general will be raised by 2%, but the Town Supervisor and Town Board will receive no increases. Union employees in the Highway Department receive a negotiated 3% raise, and the same will apply to the Highway Superintendent. The salary of the Bookkeeper to the Supervisor will increase by $1,000 to $8,800, but that is offset by a decrease in the Supervisor’s Equipment budget.
The General Fund spending is reduced by 28%; the Highway fund spending increases by 17%. Much of that discrepancy is caused by moving Highway Department Employee Benefits out of the General Fund and into the Highway Fund, a move advised by a State auditor. The projected cost of these benefits, including retirement, Social Security, Workers Compensation, Unemployment insurance and medical insurance, is $86,637, up 21% from the current year. Cuts in the General Fund were also made to the Contingent Account, the Code Enforcement Officer’s contractual account and the Transfer Station. Most of the Highway Account costs, however, cannot be controlled by the Highway Superintendent, and the only suggestions the Board could come up with at this time was to eliminate maintenance of a few roads such as Bert Hager Road and Sprague Road.
One of the bright spots that Eckhardt pointed out is that Stephentown has no debt. Another is that General Fund revenues are expected to be up by 9%, including a projected 10% increase in Sales Tax and a 32% increase in Mortgage Tax. Eckhardt noted that much of the Mortgage Tax increase is the result of a lot of refinancing going on.
The Board passed a resolution authorizing the Town Clerk to post the Preliminary Budget on the Town website (www.townofstephentown.org). The Board will adopt a final budget next month, possibly at the next regular Town Board meeting on November 19 or earlier at a special meeting if necessary.[/private]