by David Flint
The Stephentown Town Board has come to realize that staying within the State “Tax Cap” is not feasible and not wise. At their regular meeting on Monday the Board overrode the 1.6% tax cap and adopted a budget for 2015 with a tax levy increase of 9.7%.
[private]Two weeks ago at the budget public hearing the Board started out with the premise of somehow keeping to 1.6%, but it soon became plain there was no way to prudently do it. Even taking $130,000 from the Unexpended Fund Balance and keeping salary raises to 1.5% and making other cuts left them with a 6.4% levy increase.
How could they keep going with tax increases of less than 2% when costs for fuel, electricity, State Retirement, health insurance are way above that, they wondered. To balance the current year budget and keep below the cap, they took $37,600 last year from the Fund Balance. Now there appeared to be consensus that that was a mistake.
They had been reluctant to raid the Fund Balance last year as much as they did, especially in the face of some bridge repairs or replacements that will soon come due. They had contemplated at that time overriding the cap and going with a 4.8% tax increase. Eckhardt now said that that is what they should have done. Councilman Bill Jennings said that Town Boards in the past had made a habit of raiding the Fund Balance to keep taxes low. The current Board, he said, corrected that but in the past few years, “We have skidded.”The Board agreed that they had under budgeted in a number of categories including fuel and Social Security.
“You’ve been keeping taxes low, but there comes a time to pay the piper,” commented Highway Superintendent Aldy Goodermote. Town Supervisor Larry Eckhardt agreed. “You can skin that cat only so many times,” he said.
Paula Dibble, one of the few members of the taxpaying public attending the budget hearing, said, “As a taxpayer I don’t want higher taxes. But you can’t keep going to the well. You have to have a cushion. If you keep taking stuff out of the cushion, there won’t be anything there.”
By the following week they had reduced the amount from the Fund Balance to $46,000 and that mainly to cover a one time catch-up payment of about $30,000 to the State Retirement Fund, necessitated because one employee thought he could opt out of the plan; the State belatedly informed the Town that he could not.
The adopted budget includes projected expenses of $1,379,839, up 4.5% from the current year budget, and revenue projected at $599,000, down 2.6% from the current year budget.
Contributions to the Youth Program, Veterans, Seniors and the Historical Society will stay the same as in the current year – $17,000, $1,500, $11,700 and $6,000 respectively. The Library gets a 1% increase to $43,784.
It is estimated that the 9.7% levy increase will result in the Town property tax rate going from $8.61 per thousand of assessed value to $9.43 per thousand. Eckhardt pointed out, however, that the Town tax doesn’t account for much in the overall tax scene. School and County account for most of the property taxes.
Cash Flow Problem
Because the Town has had to pay out about a quarter of a million dollars to replace a bridge on Bert Hager Road, Eckhardt said it will be a very tight squeeze coming to the end of the year with enough money in the checking account to pay bills. The Town expects to be reimbursed most of that money from FEMA, but the time frame for reimbursement is anybody’s guess. There may have to be some short term borrowing. Jennings urged that the Board prepare for that possibility, start the process and find out what the options are. He suggested the NYS Association of Towns could be a resource.
New Phone System
The Board received four proposals to design and install a new phone system for the Town Hall. Priority Connections from Cicero, NY, wanted $4,824.50 to do the job, Grace Com Communications from Schenectady $4,987.07, Carousel Industries from Exeter, RI, $7,448.49 and Nacr, from an unknown location, $8,126.00. Alex Haley, acting as technical consultant, reviewed all the RFPs to verify that all specifications were met and recommended that the Board go with Grace Com Communications. The Board accepted that recommendation and passed a resolution to pay a 50% deposit in the amount of $2,493.54 for the equipment and for the installation process to begin. Alex Haley will be asked to serve as a sort of clerk of the works to make sure the Town is getting what they are paying for.
Meekins To Resign
Councilman John Meekins, who was elected to fill the Town Justice position held by Wes Edwards, submitted a letter tendering his resignation from the Town Board at the end of the year. The Board passed a resolution accepting his resignation and authorizing the Town Clerk to advertise the Town Board position. Resumes and letters of interest are due to the Town Clerk by December 5. The term of appointment would run from January 1, 2015, to the end of the year.
More Advertising
The Board also passed resolutions authorizing the advertising for the position of a cleaner for the Town Hall and for all other appointed positions that are expiring or vacant on December 31. Deadline for resumes and letters of interest is Friday, December 5.
Road Materials
In another resolution the Board authorized the solicitation of sealed bids to provide the Highway Department with materials for the maintenance of Town roads. Bid specifications will be available at the Town Clerk’s office beginning November 24. The bids are due to the Clerk’s office by December 5.
Appointments To The BAR
Having advertised two vacancies on the Board of Assessment Review, the Board received two letters of interest, one from outgoing Town Justice Wes Edwards and one from Andrew Maguire, long time Treasurer for the Stephentown Fire District. The Board passed a resolution appointing Edwards to a 5 year term to expire September 30, 2019, and Maguire to fill a term expiring September 30, 2018.
DEC To Provide Help With Culverts
The Department of Environmental Conservation is offering to assist the Town in replacing two culverts, one on Moore Hill Road and another on Calvin Cole Road. DEC’s interest is in making it easier for fish to swim upstream. Highway Superintendent Aldy Goodermote said the Town would also gain by improved drainage in those two locations. DEC will provide about $146,000 for the work on Calvin Cole Road.
Deposits & Spending
The Town Clerk turned over the sum of $513.13 to the Supervisor for the month of October. The distribution from the Office of the State Comptroller, Justice Court Fund was not yet known. The Transfer Station deposited a total $6,761.
The Board audited and approved claims in the amount of $16,939.74 from the General Fund and $16,598.64 from the Highway Account.
Meetings
The Board set their next workshop meeting for Monday, December 8, their next regular meeting for Monday, December 15, the Reconciliation Meeting for Monday, December 29, and the 2015 Organizational Meeting for Monday, January 5, 2015, all meetings to start at 7 pm.[/private]