The Town of Inlet passed a Preliminary Budget for 2015 at its last budget session and is planning to present it to the public at a hearing scheduled for November 11 at 7:45 p.m.
The Tax Rate for 2015 is $5.72 per thousand of assessed value. This is up from $5.53 in 2014, a 3.39% increase.
This rate will be used in raising property tax revenue for the Town’s General Fund, along with the Highway Fund, and the Fire and Ambulance Fund.
The individual budgets break down as follows:
Total General Fund: $1,670,147, which is down $6,533 from 2014.
Total Highway Fund: $488,978, which is up $22,762 from 2014.
Total Fire and Ambulance Fund: $115,000, which is up $1,970 from 2014.
This budget year has posed some challenges, according to Town of Inlet Supervisor John Frey.
“The big problem for us is the fact that revenues are down $25,000,” he said.
The town also has $25,000 less to apply from unexpended fund balance in reducing taxes, he said.
That’s because the town has been trying to live under the state mandated tax cap for the past three years.
“We have less money in the bank. The unexpended and reserve funds have shrunk,” Frey said.
Effectively $135,000 in unexpended funds will be applied to reduce taxes, $25,000 less than the previous year. The funds just aren’t there.
Inlet is waiting to hear whether it was successful in securing two grants amounting to $50,000. Either way, budgeting will be tight, according to Frey.
“We’re cutting to the bone with very little money left at the end of the year,” he said.
Supervisor Frey said it’s hard not to be critical of the governor for putting municipalities in predicaments similar to Inlet’s.
“The governor is using the wrong figures when he applies 1.56 percent as a cost of living increase,” he said.
That is the federal number used for Social Security, he said. Governor Cuomo uses it, and it simply does not provide a realistic benchmark for budgeting across the state.
“When was the last time anyone in this area paid the national average for gasoline, heating oil or propane? We don’t live according to these national averages. To expect a state-wide, one-size-fits-all for allowable tax increases is not common sense,” Frey said.
Some of the substantial rises in cost are for health insurance, state retirement, and workers’ comp, according to Frey.
“Those increases really killed us,” he said.
“We cut a lot of this budget to allow for the health insurance costs. Even so, we’re not at a comfort level. If [a town employee] changes categories from single to family, or takes the buy-out… there’s no wiggle room,” he said.
And each year puts the town in a worse position, Frey said.
“If health insurance keeps going up the same amount and retirement continues to not be attainable, we are next looking at cutting departments. And I really think taxpayers would not go for that. So, we’re back to an override, and I DO NOT want to do another override,” he said.
Inlet is not alone in facing budget challenges, according to Frey.
“I read that Schoharie County is looking at huge budget overruns along with Herkimer County, because of the mandates coming out of Albany.”
“Unless Albany stops creating costs and starts doing some true belt-tightening, I don’t see the end in sight.
“The governor has never served in local government or at the county level. I don’t think he understands [the burdens we face].
“Even with increases in health insurance, workers comp, and the others, we cut $6.5 thousand. But then there’s no money left at the end of the year to turn back against taxes. At some point that catches up with you,” Frey said.