Bleak Outlook for Town Budget

Town officials are starting to piece together exactly how they plan to stay ahead in 2010, maintain reserves, and budget for 2011 without layoffs.

Faced with dwindling revenues, they will ask department heads to project budget cuts next year ranging from five to 15 percent—and, for the first time, ask the libraries to identify cuts as well.

The town has kept funding levels to local libraries steady for three years but will likely not provide the same allocations in 2011. Each branch receives 75-80 percent of its annual budget from the town.

The mood at Tuesday night's budget work session was bleak. Though the town will not adopt its budget until December, the board's early planning may help them with the fiscal challeges Bedford, like many municipalities, is facing.

There were bright spots.

Town comptroller Ed Ritter reported on the recent bond refunding, which is expected to bring a one-time savings to the town of about $200,000.

Parking revenue is up 25 percent from 2009, and is projected to be about $745,000 in 2010. And sales tax revenue is up almost 4 percent, $204,889 over what was budgeted.

That will offset the shortfall in mortgage tax revenue, which is projected to be $191,682 under budget. In addition, the justice court income from fines and forfetied bail is also down $48,200 from last year.

Though the town is not planning on dipping into its $1.5 million undesignated reserve this year, the board seemed to be preparing for a tougher 2011.

For the past few years, the town has budgeted tightly, with every department reducing spending without layoffs.

Board member Chris Burdick suggested that may not be the case for 2011.

"Last year we asked for non-personnel cuts. But we need to ask them to look at their entire budget," he said.

Supervisor Lee Roberts suggested they ask departments look at reducing part-time help. "I'm concerned if we ask departments to cut any more we will be cutting services," she said.

Board member Francis Corcoran agreed. "The departments have cut to the bone. The only way to get big numbers are looking at salaries and benefits," he said, and asked if the town was taking advantage of any New York State retirement savings incentives.

Roberts reported that state parameters require a 50 percent savings on salary for two years, followed by paying into a pension plan for the retired employee for five years. "The only way [for it to work] is if you don't replace the employee," she said. After talking with potential retirees, the town determined none were a good fit for the program.

Though too early to say what the property tax will be, Roberts indicated it will likely only go up.  

The board planned to meet and discuss next steps with departments via their board liaisons.