Supervisor Siegel Releases Her Tentative 2011 Budget

Yorktown Supervisor Susan Siegel released her 2011 tentative budget on Friday, which is the first step of the town's budgeting process.

"In preparing the tentative budget, my goal has been to keep the increase in the tax rate as low as possible while maintaining the programs and services that are important to our residents," Siegel said. "I believe this budget achieves that goal and that most residents will not be impacted by a few modest reductions in some services."

Siegel's budget proposes a 3.65 percent tax increase which amounts to less than $50 more per year for a typical homeowner. It also includes more than $800,000 in budget cuts and cost saving measures, only a few of which may be noticeable to residents in the form of reduced services, she said.

"Nobody wants to see their taxes go up, especially during these difficult times, but neither do they want to lose any of the services the town provides," Siegel said. "When I asked residents what was most important to them, what I heard most often was that they would rather pay a few dollars more if it meant that services would remain the same,"

She said she believed an annual increase of $50 was more preferable than the cuts that would be necessary to keep the tax rate flat, or even decrease it. Before she began the budget process, she said she had learned decreasing revenues and rising costs meant she was facing a $1.2 million budget gap.

"Put simply, without changing anything from this year's budget, we were looking at an 8.77 percent tax hike," Siegel said. "Obviously, that was a totally unacceptable scenario. I had to make some hard decisions in order to arrive at a reasonable balance."

While most of the major cuts in the tentative budget involve reassigning town staff, changing job titles, and not filling positions left vacant by attrition, there are a few minor reductions in services, she said.

Those reductions include reducing the number of bulk trash pick-ups from four times a year to three. This reduction would allow DEC staff to assist Parks and Recreation staff with mowing during the summer and eliminating the need to hire seasonal staff, Siegel explained. Overtime costs at the YCCC would be reduced by closing the building on Sunday when staff is paid double-time. However, tenants such as Yorktown Stage would continue to be able to use the building on Sunday as long as they pay for the required custodian. The John C. Hart Library would continue to be open seven days a week, but the number of hours they would open each day would be reduced.

"I have spent a lot of time and effort compiling this budget proposal, and I believe it is an honest budget that neither artificially inflates revenue sources or recklessly uses our depleted fund balance to lower the tax rate," Siegel said. "But this is only the first step of the process. The town board will weigh in and together we will meet with each department head, followed by a public hearing on Dec.2. Everyone will have a chance for input before a final budget is adopted."

Quick Fact Sheet

2010 General, Highway and Library Fund Budget, actual: $29,972,125

2011 General, Highway and Library Fund Budget, proposed: $29,986,570

Total spending (all funds, minus Open Space): down $306,332 from 2010

Tax implications for typical homeowner with a house assessed at $10,000:

• Tax rate increase for combined General, Highway and Library Funds: $48.30 (3.65 percent)
• Total town tax bill increase for resident with town utilities: $46.00 (2 percent)
• Total town tax bill increase for resident without town utilities: $48.74 (2.8 percent)

Unreserved fund balance in the General Fund at 10 percent: down 34 percent since 2008.

REVENUES

Non property tax revenue projection: $1.9 million less than 2008

Interest Income: down 65 percent since 2007

Mortgage Tax income: down 58 percent since 2007

Building Permit fees: down more than 50 percent since 2007

Only Sales Tax, Franchise Fees, and SEQRA fees are projected higher for 2011

EXPENDITURES

Pension payments increase: $746,580

Medical benefits increase: $390,873

Compensate for 2010 Fund Balance revenue: $500,000

Pay 2011 taxes for Granite Knolls: $150,000

STAFFING

Employee costs (salary, medical, retirement, FICA, etc): 78 percent of budget

Reductions from attrition and early retirement incentive in 2010: 

• 10 positions for an annualized salary savings of more than $500,000

Proposed changes for 2011 include attrition, transfers, changes in job titles, reduced hours, and layoffs of two part time employees:

• 8 positions for a net savings of $278,000

The tax rate increase for general, highway and library is 3.65 percent or $48.30. But the increase in the tax bill -- for the typical homeowner with utilities  -- is $46 - or 2 percent. The reason for that is the 2.77 percent decrease in the water district charge. Also, despite $1.3 increase in expenditures, the combinded increase in expenditures for the general, highway and library fund is $14,445.  The $306,332 increase is for all funds (includes water, sewer, etc but not open space). General, highway and library budget totals $29.9 million. The general is $22.9 million, and all funds total $49.6 million.

The town board will discuss the Supervisor's tentative budget on Friday, Nov. 12 when all departments would review it and discuss it with them. On Nov. 23, the town board would make adjustments to the budget based on the feedback they've received. Public hearing for the budget is scheduled for Dec. 2.