Last Tuesday, Depew Mayor, Joseph McIntosh released the village budget for 2007-08. The budget featured a 1.9 percent tax increase, the lowest tax increase proposed by McIntosh during his tenure.
The Mayor’s critics charged him with releasing the budget late so that it could not be scrutinized before the election. They further claim that the Mayor issued a late budget before the last election with a small tax increase. After the election, the Mayor changed the budget, saying his revenue projections were off. When McIntosh changed the budget, he increased the tax rate. His increase exceeded the rate he projected before the election.
After examining the budget, critics are wondering if the Mayor is playing the same game in during this election.
Depew’s 2007-08 budget contains $225,000 of questionable income increases.
The budget anticipates an $80 thousand dollar increase in non-property tax items from Erie County. The increase exceeds projected and real non-property tax items the village received in fiscal 2006–07.
Depew’s new budget also anticipates a $10 thousand dollar increase in its Franchise Cable TV contract. The increase is not justified under the current cable contract and exceeds the prior year’s revenue.
The budget further projects a $65 thousand dollar increase in interest income. This increase is almost double the projected amount in the prior budget. Based on projected fund balances, this increase cannot be met without a huge increase in interest rates.
The Mayors budget further anticipates a $70 thousand dollar increase in Recycling Royalties. Based on current contracts, this increase cannot be substantiated.
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The tentative budget estimates that taxes and fees will exceed expenses by $200 thousand dollars. Depew will use money from fund balance to make up the difference.
If projected incomes are overstated, the Mayor has two choices. He can keep the tax rate the same and take more money from the fund balance, or he can raise the tax rate before the budget is approved.
The final budget will not be approved until after the election.
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