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Lancaster’s public hearing on the 2010 tentative budget proposal
By Lee Chowaniec
Nov 3, 2009, 10:06

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A small gathering of taxpayers attended the Lancaster Town Board’s public hearing on the tentative 2010 budget. Only three individuals spoke on a budget that had recently been cited as a topic of resident concern by the two incumbent Democratic council members out on the campaign trail.

Citing resident concerns on property taxes, Council member incumbents Ronald Ruffino and John Abraham recently called for a special town board work session with all town department heads. The department heads were asked to sharpen their pencils and come back with reasonable ways to make further department budget cuts. Ruffino and Abraham offered to forgo their 2% scheduled salary increases as a way of setting an example.

Before any public comments were made on the Ad Volorem part of the budget, Supervisor Robert Giza was asked whether any department cuts were made; cuts that could impact comments. Supervisor Giza replied: “No, we gotten a number of things that I have not shared with the board yet. We are here to discuss the budget as presented; on what’s out there.”

With that direction the following budget comments were made in the order presented.

Lee Chowaniec

The 2010 tentative budget increases the tax rate by 2.97%. The Supervisor tells us he made a lot of budget cuts this year to offset the significant increases to the NYS Retirement program, health care and workman’s compensation; and to offset the decreases in sales tax, mortgage tax and savings interest revenues – a total of $1 million; and he did.

During their door-to-door campaigning, Council members Ruffino and Abraham hear from constituents that taxes are too high and the town needs to curb spending. They call for a special work session where they request town department heads sharpen their pencils and see if they can come up with cost cutting ways to help reduce the proposed 2.97% budget increase. At the work sessions we hear Councilmember Stempniak tell us 75% of the budget contains mandated programs and that the board only controls 25% of the remaining budget.

Councilmen Ruffino and Abraham offer to forgo their scheduled salary increases to set an example for others. The other two board members go along and there is a grand total of $1,440 tax dollars saved. Political grandstanding, you betcha!

What they don’t want you to know is that from 2004 (the year after the police merger took place) until 2009, spending in this town increased from $21.48 million to $27.71. In five years the spending increased by 29%; an average of 5.8% per year, over twice the rate of inflation. There was no special work session in any of those years to find ways to cut the budget; nor were any cuts made from resident comments made at the public hearings. This year, as Supervisor Giza stated much was cut out of the budget and spending increased by only 1.8%. Why the special meeting this year? Why, because it’s an election year.

As for the 75% untouchable mandated programs. The town negotiated four union contracts this year. Outside of a few health care concessions (increases to co-pays, doctors visits, emergency room visits) and salary percent decreases from the customary 3% to 2.75% (police still get 3%), what’s changed? For years I have voiced opposition to longevity pay, Equalization Pay stipends, police not paying anything into their retirement, no town employee paying for Cadillac–like health care premiums and other perks. What’s changed? Where were Mrs. Ruffino and Abraham on making truly significant cuts while this process was taking place? Were the votes of town employees more important than having town employees pay their fair share? Are town public sector employees sharing the pain and sacrifices others are experiencing, I think not.

Speaking of fair share, the town is in the process of a property reassessment based on full market value. The town has and is approving numerous residential projects where Condominium Law 339-y considerations are in effect. The 40% tax breaks given to these property owners oft times pays not only for services not provided by the town, but pay the entire Association fees, and then some. The Assessor is looking into adjusting these tax breaks to bring fairness to the rest of us taxpayers making up a scam that has been used by developers as a marketing tool. This Town Board should be assisting the Assessor in trying to end this disparity by petitioning other municipalities to work together to end this perversion of Condominium Law 339-y.

The same may be said of the numerous IDA’s issued to businesses that do not bring jobs into the area – such as the Buffalo-Lancaster Airport. We taxpayers have to make up the difference for these two subsidies.

This budget is nothing more than a culmination of past bad budgets, too generous by all means. But this time the chickens are coming home to roost! Had it not been for the town spending of $1.7 million in un-appropriated reserves, the tax rate increase would have been even more obscene.

Mike Fronczak

Fronczak: “Is it true Supervisor Giza that you still receive a $6,000 annual stipend for your health care?”

Supervisor Giza: “That’s right. I don’t take the (town provided) health care insurance.”

Fronczak: “So, you have health care coverage…”

Supervisor Giza: “It’s not $6,000. I think its $4,600.”

Other town officials gave the correct number as $6,600.

Fronczak: “So isn’t that $6,600 that could be trimmed from the budget. You don’t need it as you have an outside source of insurance? Other board members don’t get it (the $6,600) stipend) any more. Is there a reason you don’t lead by example?

Supervisor Giza: “That’s not true that others don’t get it anymore.”

Fronczak: “The other board members don’t get it. They did for a long time and there was a lot of money spent giving those stipends. My point here is that if everyone seriously wants to make budget cuts, this is something that really frosts my cake. That you’re still getting $6,600 and you don’t have to get it because you already have health insurance from an outside source. This is a lead by example situation, not taking this stipend.

Fronczak: "On another matter, tell me that with all the home development that takes place in town, where the developer pays for all the roads, the utilities, the building permit fees, where is all that money being eaten up. The town realistically only has to plow the roads and pick up the garbage. Where is the money generated from homes that are paying $7,000 in taxes going to that my taxes are constantly going up? Those new subdivisions don’t generate much town in town services.”

Supervisor Giza: “The taxes go into the budget and we use it to defray costs. It’s revenue.”

Fronczak: “So, it seems like we get more money so we spend more money. Why are my taxes going up when I see all kinds of development going up around me, residential and commercial, and my taxes are going up.”

Supervisor Giza: “We need it for garbage pickup, fire…”

Fronczak: “We have the cheapest garbage rates going. You have boasted about that. I’m just saying that there’s a lot of development still taking place and I still see my taxes going up. I would like to see pencils sharpened and budget cuts made.

Carmen Hangauer

Hangauer: “Are you all (Board Members) taking an increase in pay, or not?”

Supervisor Giza: “The board can speak for themselves.”

The council members spoke out and said that they were not taking a pay increase.

Comment

Mr. Fronczak and town residents should be especially concerned as to what will happen with the tax liability when the building stops. The current politicos in office will be gone, but will you?



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