Taxes and Fees
Lancaster Town Board agenda calls for 2009 budget approval
By Lee Chowaniec
Nov 16, 2008, 15:28

Tomorrow evening the Lancaster Town Board is scheduled to approve the 2009 budget. The modified budget reduces spending by $85,089; from $27.71 million to $27.63 million. The amount to be raised by taxation is reduced by $120,000 ($18.002 million).

Taxpayers should realize a minimal decrease from the tentative budget 3.42% tax rate increase and savings of only pennies on their tax bill. Excepting a $40,000 reduction in highway spending for DB5110.220 Passenger Vehicles, the final budget decrease comes from other sources.

By the numbers

The budget decrease was brought about without cuts in employee jobs, salaries, benefits, longevity pay or other perks. No services were affected and employee contributions to retirement or health insurance programs were not increased. Four union contracts remain to be negotiated and town elected officials still get insurance buyouts.

General Fund Townwide – increased by $2,380 ($6,000 more was taken from the Debt Service Reserve to offset the increase and lower the amount to be raised by taxation.

Highway Fund – Reduced spending appropriation by $40,000 in the Passenger Vehicle line item. Appropriated $5,000 more from reserves to lower the amount to be raised by taxation by $43,457.

Police and other funds remained untouched.

Special Districts – Interest on Consolidated Water District bond notes were overstated in the preliminary budget by $49,012. Debt Service Reserves were tapped for another $38,000. In total, an $87,012 adjustment reduced the amount to be raised by taxation.

Added to the final budget were the following “undetermined” in the tentative budget:

Delinquent water bills - $9,600
Out of district sewer charges - $444.60
Property cleanup charges - $3,422.10

Amount to be raised by taxation

This is the bottom line and impacts what we will pay in taxes. The tentative budget number was $18,122,837. The final budget number is $18,002,228, or a decrease of $120,000.

It is important to note that the $120,000 decrease would have not occurred had it not been for the $49,000 that came from added reserves, $40,000 from highway fund passenger vehicle line item and $49,000 from a bond anticipation note interest over-estimation.

In short, “it is what it was”.



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