The final Lancaster adopted budget version has been posted on the town website (lancasterny.gov) The $35.33 million dollar budget tax levy increases the tax levy by 3.23% well under the tax cap limit and that of the first two tentative budget versions (6.6% and 5.45%).

By using $600,000 more of fund balance reserves, the adopted version, despite adjustments, decreased the tax rate to 6.29% per thousand dollars of assessed property valuation. The October 5th filed budget version and ‘revised’ version had tax rates of 6.71% (and did not meet the tax cap limit).

A ‘Supplemental’ version used more fund balance to meet the tax cap limit, lowering the tax levy as well, where the tax rate decreases from 6.71% to 6.64%, thereby lowering the tax liability.

When I questioned at the public hearing on the ‘preliminary’ budget whether the budget met the tax cap limit, I was told they just realized it did not (that very day), and were taking another $249,000 from the fund balance to meet the tax cap limit. When I then asked why even more fund balance was not being used as the new amount was only $562,000, and where the use of fun balance had averaged about $1.5 million in past years to lower the tax levy, I was told the town wanted to keep as much in reserves as possible to offset any future Covid impacts.

Well, thanks to Council member Leary and his pursuit in researching fund balance amount and dire future need, another $400,000 was used. The tax levy was furthered reduced, as well as the tax liability – and there remains near $9 million in the unreserved fund balance.

Kudos to the town for coming in with an adopted budget that lowered the initial percent tax levy increase from 6.6% to 3.23%, a tax rate reduction from 6.71% to 6.29%, and where there is still a healthy fund balance in time of need.

Hopefully, we will never encounter another budget debacle process as this one. The filed October 5th budget was a disaster. Four budget versions, two over the tax cap, and the budget adopted without with an adjustment Schedule, but no final line item budget version included in the resolution. Until today, no line item budget where one could determine their tax liability:

2020 tax liability

8.01 X $1,000 of assessed valuation + Refuse ($172.84) + Water Consolidation ($1)

2021 tax liability

6.29 X $1,000 of assessed valuation + Refuse ($177.93) + Water Consolidation ($1)

Those property owners who realized no or small property assessment increases will realize tax liability reductions. Those who experience significant increases in property valuation will also realize the tax liability could have been a lot worse.

Done for another year!

Lancaster, a great place to call home!