At the pre-file public comment session on the resolutions, prior to the public hearing on Lancaster’s preliminary budget, resident Dave Rinow questioned Supervisor by whose authority did he receive a $7,500 increase in salary (from $72,164 to $79,664) when his salary was stated in the tentative budget as stated as $72,164. Rinow declared, “STATE LAW SAYS YOU CAN’T RAISE SALARIES AFTER THE PUBLIC NOTICE HAS GONE OUT.” A lengthy discussion ensued as to who and how the change was made.


Before commenting on the budget, Chowaniec commended Councilmember Leary for his effort in reviewing the tentative budget and proposing modification that were board approved. The budget was late again, contained numerous data entry and calculation mistakes.

Leary’s approved modifications gave the budget credibility and made it presentable for public review. The only data entry needing revision is the Fund Balance Unreserved date of December 31, 2020. Shouldn’t that be December 31, 2021?

Chowaniec Comments

When examining the budget’s bottom line tax liability, the Lancaster taxpayer will find the zero sum increase in his property tax to his liking and will most likely pay no attention to how this came about. How did we go from record spending – an 8.6% spending increase from the 2021 budget - to a near zero tax increase – to understand how his tax dollar is spent and whether this is a fiscally responsible budget. Not all that glitters is gold.

Spending

Budget spending over last year’s budget increased by $2,408,993; an 8.74%increase ($27,505,287 to $29,914,280.)

Spending By Fund

General Fund – A 5.17% spending increase (10,093,067 to $10,614,795.)

The Supervisor is budgeted to receive an increase of $7,500; a 10.4% increase. That is unacceptable and most likely illegal..

Director of Finance & Budget is budgeted to receive a $6,470 salary increase: an increase of 8.10%.

No other Town Department Head or salaried workers are scheduled for wage increases – Assessor, Town Clerk, Law, Dog Control, Code Enforcement.

Police Fund – A 11.69% increase in spending ($10,862,858 to $12,132,848.

Question:
The data does not include salary increases coming after contract negotiations. How will the added revenue increase be accounted for? By use of 2022 appropriated Fund Balance?

Budget Director Cuviello explained revenue was set aside in the Fund Balance to account for wage increases settled in the upcoming union contract negotiations.

Highway Fund – A 9.26% increase in spending ($4,700,043 to $5,135,34)1.

Estimated Unreserved Fund Balance and Use

$9,752,204 Estimated at 12/31/2021

$1,951,280 – Appropriated to balance budget.

$7,800,924 remaining – 26% of total General Budget..

Last year only $963,000 was appropriated from the $9,436,658 Fund Balance leaving $8,468,658: 30.78% of the total budget appropriations.

Debt Service

$34 million: a 15% increase over 2021 budget.. Increases from last year by several million. The town is paying $1.1 million in annual interest on outstanding debt.

Employee Benefits

An increase of $571,965; 13,51% from 2021 budget. 23.8% of the $2.41 million increase in appropriations.

So when you consider your property tax increase will be negligible this year in comparison to the 2020 budget, keep in mind how we managed to record spend and not burden the taxpayer – increased revenues, record use of Fund Balance reserves, and an increase in tax valuations from town growth.

Is it a fiscally responsible budget? In my opinion it is after tentative budget modifications were made and tonight’s explanation of funds set aside to pay for wage increases from future employee contract negotiations. Had Supervisor Ruffino provided a cover letter detailing data and information why this budget should be considered fiscally responsible, residents would have welcomed said information to determine budget’s fiscal responsibility.