2012 Proposed Lancaster budget, fiscally responsible or smoke and mirrors; Part 1

[ichingtheory]

From Speakupwny.com

Taxes and Fees
2012 proposed Lancaster budget, fiscally responsible or smoke and mirrors; Part I
By Lee Chowaniec
Oct 18, 2011, 09:42



As in every public hearing on proposed budget in Lancaster, only a handful of residents showed up to voice their comments and concerns. Although the proposed 2012 budget calls for a slight tax decrease and one would think there would be no comments and concerns voiced, indeed there were.

The writer was the first to address the board on the proposed budget.

Chowaniec comments and questions

As this is an election year, one would expect a budget with a low tax increase. It appears all municipalities came in at 2% tax rate increases or less. The budget analysis Supervisor Giza and Budget Director Dave Brown presented in the Lancaster Source paints a rosy picture, and rightfully so.

The budget proposal calls for a mere 0.71% tax levy increase – far below the 2.8% tax levy increase the town was allowed by state law, after exclusions were figured in. Town of Lancaster residents would actually realize a slight reduction in taxes of 0.91% from last year.

Lancaster residents having a home assessed at $200,000 will realize a $16.19 tax reduction from last year’s property tax bill.

That’s a good thing considering that this budget has only an overall spending increase of 1.71%, and where the General Fund portion (minus Special Districts) increased by only 2.2%.

However, there are other budget items that the residents should be made aware of, and be concerned by them as well.

Since 2004, the year after the Lancaster Town and Village police merger, and through the 2011 budget year, spending increased by 38.2 % while revenues increased by only 18.3%. In those seven years spending increased by an average of 5.46% per year; far above the annual inflation rate and household wage increases, while at the same time revenues increased an average of 2.61%

Mr. Giza, you berated a Mr. Hyde who is running for a council position for failing to mention that his 38% increase in taxes was partially due to an assessment increase. In the 2005 reassessment process my assessment increased. It went down 10% in the 2010 reassessment and yet my town taxes increased by 35% over that seven year period. In fact, many residents last year experienced last year double-digit tax increase when the tax levy increased by 14%.

Lancaster’s 2012 budget reflects:

According to Supervisor Giza and Budget Director Brown's comments in the Lancaster Source, the following are some budget positives:

* No salary increase for any town employee.

* Town spending up by 2.2% was offset by a 5.68% increase in revenues.

* Debt service decreased significantly.

* Real property tax item revenue increased by 37.21%; from $615,100 to $843,950.

*Non property tax item revenue increased by 5.55%; from $4.56 million to $4.81 million.

* Town growth brought in more property tax revenue.


What should also be noted with this budget is the following:

Town employee benefits costs increased by 12.1%. By benefits you mean pension and health, correct? By what percentage did either increase?

Budget Director Dave Brown answered that the increase was primarily in retirement cost increases. “The Employee Retirement System (non police) went up near 28%, from $775,000 to $991,000. For the police it went from $1.2 million to $1.285 million, 7.80%.

What percentage of wage does the town contribute to the NYS Retirement System for town and police employees?

Brown answered that it depended what Tier the individual was in. But for non police town employees the town will contribute 20% of their wages to their retirement system and for police the town will be contributing 30% of their wage to their retirement system.

For the longest time police did not contribute to the retirement system and town employees contributed 3% for the first 10 years of full time employment. Has that changed?

Brown declared that the state has made changes. The new changes mandate that new non police employees contribute 3% forever and for the police there will be a change but that he is unaware of what that plan will entail.

This budget excludes a wage increase for all town employees. The town is currently in contract negotiations with the four unions. The current contracts expire at the end of this year. Has the town received union assurance, even verbal, that they will accept a wage freeze for 2012?

Brown responded that as of yet they have not received any union notification that they are acceptable to a wage freeze for 2012.

Am I correct in declaring that the total wage compensation for full time employees is approximately $5.39 million and for police it is $4.2 million for a grand total of approximately $9.6 million? So by not giving town employees and/or police a wage increases the town will save $96,000 for every 1% granted in wage increase?

What happens should the time come when the contract is negotiated and an agreement is reached where a 2012 retro wage increase takes place? Does not imply that there will be a large tax increase in the future that would also imply that the town board would vote to override the 2% tax cap limitation?

Brown responded that that logic is exactly opposite. “If you don’t give them (unions) a raise this year, than you can repeat it the next year, and the next, and literally forever until we reach an agreement.”

Personally, I don’t see why the unions would care about a wage increase if they are not being asked to contribute toward their health plan coverage.

All four union contracts end this year. Is the town in their union contract negotiation process asking the town employees to start contributing to their health care plans? No town employee currently contributes to their health care plan.

The one-year wage freeze is a one shot deal. Taxpayers would be better served if town employees were obligated to contribute 10 - 15% of their health care premium, a plan that includes dental and vision. The town has no say in the outrageous, mandated NYS Retirement System, but it certainly does have a say in the health care program.

If we use as example $60,000 as the average town wage, the one shot wage freeze would save the town $1,800; that is if a 3% wage increase is given the employee. If the town negotiated a contract that called for town employees to contribute 15% to their health care premium, every town employee would be contributing well over $2,000 to their health care plan. This makes the savings not a one shot, but savings for every year thereafter.

Mr. Supervisor, you stated in the Source: “Our theory is that people are hurting out there. They are losing their jobs. Let’s give everybody a little breathing room.”

While seniors like me, who have received no COLA in the last two years, have heard on none for this year so far, are paying $300 monthly (and more) for Medicare and supplemental insurance premiums. Those without insurance coverage are paying twice that amount. And we are expected to pay for town employee health plans that are much better than our own. That’s just not right!

That is not fiscally responsible governance. The town has been too generous in past contract negotiations. Whoever heard of longevity pay in the private sector? There is much more cutting to be done regarding buy back days, stipends, perks, etc.

This budget is not, “What you see is what you get.”


Next: Part II: Resident comments/concerns continued



© Copyright 2003 by Speakupwny.com

[Ace22]

Usually when taxes go down, people are happy.

I hope there was a line a mile long going out of the front of town hall last night, to praise the current Board and Budget Director for doing the best they can to give everyone relief during economic times.

The fact is, many of you would never be happy. I would love to read this blog if there was a proposed tax increase rather than what is looking like a tax decrease. But, misery does love company, as many of you dig to find the negative.

To our local officials- I COMMEND YOU. THANKS FOR TRYING EVERYTHING YOU CAN TO CUT TAXES!

[ichingtheory]

Ron and/or Nick.. Sorry! I mean Ace! Taxpayers do not have to dig very deep to find the negatives. You know as well as I do that all the freebies including "longevity pay" has to stop. Why should public employees in this town continue to get a free ride regarding health care & pension etc? Lee says it all in his article..

[Lee Chowaniec]

Usually when taxes go down, people are happy.

I hope there was a line a mile long going out of the front of town hall last night, to praise the current Board and Budget Director for doing the best they can to give everyone relief during economic times.

The fact is, many of you would never be happy. I would love to read this blog if there was a proposed tax increase rather than what is looking like a tax decrease. But, misery does love company, as many of you dig to find the negative.

To our local officials- I COMMEND YOU. THANKS FOR TRYING EVERYTHING YOU CAN TO CUT TAXES!

You’re right Ace, this is a good budget. That is if you honestly believe this has nothing to do with it being an election year ploy and if you can get yourself to believe that the wage freeze is a good cure-all for the budget increasing in benefits by 12.1%.

The town contributes 30% to the NYS Retirement System for a police employee. A patrol officer earning $68,000 costs the town $20,400. That same officer receives free health care. If it is a family plan, the plan costs town (whoops, taxpayers) another $18,000. We are already up to $106,400. Now throw in longevity, overtime and all the other perks and you have God knows what.

The police chief earns $107,000. Add $32,000 to the pension system and $18,000 in free health and we are at $157,000. Now tell some senior, or low income homeowner, or someone that just lost their job, that they have to pay for pension/ health care plans the likes they do not have.

For a town employee earning $60,000, Lancaster contributes 20% ($12,000) to their retirement system and that employee also receives free health care – if family plan, the cost is $18,000. That employee is costing the town $90,000, and that does not include other compensation.

The town has no control over the NYS Retirement System costs. It does for everything else. Through the years the town has established a legacy that is no longer affordable and/or sustainable.

Spending has been out of control in this town for years. And millions of dollars of taxpayer money has been wasted with the police/courts facility project. Smoke and mirrors, Ace.

[TheNewGuy]

You’re right Ace, this is a good budget. That is if you honestly believe this has nothing to do with it being an election year ploy and if you can get yourself to believe that the wage freeze is a good cure-all for the budget increasing in benefits by 12.1%.

The town contributes 30% to the NYS Retirement System for a police employee. A patrol officer earning $68,000 costs the town $20,400. That same officer receives free health care. If it is a family plan, the plan costs town (whoops, taxpayers) another $18,000. We are already up to $106,400. Now throw in longevity, overtime and all the other perks and you have God knows what.

The police chief earns $107,000. Add $32,000 to the pension system and $18,000 in free health and we are at $157,000. Now tell some senior, or low income homeowner, or someone that just lost their job, that they have to pay for pension/ health care plans the likes they do not have.

For a town employee earning $60,000, Lancaster contributes 20% ($12,000) to their retirement system and that employee also receives free health care – if family plan, the cost is $18,000. That employee is costing the town $90,000, and that does not include other compensation.

The town has no control over the NYS Retirement System costs. It does for everything else. Through the years the town has established a legacy that is no longer affordable and/or sustainable.

Spending has been out of control in this town for years. And millions of dollars of taxpayer money has been wasted with the police/courts facility project. Smoke and mirrors, Ace.

according to the Lancaster Bee's latest poll->>>>www.lancasterbee.com<<< critics of the budget are in a stark minority.

Are you pleased with the Lancaster Town budget?

Yes- 77%
No- 23%

seems like Bee readers approve overwhelmingly. we'll see what bill of good fudoli tries to sell at the debate, i can't believe he is exposing himself to questioning- this could get dicey

[ichingtheory]

according to the Lancaster Bee's latest poll->>>>www.lancasterbee.com<<< critics of the budget are in a stark minority.

Are you pleased with the Lancaster Town budget?

Yes- 77%
No- 23%

seems like Bee readers approve overwhelmingly. we'll see what bill of good fudoli tries to sell at the debate, i can't believe he is exposing himself to questioning- this could get dicey

Just proves how uninformed people are. They approve something they know nothing about.

I am looking forward to the debate...

[ichingtheory]

Just spoke to a friend of mine that works for the Town of Lancaster. Employees are the ones voting. She/he also mentioned another poll as well in regards to "if they should pay for their health care". I checked and sure enough, 100% say no. Now I know why the numbers on both polls do not make sense. Just another election year prank.

[gorja]

according to the Lancaster Bee's latest poll->>>>www.lancasterbee.com<<< critics of the budget are in a stark minority.

Are you pleased with the Lancaster Town budget?

Yes- 77%
No- 23%

seems like Bee readers approve overwhelmingly. we'll see what bill of good fudoli tries to sell at the debate, i can't believe he is exposing himself to questioning- this could get dicey

According to the Lancaster Bee's latest poll-

Should town employees pay for healthcare coverage?-

YES - 86%
NO - 14%