Budget has 2.5 percent property tax increase
By MICHAEL PETRO
The state budget crisis and struggling economy have taken a bite out of an otherwise modest and well thought out proposed budget for the upcoming fiscal year in the Village of Hamburg.
Though the village’s spending plan calls for a minimal .4 percent or $31,818 increase in general fund expenses, a significant decrease in non-property tax revenue pushed the tax increase to 2.52 percent, or 43 cents, to $17.48 per $1,000 of assessed valuation for the fiscal year June 1, 2009 through May 31, 2010.
For a home assessed at $90,000, this represents a $38.70 increase in property taxes.
Donald Witkowski, administrator and budget director, said village officials worked diligently to maintain services, village infrastructure and customer service while minimizing the burden of increasing property taxes inflicted on its residents.
However, Witkowski noted that the village took a hit in the proposed budget due mostly to the $145,981 decrease predicted in non-property tax revenue.
That revenue is down in the proposed budget from this year’s $2,624,233 to $2,478,252.
The village plans to raise $5,500,089 in property taxes, which is an increase from this year’s spending plan of $177,799, of which $145,981 is due to that loss in funds from this year’s budget.
Witkowski said the decrease to the budget of nearly $100,000 is due to the elimination of one-time revenue sources such as the sale of property and sewer tap fees, while approximately $70,000 was lost in state revenue from reductions in mortgage tax and consolidated highway aid.
The budget calls for the total spending of $7,978,341, up slightly from this year’s $7,946,523. It provides for around $391,000 in funding for capital projects such as road repairs and the purchase of equipment and vehicles.
This year’s taxable assessed valuation has increased from $312,166,947 to $314,598,626 which generates approximately $41,465 based on last year’s tax rate.
Faced with the hit the village took in state funds, due in many ways to the spiralling economy,
Witkowski wrote on a memorandum attached with the proposed budget that the village is attempting to reallocate resources and reorganize and consolidate staffing in order to fund maintenance effort for on-going programs and services in addition to provide moneys for capital projects.
“Between the loss in CHIPs funding and the mortgage tax, those were big hits that had an impact,” Witkowski said. “Our struggle was maintaining the services people are used to in the village, while trying to absorb those hits.”
Some of the cost-saving measures taken by the village in the proposed budget include closing down the Public Works Department office to the public and redirecting those matters to Hamburg Village Hall.
This transition was made after the decision not to replace a full-time retiring clerical staff member for the DPW, instead reorganizing staff within the Clerk-Treasurer’s Office to accommodate the increased work load and responsibilities.
Employee benefits related to personnel have been cut in the proposed budget by $87,582 due, in most part, to changes to the village’s health insurance plans which have allowed for a temporary reduction in the state’s retirement system and health insurance/hospitalization costs.
The village increased it budgeted funding for asphalt up $90,000 to $140,000, but with anticipated CHIPs funds and those carrying over, $238,735 is expected to be available for repair and resurfacing of streets in 2009-10.
Some costs that are proposed in the budget include salary expenses which are up $30,709 to $3,221,282 due chiefly to contractual pay raises for unionized employees and salary increases for non-unionized employees but not including the mayor and board of trustees who will not receive pay raises.
Seven part-time election officers will also need to be added as required by law for the upcoming village elections.
Other projects and costs added to the proposed budget — but fully funded without bonding — are $151,265 in capital projects funds for a replacement garbage packer truck for the DPW; $27,590 for the purchase of a replacement police vehicle; and $8,736 for a replacement van for transportation of youth participants in Recreation Department programs.
The village will hold a public hearing for the proposed budget on March 16 at 7:15 p.m.
The board must adopt a budget by no later than May 1.
The budget is now available for public review at Hamburg Village Hall at 100 Main St. or by going online and visiting the village’s official Web site at: www.villagehamburg.com
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