ROTTERDAM Insurance savings help trim tax hike Surplus also tapped; increase should be about 8.5 percent BY JUSTIN MASON Gazette Reporter Reach Gazette reporter Justin Mason at 395-3113 or jmason@dailygazette.net
Significant reductions in a threeyear insurance premium deal will help drive down the town’s anticipated tax rate in the 2009 budget. The reduction is among about $300,000 in spending shaved from the double-digit percentage increase in taxes initially forecast in the tentative budget. The revised budget would bring the residential tax rate down to $3.61 per $1,000 of assessed property value, which would raise taxes by about 8.5 percent. A vote to adopt the budget is expected Nov. 12. Supervisor Steve Tommasone said the town will realize at least $80,000 annually as a result of dramatic reductions in the insurance premiums. The town allocated $4,000 to hire private insurance counselor Pat DiCesare, who then helped negotiate down the $360,000 premium the town paid annually for municipal coverage during the previous three-year contract. DiCesare said a combination of competition and market conditions resulted in the town securing a low bid of $254,000 and a high bid at $284,000. As a result, the town could realize savings of more than $100,000, depending on which contract is selected. “This is another great example of when we’ve gone to the experts for advice and have benefited greatly,” Town Board member John Mertz said during a budget committee meeting Wednesday evening. The revised budget also saw $100,000 cut from next year’s allocation for paving, keeping the expense line level funded from the previous year. Tommasone said the town will assess the budgetary situation during the spring and could replace the funding if there is an unanticipated surplus. Tommasone also moved another $100,000 from the town’s $3.7 million fund balance to offset some of the budget shortfalls created by decreased revenues from sales tax, mortgage tax and court fines. All three sources of revenue face pronounced reductions, according to preliminary estimates by the town comptroller. Mertz argued for the town to take more out of the fund balance to reduce taxes during a tough budget year. He said the town should look to spend up to 20 percent of its reserves to reduce the tax levy. “The reality is the financial impact is going to hit Rotterdam,” he said. “I think we need to make sure we’re safe-guarded, but also provide some immediate relief.” Mertz argued for the committee to trim another $425,000 from the budget, thereby leaving town taxes flat this year. Tommasone said this goal could be achieved if up to eight town workers accept the early retirement package being offered to them this year.
Hike in taxes draws fire Residents grill Town Board at budget hearing BY JUSTIN MASON Gazette Reporter
Anything less than a decrease in local taxes next year is too much, Rotterdam residents told the Town Board at its budget hearing.
The nearly three-hour-long meeting Thursday included about two dozen home and business owners speaking out against tax increases included in the 2009 budget proposal. The $20.1 million spending plan has an 8.53 percent increase in residential taxes and a 4.19 percent hike in commercial taxes, according to the town’s rates.
“The taxing is so out of control and so out of sync with what is going on in the world today,” Ric Lucia said on Friday. Lucia, who owns a trucking business on Mariaville Road, spoke during hearing. “They don’t get it,” he said Friday.
Residents with a $200,000 home can expect to pay about $723 in town taxes, according to the budget. A vote to adopt the budget is expected at the board meeting Wednesday.
Lucia was incensed by noncontracted raises in the budget. He said the budget proposal is loaded with these types of pay increases, which wouldn’t fl oat in the private sector during an economic slide.
“The people are on the verge of anarchy,” he said. “The common working person can’t take any more taxes.”
Lucia, who said he pays more than $96,000 in total taxes on his business, urged the town to do whatever it takes to reduce spending below last year’s fi gures. He said the town should even consider layoffs, if that’s what it takes.
“[Town officials] don’t get it,” he said. “They’re laying off thousands of people in the private sector.”
Supervisor Steve Tommasone defended the budget proposal. He insisted the increased taxes are a function of decreased revenues and not an increase in town spending, which would go up by only a fraction of a percent under the proposed budget.
Tommasone said town revenues are down by $399,565 and the amount to be raised through taxes is at $424,717. He said general and highway spending is increasing by only 0.77 percent in the preliminary budget.
“The revenues are down,” he said. “It’s not a situation where we’re looking to spend more.”
Tommasone pointed to the more than $1 million that has already been trimmed from department requests. He said the board is committed to trimming at least another $160,000, but couldn’t go much further without either dipping deeper into the town’s surplus or cutting necessary expenditures.
“I’m confident that we’re gong to come in lower than where we are now,” he said. “I just cannot support coming in and making draconian cuts.”
The budget was also criticized by former Town Board members Bob Godlewski and Joseph Guidarelli. Godlewski criticized the budget for including new positions, such as the appointed economic development specialist position, which was given a $47,500 line item, and a data entry clerk in the assessor’s office who would be paid $20,000 annually.
“We can’t afford it,” he said.
Godlewski also chided Tommasone for not giving the public enough time to review the budget or running the process in accordance to state law. He said the preliminary budget wasn’t fi led with the town clerk until Monday afternoon, which didn’t give the public the mandated five days to review the 62-page document.
“They called a public hearing and didn’t have the document there for the public to review,” he said.
Tommasone disagreed. He said the public was given plenty of opportunity to participate in the budget process.
Regarding the new positions, he said the town’s overall staffing level will remain static because of retirements. He said the town’s level of staffing couldn’t be reduced further without cutting services.
“We understand that taxes are high, but there’s also a need for services,” he said.
That's funny. When I watched the tape of No change Godlewski sitting in the audience at the county legislature meeting on channel 16, I saw him sitting there. Then he sat there, then he sat there some more. Then he smiled. The he was quiet. Then he sat there quietly some more. Not a peep. Not a whisper was heard about the 8.9 per cent tax increase from the DEMOCRATS who arrived at the increase because they added 20 new patronage jobs (some paying as much as 150K per year) over the past few years. No violent protest at the county building from Bob. Strange, right?
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
Well GB, all the dems do that. They walk into 'whatever rep territory' is left, and scold them for raising taxes and go back to their dem den and spend spend spend!!
'No change Godlewski' is just another recycled politician. I would be shocked if he ever won another election anywhere!!! He is retired and should remain that way.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Godlewski's not fully retired. Remember, he ran as a Democrat in Schenectady County and lost. For that try, he was appointed to a committee position. I don't remember, specifically, which committee it was, but it was right after he lost re-election.
OHHHH, but when the GOP has any kind of tax increase it sounds like rolling thunder at town hall, going so far to accuse Tommasone's brother of getting a special deal and favoritism on his assessment! What a clown act.
Now I think the town NEEDS to reduce spending too. i think they need to make some cuts and offer a little less to reighn in spending to keep the taxes level. I fault them for that since over the years the town has grown a little too fast. But at least Tommasone didn't hire a PR man, an events coordinator to have festivals (used to be done by volunteers but then you can't CONTROL it politically and take credit whena volunteer does it) and a "Youth commissioner."
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
Although the town board is long overdue for a raise, this is CLEARLY NOT the time to implement one. Mr. Tommasone should take the lead and say NO!! It would set an example.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Although the town board is long overdue for a raise, this is CLEARLY NOT the time to implement one. Mr. Tommasone should take the lead and say NO!! It would set an example.
From what I understood from previous meetings, he did take that into consideration and in fact, there are no raises in the budget for the Town Board.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
I'm not sure. Was that in the budget last year or not? And he's one of the ones that was pushing for the raises last year. He's just got to remember, elections come up this coming year.
I think that all Rotterdamians will be please to see no tax increase, to a slight increase depending on water districts this year. The budget should be on-line tomorrow at the town's website. http://www.rotterdamny.org.
We will have to see how our nation and state's economy plays out in the next year. Next year may be a different story.
ROTTERDAM Use of surplus trims tax increase Town had faced criticism at budget hearing BY JUSTIN MASON Gazette Reporter
Rotterdam officials tapped the town’s surplus to trim nearly all of the tax increase included in the preliminary 2009 budget. Town Board members unanimously adopted the $19.9 million budget, which will increase the general and highway fund levy by 1.74 percent. The spending plan allocates about $1.5 million from the town’s $3.7 million fund balance to drop the residential tax increase from the 8.53 percent projected in the preliminary budget. “In all my time on the board and as supervisor, this was one of the most difficult budgets,” Supervisor Steve Tommasone told about two dozen people attending the meeting Wednesday. The adopted budget sets a residential tax rate at about $3.39 per $1,000 of assessed value. Residents owning a $175,000 home will pay about $584 in town taxes, not including special districts. Under the town’s dual tax rate, commercial properties will realize a 2.3 percent decrease in taxes from the current year. Commercial properties will pay about $5.46 per $1,000 of assessed value, according to the spending plan. Tommasone said the budget also excludes spending on all big-ticket equipment for the town. Any major departmental expenditures of this nature will now need Town Board approval. “We will be looking very hard at large expenditures until the economy turns around,” he said. In spending more of the town’s surplus, Tommasone warned the nearly flat town taxes next year could make the 2010 budget even more painful. Eventually, he said, the town would need to make up for dipping into the surplus during this budget cycle. “We cannot duplicate this next year,” he said. Board member Joseph Signore agreed. He said the town now faces a $1.5 million hole that will need to be plugged somehow. “While we’ve enjoyed zero-percent tax increases for several years, continuously using the fund bal- ance will catch up to us,” he said. “And that’s being honest.” Board member John Silva wasn’t as pessimistic, but he said the board should do everything within its power to rein in costs. “There are ways for us to aggressively manage our expenses without knowing what our revenues will be,” he said. Board member John Mertz credited the budget for keeping taxes low. He said the town should start finding new ways to gain revenue. “It’s very important, especially with revenues, that we think outside the box,” he said. The decrease in the tax levy came after dozens of angry home and business owners spoke out against town spending last week during the budget hearing. Some argued the budgeted increases to non-contracted salaries were unwarranted during a year when town revenues are projected to drop, while others were critical of the budget for including new positions. Former board member Joseph Guidarelli, who spoke against the budget last week, credited the board with producing a fair spending plan. “When I left last week, I really felt like you guys listened,” he said.
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