North East preps budget for public hearing

NORTH EAST — The Town Board has been busy tweaking its budget in anticipation of the public hearing scheduled for Thursday, Nov. 4, at 7 p.m. at Town Hall. According to town Supervisor Dave Sherman, the task has been far from easy.

“We’ve been finding this to be a difficult budget year for the town more so than last year,� he said. “There are some significant aspects that have come up that relate to costs coming our way that are difficult to avoid that we really cannot put off to another year.�

Some of those things include increases from the state’s retirement system contributions and the “burgeoning number of people� entering that system, according to Sherman. In fact, the town’s commitment increased $10,000 for its “A fund,� from $20,000 to $30,000, and another $8,000 in its highway fund.

“So essentially our increases in retirement fund expenses jumped $18,000,� Sherman said. “Those are very significant increases.�

Then there are the rising costs for hospital medical insurance, which the town provides to five, full-time employees.

“We’ve been looking at increases around the 15 percent range as projected by our insurance provider,� Sherman said, adding he was thankful there weren’t more full-time employees in need of such coverage.

Another dent in the budget for 2011 is being made by the county charging the town for election costs. The Town Board budgeted $4,700 for that purpose, although the supervisor said he’s not sure what the town will end up being billed for that new expense.

Additionally, the town has to complete the property revaluation project undertaken by the assessor’s office, as well as payment for that project. Sherman said the town is doing that “without creating any additional borrowing.� The town estimated roughly $13,700 would provide for the financing of that project; that figure is therefore included in the 2011 budget.

A request from the justice court to provide additional hours for one part-time clerk, two justices and their case load is also being considered. The extra time would amount to roughly $3,000 more in the budget.

Overall, Sherman said the revenues would remain “pretty stable� compared to 2010, but interest on the budget is not expected to earn as much. Likewise, expenses will be fairly well-balanced in the highway fund. There is an anticipated expense increase in the A and B funds of around $3,500 for both (and that’s with cutbacks). Some debt services are being paid off, including a last piece of highway equipment and bond service for the water district. A 1 percent cost of living increase is being added to salaries; higher raises were considered but couldn’t be justified in light of the town’s budget. According to the preliminary budget for 2011, the amount to be raised by taxes is $1,700,364.

“We’re trying to keep the town in very sound fiscal condition and have been applying as much of our rainy day funds to support the budget as we can,� Sherman said, adding the town is anticipating a 3 percent tax rate. “We strove last year to not have an increase … which meant that some things are costing us a little more, but we’re at the point where we can’t absorb much more. Faced with additional costs, we can’t maintain operations and sustain that same level. I think the board feels we’ve done as much as we can to cut expenses.�

After the Nov. 4 public hearing the Town Board will deliberate and consider any other changes before sending a copy of the budget onto the county by the Nov. 20 deadline. The county will then begin its review process and adopt the budget by early December, after which the real property tax calculations will begin.

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