Town Board adopts 2019 budget on a cold, snowy night

PINE PLAINS — Despite a nasty Nor’easter that kept the public away, the Pine Plains Town Board made it to Town Hall to adopt its 2019 municipal budget on Thursday evening, Nov. 15.

“We should not have done it, but we had all these important things to get passed,” said town Supervisor Darrah Cloud about braving the elements. “Nobody was there.”

Only those who really counted, namely the board members who could approve the final fiscal plan attended. And that’s exactly what happened. The final budget is a mirror image of the preliminary budget presented to local residents on Monday, Oct. 29.

“It’s exactly the same,” said Cloud, adding the board will “have further discussion with our Highway Department about how to distribute those funds. We may have to move some money around in the parameters of the highway budget, but the money will be the same.”

By law, the budget must be finalized by Tuesday, Nov. 20. The highway details are expected to be hashed out by then. Highway Superintendent Heather Wilson is looking to hire a fourth laborer to work full time.

The Highway Department’s budget for 2019 is $737,859, with a tax levy of $786,515.

The street lighting fund budget line for 2019 remained the same as it was this year, at $30,000, with a tax levy of $30,000.

The water district’s budget for 2019 is $102,500, with a tax levy of $35,780.

2019 appropriations for the general fund, meanwhile, are $1,190,015, with a tax levy of $786,515.

Total appropriations for 2019 come in at $2,099,679, with a tax levy of $1.41 million and a tax increase of 1.66 percent.

With a new board elected last November, this was the first budget for many, including Cloud.

“I spent many long hours on it. I sweated over it,” she said. “The town is in good shape; it was left in good shape by both previous supervisors.”

Cloud said, though, she wanted to “take a different approach toward managing the money just a little more.”

What would that look like? It would gradually stop taking money from the town’s fund balance to make up for budget shortfalls.

“I would like to manage the fund balance more with investment, so we can make interest — money that can stockpile for a rainy day,” she said. “My hope is at some point, and it will take a few years. If we can stop taking from the fund balance, and have enough in the account that draws a good interest rate, then we can start to lower taxes.”

Cloud said the idea is “totally feasible,” noting that innovative towns like Ancram have done so. 

“It’s not like the old days, of 5 to 8 percent, but it’s considerably better than in a long time and makes it worthwhile to put money into investments,” she said, adding the investments are completely liquid in case “something terrible happens with the budget.”

The supervisor expanded on her theory.

“The school of thought is that you keep half of your budget in the fund balance in case of an emergency. This is for people too, you should always have half of what you spend in a year in savings,” she said. “That goes for municipalities, and that money can draw interest.”

Depending on how much is invested, the town could make a pretty penny. For $500,000 worth of investment, the town might make 1.6 percent; for $1 million, it could earn up to 1.9 percent. Currently, the town is earning .1 or .2 percent.

“It’s pretty dismal,” said Cloud. “Think about it, with $500,000 at 1 percent, it’s $5,000. A little town like Pine Plains can do an awful lot with $5,000.

In addition to planning for future investments, the new budget “hardly cut” any services now offered. 

“We’ve kept it status quo,” said Cloud, who added that workers’ compensation, health insurance and unallocated insurance (on trucks and cars) costs have all risen dramatically. Health insurance spiked by 14 percent and unallocated insurance by 20 percent. And the town still has to wait and see how fuel costs will affect the bottom line.

To counter expenses, Cloud said she’s “looking for any kind of revenue that I can find.” One source — sales tax, which is up in the county, she said. The town, of course, only gets a piece of that pie.

Cloud also said of note in the town’s budgeting, it’s managed to continue to support senior programs. There’s $10,000 in the budget to take local seniors on trips. This year seniors went to see “Sister Act 2” at the Westchester Broadway Theatre. They also went to a casino and out to lunch on occasion.

Programing at the library is also continuing. The library budget line amounts to $86,550, up $3,650 from the 2018 budget.

“It’s the heart of life here,” said Cloud of the library. “I’m really happy about that.”

To view the budget, go online to www.pineplains-ny.gov or to Town Hall at 3284 Route 199.

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