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October 28, 2009

Tax-levy increase expected in Tupper Lake

By KIM SMITH DEDAM

TUPPER LAKE — Budget workshops show early signs of a 3.5-to-4-percent increase in the Town of Tupper Lake tax levy for 2010.

It is proving a tough year, given losses in home-sales revenue and interest, even though the budget is about $25,000 less than the $1,995,982 current spending plan.

The total budget — still a work in progress — stands at $1,970,213, Town Budget Officer Sandra Strader said ahead of the second work session Wednesday night.

TAX RATES
The town is looking to use $250,000 from the fund balance to lower the tax rates, which are also going up.

"We are looking at tax rates of $3 per $1,000 (of real property value) inside and $4.11 per $1,000 outside the village limits," Strader said.

Last year, tax rates were set at $2.81 inside and $3.96 outside village limits in Tupper Lake.

COST PRESSURES
The budget is being built under duress, with unspecified cuts in state aid, a drop in county revenue from housing sales, an increase in state-pension and health-care costs and a sharp drop in earned interest.

"We don't know what we'll get for state aid," Strader said. "We don't have any idea, so we didn't put in as much as we usually do. We usually get about $108,000, and we budgeted $90,000."

Interest dropped significantly.

"We had put in for interest in 2008 and received $14,974 from the NOW account checking. We've received $963 year to date," Strader said.

Representatives from the health-insurance company advised the town to plan for a 15-percent increase in costs, the worst-case scenario.

But final rates won't be out until the first week of November.

"And our state pension almost doubled," Strader said. "It went from around $39,000 to $61,000. That's your New York State Retirement."

Town employees will receive a $1,400 annual increase, in accordance with the standing Civil Service Employees Association union contract.

REVENUE DOWN
The biggest hit came from loss of real-estate revenue.

Mortgage tax received from Franklin County was $69,654 in 2008, Strader said.

"This year, to date, we've received $19,741, and we had budgeted for $80,000 because of the previous year."

Other revenues are off, as well.

While the Town Beach brought in $47,461 in 2008, it generated around $41,000 this summer.

"But we're fine as far as the budget goes. Supposedly, they did sign our Smart Growth form for a $100,000 grant. Hopefully, it will come in this year," Strader said.

Budget plans include a measure to trim building maintenance costs from $46,000 to $30,000, since much work was done this year.

RE-VAL REVIEW
Re-valuation in Tupper Lake is under independent review as part of a three-year cycle reset in 2008, when property values were tapped for nearly a 45-percent increase over a four-year period.

Outcry threatened legal action against the assessment figures.

The last formal assessment approved in Tupper Lake was in 2003.

BUDGET HEARING
Town budget planning workshops are open to the public, though no one has attended so far.

"Our doors are always open," Strader said. "If there are any questions, we're more than happy to help answer them."

A budget hearing is scheduled for 4 p.m. Nov. 9, before the regular Town Council meeting.

E-mail Kim Smith Dedam at: kdedam@pressrepublican.com

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