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November 18, 2009

North Elba tax levy up 2.4 percent

By KIM SMITH DEDAM

NORTH ELBA — With declining revenue, the tax levy here will increase 2.4 percent next year.

The total tax levy, which is the amount to be raised by taxes, is set at $3,820,040, slightly more than half of North Elba's $7.8 million town budget.

Town Supervisor Roby Politi spelled out the challenges ahead in a six-page letter to taxpayers.

"The greatest challenge that North Elba government now faces is not the controlling of expenditures but rather a significantly decreasing revenue stream."

The current economic downturn, he said, has hit the town's lucrative real-estate market, shrinking mortgage-tax revenue, interest income, building-permit revenue and landfill fees.

LOWER BUDGET
While the tax levy held steadily below the normal cost-of-living increase, the total budget dropped 21 percent from $9.8 million last year.

"Most of the $2.1 million decrease is related to the temporary postponement of capital expenditures at the Lake Placid Airport," Politi said.

An additional $230,000 was cut from highway expenses, and $137,000 was cut from park district costs.

The Town Council maintained a $15,000 appropriation for the Lake Placid Beautification Association, "which makes our community so very special."

REVENUE DOWN
Mortgage-tax revenue, set at $200,000, was down about 25 percent.

Politi said North Elba has seen a nearly $500,000 drop in real-estate revenue over the past two years.

The town was hit with an almost 40-percent shortfall in building-permit revenue and budgeted only $30,000 for related income in next year's budget.

The town budget anticipates a $14,250 decrease in hotel-voucher revenue at Craig Wood Golf Course and a total $155,800 decrease in transfer-station revenue.

RAISES, BENEFITS
Costs crept up as revenue dwindled. Health-insurance premiums rose 7 percent, though town employees hired after Jan. 1, 1991, pay about 25 percent toward health-care coverage.

Pay raises for non-union employees were set at 2.5 percent in the 2010 budget, down from 3.5 percent this year.

Union employees will receive a 45-cent hourly pay increase.

The supervisor and Town Council froze their salaries at 2009 levels.

OFFSETTING AMOUNTS
Sales-tax revenue from the county is estimated to add $284,000 to town coffers and will be used to offset the tax levy.

An additional $350,000 from the general-fund balance and $43,532 from North Elba's Park District Fund were also used to lower the tax levy.

By keeping the levy fairly steady, Politi said, projected 2010 tax rates will fall in each district.

"Taxpayers should see little change from the 2009 tax bills."

TAX RATES
Tax rates vary in five North Elba districts.

In Lake Placid, the tax rate is set at $1.25 per $1,000 of assessed property value, down almost 17 percent from $1.50 this year.

In the Saranac Lake section of North Elba, tax rates are 53 cents per thousand, down 34 percent from 81 cents.

In Fire District 1, the tax rate will be $1.92 per thousand, down 11.5 percent from $2.17 this year.

In Ray Brook, Fire District 2, the tax rate will be $2.18 per thousand, down 14.3 percent from $2.54 this year.

In Fire District 3, the tax rate will be $1.92 per thousand, down almost 11 percent from $2.15 this year.

2010 PLANS
No big projects or major capital expenditures are planned for 2010, Politi said, though North Elba is looking to purchase a new plastic/aluminum/glass bin for the town's recycling center at an anticipated cost of $6,000.

"Our economic challenges over the coming months and year are many," Politi said. "It is essential that we look to programs and services to ensure that efficiency and cost-effectiveness are standard operating procedures."

The Town Council adopted the spending plan last week.

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

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