RSS 2.0 FeedJanuary 13, 2011, Freeport-Baldwin Leader
Final village budget vote postponed until January 18
Proposed tax rate increase of 4.7% has caused considerable confusion.
After a three-hour, sometimes contentious hearing Monday on the proposed 62.3 million fiscal year 2011-12 budget where several residents cited errors and confusion over numerous line items, Freeport village trustees postponed a final vote until 8 a.m. Tuesday
At a second hearing following the budget discussion, the board approved the annual contract with the Freeport Volunteer Fire Department for $126,000. The amount has remained unchanged for many years.
At the start of the hearing, budget consultant David Tanner, a representative of Liberty Capital Services, presented the budget details, noting that village officials had hoped to offer a 0% tax increase but, “unfortunately, in light of economic conditions,” a 3.89% tax increase is projected.
The figure given for the proposed tax rate, 4.7%, caused considerable confusion as to what the precise effect will be on individual taxpayers.
Audience member and former Deputy Village Attorney Stephen Malone asked, “Is the bill up by 3.89 or 4.7%?”
The figure of $57.44 per $100 valuation was cited in the budget message by Mayor Andrew Hardwick. Mr. Tanner said taxpayers “need to know what their assessed value will be” to determine their exact tax bill. “Assessed valuation affects the tax rate.”
A tax increase of $148 per year for the average home was estimated.
According to the budget figures, the taxable assessed valuation for Freeport is about $70.9 million.
About $40.7 million of the budget is expected to be raised through taxation, with about $21.57 million coming from other revenues.
The mayor’s budget report states the budget:
• Holds the line on all expenditures, except for contractually mandated increases and those necessary to restore fiscal stability. There were few increases in the budgets of the various departments, but increases are expected over the next two years for the village’s contribution to the state retirement system. Other increases included $35,000 for the village election on March 15.
• Reduces the village’s dependency on borrowing funds by $250,000 to balance its annual general fund budget.
• Limits the village’s reliance on borrowing to pay for successful tax certiorari cases by increasing budget appropriations by $250,000.
• Establishes a $10.23 million five-year capital plan, 75% of which will be funded mainly through grants. Several capital items were removed from this year’s operating budget.
• Eliminates the village’s dependence on appropriating fund balance.
• Maintains a $1.025 million budget contingency to assure year-end favorable results and continued improved fiscal responsibility.
• Establishes reserve accounts for future benefits payments. Two different reserve accounts are planned: a capital account with initial funding of $10,000, and a retirement reserve, also with a $10,000 contribution.
• Allows the village to fund three new police officers (who will fill positions already vacant) at a cost of $194,000.
• Provides for a villagewide 311 emergency calling system.
Mr. Malone also charged that the mayor’s office was “over budget” and questioned the need for six messengers at a cost of $290,540. “Six messengers in a building this size makes no sense,” he said.
He also noted that a line item for a chief of staff was listed under the Mayor’s Office section and asked if there is currently a chief of staff, but received no response.
Former Treasurer Vilma Lancaster criticized the use of the budget statement as a document “for political bashing” (of the former administration) and urged him to correct his message.
Ms. Lancaster also said the village “did not have a $3 million shortfall” inherited from the [William] Glacken administration as was implied in the budget message. Trustee William White declared that “the $3 million shortfall has been fiction from day one.”
The former treasurer also said there are several minor errors in various line items and added that more funds should have been budgeted for medical insurance, though the administration “did a good job on the revenue side.”
Village Attorney Howard Colton said the village would be switching to a health insurance organization (HMO) from the private insurance now in use.
Peggy Lester said she did not see a discretionary fund for expenses from the mayor’s trips to Germany and China and asked what funds were used.
Mayor Hardwick said there was not specific fund but “We look and see where there is available funding to do so. A contingency fund is based on savings in various other areas without hurting the budget.”
He noted that a $300,000 surplus is anticipated in the budget.
Mr. Colton added that he could provide the information but that “We don’t have the exact figures tonight.”
After a few other speakers made their comments, trustees discussed postponing the vote until corrections were made to the budget.
Mr. Colton advised that the budget hearing could be continued, but had to be completed by January 20 under state law. The village board would have to adopt the budget by February 1.
Trustees then voted to close the hearing and reconvene next Tuesday, January 18, for the final vote.
