Fiscal Year 2008’s Draft Budget | April 11, 2007
Fiscal Year 2008’s Draft Budget The Board of Trustees will hold a Public Hearing on the proposed budget for FY2008 on Wednesday, April 11, at 7:30 p.m. Following is an analysis of some of the budget items, with some questions which will be presented to the BOT.

Summary - Note all comparisons are between the projected budget for 2008 [June 1, 2007 to May 31, 2008] and the actual numbers for the Fiscal Year ending on May 31, 2005 [Mayor Krober’s last year in office].

Revenue highlights: The Village has two sources of revenues - Property Taxes and All Other:

2005 Property Tax Revenues $2,367,276 2008 Property Tax Revenues $3,094,951
2005 All Other Revenues $322,534 2008 All Other Revenue $243,190

Analysis: Property Taxes show a 31% increase over 3 years, while Other Revenues show a 25% decrease. The total value of all Village realty in 2005 was $75,314,675. For purposes of the 2008 budget, it shows $75,224,022 or a slight decline over three years. Why? Because the current Administration has chosen not to reassess any properties that have not undergone some form of construction, and a number of homes have had their assessments reduced in the last two years through the grievance process.

Expenditure highlights in order of magnitude are as follows:

Shared Services (mainly Village property maintenance and repair)
2005 Shared Services $97,573 2008 Shared Services $299,225 - Increase 207%

Analysis: The $299,225 includes $75,000 to repair the Wee Wah dam. This is needed, but the current fiscal year has $63,000 in it for the Wee Wah Dam repairs and not a penny has been spent as of the end of March. Will the $63,000 be spent this fiscal year on the needed repairs? Or will it be applied to other costs? The prudent approach would be to create a reserve fund for infrastructure repairs.

2005 Special Items $77,110 2008 Special Items $145,000 – Increase 88%

Analysis: Included in the $145,000 is $50,000 for “contingency”. Although it is always prudent to build in the Village budget for contingencies, the current budget has $40,000 allocated for this purpose and none has been spent so far. How will the current year’s $40,000 get spent in the remaining two months, and if it is not going to be spent, why do we need another $50,000 in the 2008 budget?

2005 Legal Fees $45,457 2008 Legal Fees $75,000 – Increase 65%

Analysis: Why have the Village’s non-reimbursed legal fees grown by 65% over three years? I do not have the answer, and this should be asked of the current Administration.

2005 Mayor’s Expenditures $zero 2008 Mayor’s Expenditures $5,050

Analysis: This account was created to provide funding for an outside negotiator to work on the Police Department union contract as well as the DPW union contract. This is the first Administration in the history of the Village where the mayor did not represent the Village interests in the union negotiations.

Garbage Removal Contract

Analysis: Currently, the Village pays $11,000 per month or $132,000 per year for resident garbage removal and recycling. This Contract expires in May and will obviously be subjected to a meaningful increase due to rising fuel and labor costs, most likely in the 25% to 35% range. Even using the mid point of this projected rate increase range of 30%, no where in the current budget has the Administration accounted for what will be about a $40,000 increase in garbage removal costs.

2008 Water Plant Budget Shortfall – 24% Rate Increase Needed

In 2005, Water Revenues were $447,363. One year later, the Water Revenues in 2006 increased to $453,797 or 1.4%. Assuming the current fiscal year revenues grow by the same amount, they will total $460,150 for 2007 and reach $466,600 in 2008. However, the expenditures for 2008 are projected to total $576,529 creating a cost gap of $109,930. This can only be closed by a rate increase of some 24% as noted in the draft 2008 budget. Does the Mayor intend to publicly address the necessity for a rate increase before or after the June elections?

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