To: Mayor Connett and the Village Board of Trustees
For the Mayor and Village Board’s consideration, I am forwarding the tentative 2010-11 Operating Budget. I recommend further discussions with the Board to review all of the Capital Projects that have been discussed up to this point in order to create a priority list so we may all agree on the projects and their timing.
The tentative increase in the tax rate for this year’s budget is 2.84%. A large reason for this increase is due to the reduction in the taxable assessment, increase in mandated retirement contributions and reduction in revenues. Each department continues to include only items needed to maintain the highest level of service for the residents of Dobbs Ferry.
ASSESSMENT ROLL
The Assessment Roll for the 2010-11 fiscal year is $53,034,340, compared with $53,088,317 of the current fiscal year, or a decrease of 0.10%. Although there was some growth seen in assessments, the Village experienced the decrease due to the large number of assessment challenges, as well as the continued lowering of the equalization rate, which reduces special franchises.
Had the Assessment value remained the same, the tentative increase in the tax rate would have been less than 2.73%.
EXPENDITURES
In this tentative budget, the largest increase was due to the mandated retirement contribution for retirement. We had increases in other lines which are discussed below. The most important change is the process of changing our health insurance carrier from our present plan to the NYS plan. There are major advantages to this plan, the most of which is that we will not have to worry about a large payment because of no stop-loss insurance. The NYS Plan is a premium based plan.
The largest increase in expenditures is due to our contribution to the NYS retirement system. The next largest increase is short-term debt payments. We will be reviewing the transfer of this debt to long-term after the Village Board reviews the Capital project list and determines priorities. After this exercise we will be able to combine projects and create a bond issue which takes all of the chosen projects and produces an efficient debt schedule.
Governmental Function of the
Proposed Appropriation Increases Adopted
2008-09 Tentative
2009-10 Increase/
Decrease
General Government Support 2,223,495 2,307,561 84,066
Public Safety 4,078,776 4,093,905 15,129
Health 8,720 8,720 -0-
Transportation 1,210,117 1,160,085 -50,032
Economic Assistance 24,000 24,000 -0-
Culture & Recreation 1,071,803 1,072,537 734
Home and Community Services 1,165,802 1,171,432 5,630
Employee Benefits 3,618,700 3,847,200 228,500
Debt Service – Short Term 459,500 585,500 126,000
Debt Service – Long Term 1,248,049 1,246,302 -1,747
Subtotal 15,108,962 15,517,242 408,280
Library Fund 794,715 802,815 8,100
Total 15,903,677 16,320,057 416,380
REVENUES
Property taxes account for 67% of all Village revenue. Income from sales tax provides another 8.7%, with State Aid and departmental income combined at 7.7%.
Operating Revenues – 2009 Tentative Budget General Library Total
Other Property Tax Items 23,300 23,300
Non Property Tax Items 1,680,000 1,680,000
Departmental Income 986,000 17,200 1,003,200
Intergovernmental Charges 7,500 7,500
Use of Money and Property 61,500 61,500
Sale of Licenses and Permits 350,300 350,300
Fines and Forfeitures 275,000 275,000
Compensation for Losses 16,000 16,000
Miscellaneous 25,000 25,000
State Aid 217,700 217,700
Federal Aid 0 0
Appropriated Fund Balance 1,500,000 20,000 1,520,000
Real Property Taxes 10,374,942 765,615 11,140,557
Total 15,517,242 802,815 16,320,057
The largest increase in revenues besides real property taxes is Fines and Forfeitures. The largest decrease is due to the reduction in Sales Tax. Appropriated Fund Balance also has a reduction.
Governmental Function of the
Proposed Revenue Increases Adopted
2009-10 Tentative
2010-11 Increase/
Decrease
Other Property Tax Items 23,300 23,300 -0-
Non Property Tax Items 1,730,000 1,680,000 -50,000
Departmental Income 905,000 986,000 81,000
Intergovernmental Charges 7,500 7,500 -0-
Use of Money and Property 61,500 61,500 -0-
Sale of Licenses and Permits 350,300 350,300 -0-
Fines and Forfeitures 175,000 275,000 100,000
Compensation for Losses 16,000 16,000 -0-
Miscellaneous 5,000 25,000 20,000
State Aid 232,700 217,700 -15,000
Federal Aid 0 0 -0-
Appropriated Fund Balance 1,517,000 1,500,000 -17,000
Real Property Taxes 10,085,662 10,374,942 289,280
Subtotal 15,108,962 15,517,242 408,280
Library Fund 794,715 802,815 8,100
Total 15,903,677 16,320,057 416,380
TAX RATE
Overall, appropriations in the General Fund have increased by $408,280 or 2.70% primarily due to increases in retirement contributions, mandatory safety equipment/ medical exams for the fire department, cost for tax grievances, the MTA tax, and debt. The budget that I present for the Board’s consideration projects a total tax levy of $10,374,942. The proposed tax rate for the 2010-11 fiscal year is $210.59, or a 2.84% increase over last year. For example, a home assessed at the average assessment of $16,000 would pay an additional $92.96 for the year or $7.75 per month.
FINANCIAL PLAN
This tentative budget is presented as a starting point for informed policy making decisions. I have itemized some of the major items in this tentative 2010-11 budget, including some assumptions for your consideration:
Changes to Expenditures
• The current contract with our two unions is due to expire May 31, 2010. There are a number of items that may be discussed that will have a major effect on this and future budgets.
• The two unions as well as our current Medical insurance carrier have been notified of the Village’s intent to switch to the NYS plan. I have included this scenario into this budget. We all owe a great deal of gratitude to the Budget Committee who performed a lot of research into this item. The greatest impact will be recognized next year, but it has stabilized our cost for this year.
• When we were under the impression that we have seen a stabilization of retirement rates we have again been hit with a substantial increase in our retirement contribution. In order to curb future increases the State Comptroller has implemented a new tier and has increased the retirement age.
Major changes to Revenue Forecasts
• Decreased sales tax by $50,000
• Increased parking meter collection by $31,000 due to increasing the fee for selected time on certain lots.
• Increased some recreation fees total increase in line by $50,000
• Increased bails & fines by $100,000 due to a computerized collection system and collection of outstanding fines.
• Decreased mortgage tax by $15,000 due to the status of the housing market.
• Decreased appropriated fund balance by $17,000
In summary we had an increase in appropriations of $408,280. We had increases in revenues of $119,000. Therefore taxes had to increase by $289,280 in order to balance the budget. I have included a table below to reflect the differences in the tax rate by these changes in appropriations and revenues.
Description Amount Tax Rate Percentage
Revenues
Sales Tax (50,000) .943 .46%
Parking Meter collection 31,000 .585 .28%
Recreation fees 50,000 .943 .46%
Bails & Fines 100,000 1.89 .92%
Mortgage Tax (15,000) .283 .14%
Miscellaneous 20,000 .377 .18%
Appropriated fund balance (17,000) .32 .16%
Total Revenues 119,000 2.24 1.09%
Appropriations
Judgments and Claims 50,000 .943 .46%
MTA Tax 25,000 .47 .23%
Fire Department Safety 30,578 .576 .28%
Retirement Contribution 228,500 4.31 2.10%
Debt Service 126,000 2.38 1.16%
Reductions in other lines (51,798) .977 .48%
Total Appropriations 408,280 7.70 3.76%
Respectfully submitted,
Marcus Serrano
Village Administrator
March 23, 2010
