Lewis budget ups levy by 3.5%

LOWVILLE — Lewis County's 2010 tentative budget drops spending slightly but increases the tax levy by 3.5 percent.

It also includes no layoffs.

"It took a lot to get there," said County Manager David H. Pendergast, who presented the proposed spending plan to legislators Tuesday evening. "When called upon, the department heads, realizing the seriousness of our situation, responded within a 24-hour period to get the reductions needed to keep us at essentially the 2009 budget level."

General fund spending in the tentative budget would be $43.67 million, down $351,693 from this year's $44.02 million. That's a 0.8 percent drop.

However, revenue from sources other than local property taxes is projected to decrease by $774,116, from $30.87 million to $30.1 million. To close that gap, the tax levy, or amount to be raised by property taxes, will rise by $422,483, from $11.99 million to $12.42 million.

Thanks to an increase in countywide taxable value from $1.71 billion to $1.83 billion, the full-value tax rate would drop from $7 per $1,000 of assessed value to $6.80 per $1,000. That's a decrease of 2.86 percent. The increase in taxable value in the county was attributed both to new construction and increasing property assessments.

The tentative budget calls for $1,156,502 to be used from the county's fund balance to keep taxes down. That's the same as was used in the 2009 budget.

The proposed budget includes no employee raises, except for contractually obligated ones to unionized Sheriff's Department employees and longevity and grade-step allowances, Mr. Pendergast said.

While the 2009 budget included $170,497 in funding to other contractual agencies, such as libraries, the 2010 tentative budget includes no support for these groups, Mr. Pendergast said.

"I'll leave those discussions and decisions to this legislative body," he said.

Nearly $2.6 million has been trimmed from the proposed general fund budget since an Oct. 22 legislative Ways and Means Committee meeting, when committee members asked Mr. Pendergast to keep general fund spending about the same as in this year's budget.

Overall spending — including highway funds — would decrease by 0.5 percent from $51.27 million to $51.02 million under the tentative budget.

Combined highway and road machinery funding would increase from $7.25 million to $7.35 million, while highway revenues are projected to drop from $7.06 million to $6.95 million. To make up the difference, highway reserve fund use would increase from $191,000 to $399,503.

The proposed budget projects a sharp drop in revenue from the Maple Ridge Wind Farm — $2.16 million to $623,203 — just in case the facility does not maintain the state Empire Zone status that's central to its payment deal with local governments. Empire State Development Corp. in May chose to "decertify" numerous businesses, including Flat Rock Wind Power LLC, the name under which Maple Ridge Wind Farm was incorporated. While the company is appealing that decision, Mr. Pendergast said he budgeted for the worst-case scenario.

The tentative budget also anticipates sales tax revenues of $8.2 million — down from $9 million — to reflect stagnant sales figures experienced so far this year.

The proposed spending plan anticipates $835,704 from Lewis County General Hospital as a repayment of county money that helped keep the facility financially afloat in the 1990s. The county received nearly $3 million from the county-owned hospital in 2008 but none this year.

Federal funding is projected to increase by $743,846, from $4.08 million to $4.82 million. However, state funding is expected to drop by $176,826, from $6.54 million to $6.36 million.

A public hearing on the tentative budget is scheduled for 5 p.m. Nov. 18 in the second-floor board room at the county office building on North State Street. Legislators will hold several work sessions prior to that meeting to discuss possible amendments.