Theresa levy to rise 50.4%; town expects sales tax drop

THERESA — The town tax levy will go up by 50.4 percent in 2010, owing to much lower projections for sales tax revenue, the town's largest source of income.

The budget includes a dramatic drop in projections for the town's share of Jefferson County sales tax revenue in 2010, predicting income will drop about 23.6 percent from a total of $403,122 collected in 2009 to just $298,026 in 2010.

Bookkeeper Corrine M. Klepacz, who drafted the budget, said she was aiming to be conservative given the town's dwindling fund balance and an uncertain economy. No projection of the town's likely fund balance at the end of the year was available.

Ms. Klepacz said Jefferson County Treasurer Nancy D. Brown had advised her to work with a possible 10 percent drop in sales tax income. She said she then spoke with Supervisor Clinton A. Coolidge and Town Clerk Kim A. Delles about the figures.

"He said go conservative and that's what we did," she said.

Although information about the fund balance wasn't available, the town's capital reserve funds — set aside for expenses like road repairs and other capital projects — total $200,524.3.

The levy will increase by $86,252, from $171,148 in 2009 to $257,400 in 2010.

The tax rate will increase 86 cents per $1,000 of assessed property value, or about 47.8 percent, from 2009's $1.80 to $2.66 in 2010. Those figures exclude the fire district tax.

That means the tax on a house assessed at $100,000 will go from $180 in 2009 to $266 in 2010.

Those higher tax figures come despite lower budgeted expenditures in 2010. Total appropriations will decrease about 9.8 percent, from $1,572,287 in 2009 to $1,418,731 in 2010.

General fund expenditures will account for $498,583 of that amount, down 2.3 percent from $510,128 in 2009; highway department expenses will total $706,387, down 12.9 percent from 2009's $810,990.

All town taxpayers pay the same rate; the 2010 budget applies reserve funds to pick up what would be added costs for property owners in the town outside the village. Usually, those residents pay more in town taxes, because they rely on the town, rather than the village, for certain services.

The higher town tax bills in 2010 will be partially offset by a drop in the levy and tax rate from the fire district, which includes all town residents.

The fire district levy will drop from $172,568 in 2009 to $150,774 in 2010, or about 12.6 percent. The tax rate will drop from $1.78 in 2009 to $1.52 in 2010.

That will put the total combined tax rate, for the town and the fire district, at $4.18 per $1,000 of assessed value in 2010, over $3.58 in 2009.

"The fire department — they were a big, huge help for us, for the people of Theresa," Ms. Klepacz said.