Town of Lowville tax levy rising 5.2 percent in 2010

LOWVILLE — The 2010 town budget will increase the townwide property tax levy by 5.2 percent and the tax rate by 3.6 percent.

The budget, adopted Thursday by the Lowville Town Council, also anticipates a 20 percent drop in non-property-tax revenues, most of it stemming from uncertainty over Maple Ridge Wind Farm funding.

"If we get the windmill money, it should make things easier next year," Town Supervisor Arleigh D. Rice said.

Revenue, excluding property taxes, is projected to drop by $140,035, from $691,640 to $551,605.

That includes a decrease in anticipated wind farm revenues from $143,000 to $45,000, 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. Rice said, he felt obliged to budget the so-called "fallback amount" — what the town would receive if Empire Zone benefits are not restored — to be fiscally prudent.

The budget also projects a drop in interest earnings from $22,050 to $6,020.

The tax levy, or amount to be raised by property taxes, will be $914,111, up $45,318 from $868,793 this year. Of that increase, $27,358 will be spread among all town taxpayers, while $17,960 will be covered by just those outside the village.

The full-value tax rate for village property owners will increase by 2.2 percent, from $3.12 per $1,000 of assessed value to $3.19. Those outside the village will see a rate increase from $6.28 to $6.51 per $1,000.

The town's taxable assessed value has increased from $203.3 million to $207.1 million.

The budget increases overall spending by $23,690, from $1,798,311 to $1,822,001; that's a 1.3 percent hike.

The budget uses $373,700 — up from $262,625 in the 2009 budget — from all town reserve accounts.

Officials said almost all of the increase in reserve fund use stems from the anticipated purchase of a new mower tractor to replace one that broke down this year. Paying for that raises capital spending from $88,000 this year to $190,000 in 2010, with the increase being covered by a boost in use of capital reserve funds from $11,900 this year to $114,700 next year.

Town officials expect to save $65,400 in debt service by paying off a five-year bond from the 2006 town office renovations a few years early. The town plans to pay off the debt using an expected $120,000 "buy-in" payment from the village to relocate its offices to the town's Bostwick Street facility, Mr. Rice said.

The town budget also expects $12,500 from the village to help offset building operational expenses.

Employee benefits are projected to increase by $39,560, from $214,940 to $254,500. About $10,000 of that stems from an increase in state retirement costs. That was offset by a drop in workers' compensation expenses from $24,747 to $15,655, Mr. Rice said.

BY THE NUMBERS

Town of Lowville's 2010 budget:

■ Budget: $1.82 million, up $23,690 (1.3 percent)

/ Tax levy: $914,111, up $45,318 (5.2 percent)

/ Tax rate per $1,000 of assessed value: in village, $3.19, up from $3.12; outside village, $6.51, up from $6.28