In work session, town board members debate what residents want in 2010 budget

November 20, 2009
by Christine Yeres

On Tuesday, November 24, residents are invited to offer their comments on the proposed budget during a public hearing at 7:45 p.m. at town hall. Town board members will vote to approve a final budget two weeks later, on December 8. At last Tuesday’s work session, board members were still struggling to decide whether to commit the town to once-a-week garbage collection in order to bring a 4% tax increase down to 1.5%, and whether to whittle that 1.5% increase down to zero by using more reserve monies.

Board member Robin Stout reiterated his belief that reserve funds are for a rainy day, and that the rainy day is here. Town Administrator Gennaro Faiella stressed his preference for keeping as much as possible in the reserve fund as a hedge against possibly worse economic times in 2011.

Disagreement over reducing garbage collection to once a week

Board members have received emails and have spoken to residents on both sides of the issue.  “Some tell us that for [a per household annual saving of] $36, it’s not worth it to give up,” said Town Supervisor Barbara Gerrard.  “Others think it’s fine.”

Faiella inquired of Theresa Markley, clerk of the school district, how many households in the district included school-age children.  She responded that there were 2,375, he reported, and concluded that “about half the homes in the school district do not have any children, and if you are an empty nester your sanitation needs are less.”

“I’ve talked to about 50 people,” added Councilmember Michael Wolfensohn.  “Reaction is very mixed, and people are passionate about it.  Some say, ‘I might not really need the second [garbage] pick up, but I like the fact that if I forget one day, there’s another [in the same week].  One of my neighbors freezes her garbage in her freezer [to minimize the scent of decomposing live garbage].”

Wolfensohn asked Faiella, “If someone does need an additional pick up because of a party, for example, could that person get an additional pick up or drop the garbage off somewhere?”  Absolutely not, Faiella responded.  “The [single dumpster for recycling center use] down there now is already filled every day,” explained board member John Buckley, adding, “The people I talk to are not mainly concerned with recycling or convenience, but that it’s only a saving of $36 per year, that’s the one thing that gets their attention.”  Wolfensohn agreed, saying that people “are not that impressed” with the $36 savings.

Gerrard calls on board members to make some decisions

Gerrard told the board members that they needed to resolve both the fund balance and garbage issues. Stout noted, “There are pros and cons [to once a week garbage collection], but we are somewhere near the trough of a budget crisis and that’s where you try to cut back where you can, so [one day a week garbage pick up] is attractive.  [On the other hand], when you talk to people who are against it and tell them about what people are willing to do in terms of recycling, they turn [their views] around. Many people are proud of how much they recycle. So that second collection is often pretty light.”

On the issue of the use of reserve monies, Stout suggested that if the town could draw further on the reserve fund, the town could see a zero tax increase.

Faiella reminded board members that the 27% general fund reserve – about $6.9 million –  is partly spoken for. “This year the school tax collection shortfall[money the town had to advance to cover delayed payments of school taxes] was around $1.1 million. Next year it may be as high as $1.8 million.” So the amount of discretionary reserve is closer to $4.9 million.

Is a zero budget increase important to residents?

Stout stated: “My unhappiness is that I thought there was a really serious and clear message on election day: ‘Taxes have to go down.’  If we, as a town board, don’t do it, then we won’t be here in four years and somebody else will take an axe to this budget.  So what would it take to get the [tax increase] number to zero rather than the 4%? What would it take to be able to stand in front of the town and say that with one garbage collection per week, and using a certain amount of the reserve fund, we could keep the tax increase to zero?  Though I agree you don’t want to go too low in the fund balance.”

Wolfensohn responded: “I think we have truly taken an axe to the budget. Taking an axe to the fund balance is only a quick fix – and once it’s gone, it’s gone.”

Stout countered: “Everybody worked really hard and we dropped $350,000 out of a $35 million budget, but that’s a 1% drop.”

Supervisor Gerrard interjected: “But we did much more than that.”

Faiella filled in the details. “We cut overall spending by only 1%, but benefits went up $800,000 and not only did I not pass those on to taxpayers, but I cut $350,000 in services. That’s a $1.2 million spread.”  In the tentative budget Faiella has already recommended that $900,000 of the reserve fund be used to keep taxes down..

Gerrard commented: “I understand what you said about November 3. So even if not to zero, we need to reduce [the tax increase] somewhat.

Stout expressed his concern: “I’m worried that people will come storming the gates saying, ‘The town board spent nine months and wrung out 1%,’ and then they’ll tell us to drop 8 percent from everywhere.”

Wolfensohn suggested: “But next year I think we’ll need that fund balance more than this year.”

Stout disagreed: “I’m not convinced that 2010 will be worse. Yes, there would be less of a rainy day cushion [if we spent more reserve now].”

Wolfensohn stated: “I would rather cut than dip into the fund balance.”

John Buckley pointed out: “Looking at the rate of decline [in the fund balance] back to 1999, there’s been a decline, and we have the identical conversation every year.  I think people will see [in this budget] how we’re leading the town to a secure future.  My hat’s off to Jerry, Penny and the department heads.”

Gerrard noted: “Ed Brancati [supervisor of Lewisboro, a Democrat] had to raise taxes 27% because the previous [Republican] administration had emptied out the fund balance.  Brancati lost [in the November 3, 2009 elections].”

Gerrard continued, “Governor Patterson spoke on CBS radio today. Apparently New York State is not as bad off as ten other states. Hawaii has gone to a four-day-a-week school week to cut teacher costs.  Let me ask this: Other than Robin [Stout], does anyone else want to look at using a little bit more of the fund balance?”

Question left unanswered

Gerrard reiterated: “Jerry is using $900,000 to come to the current 4% increase [1.5% if garbage collection is reduced].”

Faiella pointed out: “Some of the drivers of the budget were working against us: pension increases and the MTA tax were $500,000.”

Stout reported: “What people say to me [about that] is, ‘OK, so fire people. [You] have control over [the number of] employees.’ That’s what people tell me.”

Buckley interjected: “Should we decide the garbage pick up issue first?”

Wolfensohn responded: “Yes, the fund balance and garbage questions are tangled.”

Gerrard suggested: “Should we wait to hear what the public has to say at the budget hearing [on Tuesday, November 24]?

Buckley agreed: “I want to hear more. I’ve heard a lot and I’m not decided.”

Wolfensohn agreed with Buckley: “I want to do what the residents want to do. I’m of the mind that the overall savings is significant [$200,000]. If it were up to me, personally, I would be in favor of once-a-week collection, but it’s understandable that people might feel that saving the $36 [per household, per year by reducing collection] is not significant enough.”

Gerrard pointed out: “[Board members] would have no problem with once a week collection for their own families. The Sustainability Advisory Board and the seniors are comfortable with it. But some residents take it almost as an insult, as if to say, ‘Is this the best you can do?’”

Faiella noted: “But Robin is saying that the message is clear – ‘no more taxes’ – and yet people are saying ‘I’m giving up a garbage pick up for only $36 savings?’ Well, then, what do you want to do?”

Wolfensohn concluded: “We were asked to bring a preliminary budget to residents, so we laid it out there to review and comment on. If, after this, residents say ‘Thanks, but no thanks,’ to the $36 saving, then OK, that’s what government does. We’ve done our job [by finding out what they want].”

The board agreed that they needed to hear what residents have to say at Tuesday’s public hearing.  Stout asked Faiella to provide a chart showing what effect drawing down more of the reserve fund would have on the tax increase. Faiella agreed to provide this information on Tuesday, November 24, in time for the public hearing on the 2010 budget.

Feel ready to take a little survey on the budget?  Just five questions.  Give us your two cents in two minutes.  Click here: 2010 Town Budget Survey

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The public hearing on the budget is set to take place in a town board meeting of Tuesday, November 24.  The board will vote to adopt a budget in their meeting on Tuesday, December 8. 

For more NCNOW.org articles and letters on the 2009 budget, click HERE.  Below are email addresses for Mr. Faiella and town board members:

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