WE ARE NOT IN A BUDGET CRISIS…… We do not have cash deficits, have not

exceeded our property or appropriation cap and despite a decrease in ratables and smaller surplus have been able to put together a reasonable and responsible budget for our taxpayers.

We are not hiding information……if you want to know something ask.

The Process - The 2010 municipal budget process began in

November 2009 with departmental budget hearings.

The Mayor’s proposed 2010 budget was presented to the Council by the January 15, 2010 deadline even though that deadline has since been extended by the Division of Local Government Services.

The Mayor’s budget information is based heavily on information accumulated from our Annual Debt Statement and Annual Financial Statement which have been properly filed at the State.

The Mayor’s proposed budget can and will change. It always does…….why?

We just finalized the ratable figure because of the one-time reassessment.

State aid figures have not been released. This will not affect our levy cap because we get a credit for this.

We expect to realize savings in health insurance, vehicle fuel and possibly storm control.

2010 Budget Summary – The proposed 2010 budget reflects a

decrease in overall expenditures by $45,334. The municipal tax rate is .616 as compared

to .492 in 2009. The annual municipal tax increase is $50.84

for a home assessed at the average of $312,000. Average municipal taxes were $1,871.08 in 2009 and are $1,921.92 in 2010.

The tax dollar percentage increase is 2.71%. One tax point = $304,000 or $30

2010 Budget Summary – Because of the drop in home market

values, our ratable base decreased 16.29%. We just got a final figure last week which resulted in a slightly further decrease to 16.89%.

The budget is within the property tax levy cap.

The budget is within the annual appropriation CAP. We have $166,000 remaining in the bank and we did use the previous two years CAP bank.

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How does this compare to our prior municipal budgets?

The average increase from 2000 to 2010 has been $90.54 and 6.95%.

Departmental budgets are 7.77% below what they were in 2000.

8 departments or 40% are below 2000 salary levels.

2010 Budget Summary – Sanitation The sanitation district budget will see an

increase of $83.43 per year for the average homeowner. The total sanitation bill will increase to $296.40 per year.

The increase is attributable to a decrease in surplus, reduced host benefit fees, increased wages and increased disposal costs of 4% via the MUA.

We are unable to meet the property tax levy requirement and will be applying for a waiver citing public health, safety and welfare concerns.

Overview of sanitation tax rates:o 1999 to 2001 - .116o 2002 to 2003 - .105 o 2004 to 2007 - .101o 2008 (revaluation) - .057o 2009 - .056We have been able to sustain sanitation

without tax increases during this eleven year period.

Surplus: Our surplus balance at 12/31/09 was $3,204,987

which was $914,641 or 22.20% lower than it was at 12/31/08. Why?

We used almost $3,000,000 or 72% in our 2009 budget.

We utilized available budget balances at year-end to cover salary increases we didn’t budget for, resulting in fewer cancellations

We had very little added assessment revenue.

Our ten year average surplus balance from 2000 – 2009 was $3,740,882…keep in mind that for many of these years we were expanding.

What helped surplus? Our tax collection rate was 98.53%.

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Revenue Summary – Surplus – Decreased $741,310 because of less

available at 12/31/09 Delinquent Taxes – Increased $34,000 based

upon the tax receivable balance at 12/31/09 Local Revenues – Decreased $122,886 primarily

based upon a drop in municipal court revenue and interest on investments

Hotel Tax Revenues – Decreased $10,676 based upon prior year collections

Tax Revenues – Increased $859,891 to balance the budget

Local Revenues4%

State Aid10%

UCC Fees1%

Other Items4%

Taxes73%

Surplus8%

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Changes in expenditures: Salaries/Benefits – Increased $616,260 based

upon negotiated contract settlements Library – 1/3 mil requirement decreased by

$41,747 Pension Contributions – Increased $108,136 as

determined by the Division of Pensions Reserve for Uncollected Taxes – Decreased

$485,383 in order to meet the levy CAP Debt Service – Increased $91,759 based upon our

debt schedules for existing debt Utilities – Increased $47,786 primarily for vehicle

fuel

Changes in expenditures (continued): General Insurance – Increased $42,152

because of a JIF premium increase Departmental Budgets – Decreased

$71,637 primarily attributed to the one-time reassessment funding that isn’t needed in 2010

Accumulated Absence Trust – Decreased $100,000 because we have $165,000 on hand in the trust fund at 12/31/09

Moving into 2010:We have:o $347,000 on hand for tax appeals at 12/31 o $165,000 in our accumulated absence trust fund for

retirement payoutso $954,988 remaining in surplus to ensure that we will

regenerate what we use in the 2010 budgeto We have used many balances on hand in trust funds

and various deposits to reduce 2010 budget requests as feasible

o We will be making application to the LFB for a refunding ordinance for tax appeals ….the temporary appropriation is on for discussion tonight.

o We need to keep the budget open for state aid, other budget changes and most importantly tax appeals.