Tax levy to increase in Black Brook: Town budget increase blamed on insurance, retirement costs
Monday, Oct 19,2009, 7:14:10 PM Click:
Rising costs are blamed for an increase in the tax levy in the Town of Black Brook.
The tentative budget includes a 21-percent increase in the General Fund tax levy, from $424,999 to $513,537.
It also includes a 4-percent increase in the Highway Fund tax levy, from $576,243 to $599,700.
The levy is the amount of the budget that will be raised by property taxes.
Black Brook Town Supervisor Ricky Nolan said the tax-levy increases are largely due to anticipated increases in retirement and insurance costs.
"There are just some things you don't have any control over."
While the exact figures are not yet available, Nolan was told at a recent seminar that the town's insurance costs are projected to go up 14 to 16 percent.
Nolan said the town has had double-digit insurance-cost hikes in each of the seven years he has been in office.
The town expects to receive word on how much retirement costs will increase within a couple of weeks, Nolan said.
"We know the increase will be substantial."
Other costs also continue to rise, Nolan said. For example, the cost of a snowplow blade increased 50 percent last year.
Because of a rise in assessed property value, the tax rate for the general and highway funds will drop from $4.24 per $1,000 of assessed value to $3.58 per $1,000 and $4.18 per $1,000 to $4.13 per $1,000, respectively.
A person with a $100,000 home will pay $771 in highway and general fund taxes, while a person with a $60,000 home will pay $462.60.
Because tax rates fluctuate with assessments, tax levies are considered a better indicator of how much property owners' bills will change.
Full-time employees are to receive a 3-percent raise in the 2010 budget.
Elected officials declined pay increases, Nolan said, as most are retired or have other full-time jobs.
Nolan said he believes the decision not to plow county roads last winter will save money, but it will take another year to determine how much.
The town was obligated under contract to spend $70,000 on salt it didn't need after the decision not to plow the county roads, he said.
A public hearing on the budget will be held at 6 tonight at the Town Hall, 18 North Main St., AuSable Forks.
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