2008 Budget Presentation-September [179.64K]

September 19, 2007 To: Debbie Draw       Linda Kohl       Jim Mulley       Marcia Sugumele From: Supervisor George Wiedemer Re: Supervisor’s Tentative Budget Proposal for 2008  The 2008 Supervisor’s Tentative Budget, summarized in the attached, proposes no property tax increase for 2008. The property tax rate will be $2.94. A major impact on 2008 expenses is the full funding of the retirement cost at 9% of salary, a 10% increase in the medical insurance cost, and a 2.73% in the salary expense to reflect the increase in the Consumer Price Index.  All departments have cooperated in controlling expenses and with growth in the property tax assessment of 1.5%, the Tentative Budget will adequately fund operations based on no tax increase in the property tax rate.        Revenue projections for 2008 reflect a lower revenue balance for the fiscal year.  This is a result of the decrease of $50,000 earned from mortgage tax, a decrease of $100,000 in income from other Government Services, and modest income from Sales Tax. The Town continues to benefit from lower costs as a result of quality improvement programs that help insure we receive the most value for the money spent.  The proposed 2008 budget of $15.2 million is about the same as 2007. Salaries and benefits continue to make up over 64% of our total budget. The change in 2008 salaries includes a structure change of 2.73% based on the annual change in the Consumer Price Index for the Northeast Region. Benefits are up approximately 2.78%, which reflects the full funding of the State Retirement system, and an increase of 10% in medical cost for 2008.  The Monroe County Mortgage Tax paid directly to the Town is projected to be about $1,000,000 for 2007, which is down $50,000 from this year’s budget. The recent decline in refinancing mortgages and the aggressive home building market is expected to continue but at a slower rate in 2008 then it has been in the past.  Property tax revenues are projected to increase $101,030 over 2007. This reflects an increase in the assessed value of 1.44%. With the increase in our taxable assessment, and control of spending, the Town of Penfield will be able to have no tax increase for 2008. We were able to do this even with increase cost of retirement and medical costs, and a 2.73% increase in inflation, which has added significantly to our expenditures for next year.    The Town staff has done another outstanding job, working under the direction of Bob Beedon, assisting with the preparation of this Tentative Budget for 2008. I am confident that the staff will continue to find ways to provide quality services at lower costs and that we will see additional savings as we move into next year.  The following comments apply to the Special District Tentative Budgets: Drainage District The Drainage District budget for 2008 is $572,000. In 2008 the proposed Drainage rate is $3.751 per unit or $37.50 per average household. This is an increase of $7.51 from  2007. These funds will be use to do major drainage projects scheduled for 2008. Water District The 2008 budget includes Debt Service for the East Penfield Water District Extension, the Thomas Cove Water District Extension, as well as debt service payments for the former Creek Street District. The 2008 proposed budget is $.026 per thousand or a charge for the average homeowner of $3.90 for those in the town-wide consolidated district. There is a decrease of $.31 from the 2007 rate. East Penfield Water District Extension residents will pay $.94 per thousand or a charge for the average homeowner of $141. This is a decrease of $9.00 per homeowner from the 2007 tax rate. The Thomas Cove Water District Extension will pay $1.99 per thousand or an average of $298 for 2007. This is an increase of $9.00 for the average homeowner from the 2007 rate. Lighting District The town-wide lighting district expenses for 2008 will be $.0658 per thousand. This is the same rate for 2007. The 2007 proposed budget for the intensified lighting district is $25.41. This is an increase of $1.19 per unit from the 2007 rate. Park District The one remaining Park District budget will go to $4,400 in the year 2007. This is the same rate as 2007. The proposed 2008 rate is $.135 per thousand and the average household in this district will pay $20.25. . Sewer District Expenditures are expected to be $2,092,391 up about $147,425. The Sewer Department operations and maintenance charges for residential homes will be $37.29. This is an increase of $.91 for the average home from the 2007 tax rate. District Debt Service for 2008 is projected to be $68.01 per average household versus a 2007 rate of $57.57. This increase is due to the financing of the 2005 Sewer projects scheduled for a principal and interest serial bond payment in 2006. Ambulance District The tentative budget for 2008 is lower than in 2007. The proposed rate per thousand is $.055 and will result in a charge of $8.25 per average homeowner versus 2007 rate of $.08 per thousand or $12.65 per average household. The 2008 proposed budget for District #2 (Northeast Quadrant) is .016 per thousand. The average home will pay $2.40 during 2008 verses a charge of $2.25 in 2007. Fire Districts Information on the three Fire Districts supporting Penfield is not included. The Town of Penfield does not have responsibility for the fire district budgets and each district is responsible through their elected Fire Commissioners. The dates for filing the Fire District Budgets have been changed so that they do not meet our deadline.