The Daily Star, Oneonta, NY - otsego county news, delaware county news, oneonta news, oneonta sports

Local News -

October 30, 2009

Tax increases likely minimal

Leaders in Otsego, Delaware, Chenango and Schoharie counties say they are working on 2010 budgets that will raise property taxes moderately, if at all.

The Delaware County Board of Supervisors on Wednesday received a tentative $93.4 million budget that would raise the tax levy just 1.43 percent.

After the board meeting, county board Chairman James Eisel said the county's department heads have done a good job paring down requests in a recessionary year.

``All things considered, it's a good budget,'' Eisel said.

Obstacles officials face include the rising costs of health insurance and contributions to the state retirement system, he said.

To keep taxes from rising sharply in January, the county will be spending some of its fund balance.

The county also has decided it cannot afford to grant

pay raises this year, he said.

Between now and Nov. 10, when the board meets again, county officials will work on the tentative budget to see if expenses can be reduced, Eisel said.

A public hearing on the budget is likely to be Nov. 24.

Chenango County's budget-in-progress would have called for a 4.9 percent tax increase earlier this week, but county officials hope to bring that number down to zero, Chenango County Board Chairman Richard Decker said Thursday.

``We know that people are hurting in this economy and we're going to do whatever we can to keep taxes down,'' he said.

However, with New York state in dire fiscal straits this year, it may call on counties to do more with less, compromising the county's best efforts, he said.

``The sad truth, though, is that we don't know what the state is going to do,'' Decker said.

Chenango County Treasurer William Evans said that efforts are being made to maximize federal and state programs to keep property taxes down. As federal stimulus money runs out next year, however, the county may face a tough 2011 budget unless the economy recovers, he said.

Alicia Terry, Schoharie County's Planning Department director, said Thursday the county has a tentative budget of about $72 million, which calls for a 5 percent tax increase.

The county board may adjust the budget, however, with an eye to reducing the tax levy, she said.

Otsego County, which historically has relied extensively on sales-tax revenue to fund its operation, faces a tough budget cycle this coming year.

For 2009, the county over-estimated sales tax by about 8 percent, a figure that will have to be lowered for 2010. At the same time, labor expenses are likely to rise as the county enters into a new contract with the CSEA. Similar to other counties, Otsego faces increased costs for health care and employees' retirement.

Otsego County's Administration Committee held a lengthy session Thursday, working on the county's 2010 tentative budget. County Board Chair James Powers has said the county will not sharply increase taxes for next year.

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