Facing a major budget gap this year due to down sales tax revenues and increases in next year’s operating and program costs, county officials over the past several months have been bracing taxpayers for grim news.
But by utilizing federal stimulus funds, eliminating 14 vacant positions and tapping into its general fund, the Herkimer County Legislature on Wednesday presented a 2010 tentative budget that actually decreases the equalized tax rate.
The $92,151,298 budget, a .38 percent increase over 2009, drops the overall equalized tax rate to 4.94 per $1,000 of assessed value, compared to the current 4.97, according to Finance Committee Chair Patrick Russell (R-District 15).
A house assessed at $100,000 would pay $494 in 2010, instead of the $497 in 2010, with the actual tax rate varying by town.
An assumed $1.7 million in federal stimulus funds loomed as the main factor that enabled county officials to offset budget gaps and cost increases.
The county is using it to offset a list of problems.
Russell presented two main unanticipated decreases at the top. Sales tax figures are anticipated to finish $800,000 below projections this year, and interest revenues are down over $300,000.
The presentation highlighted program and operating cost increases that totaled over $1.17 million. Russell mentioned everything from an additional $50,000 contribution to Herkimer County Community College to county retirement costs jumping over $400,000.
Budget shuffling used to hold down the tax rate also included spending $182,000 of the county’s general fund, which would remain at roughly $600,000, according to Russell.
Herkimer, N.Y. —
