December 4, 2009

 

Milan taxes to rise 17% in 2010 budget

 

Rasheed Oluwa

Poughkeepsie Journal

 

MILAN — Residents will see more than a 17 percent increase in town tax bills next year in the 2010 budget.

 

The Town Board approved a budget of $1,853,382 by a margin of 3 to 2 last month. That figure represents a nearly 15 percent increase from this year's spending plan. The tax levy, or the amount to be raised through property taxes, will increase a little more than 16 percent to $905,350.

 

The estimated tax rate is $1.96 per $1,000 of assessed property value, or $588.90 for a home valued at $300,000. That is a 17 percent increase from this year's tax rate.

 

”That is just outrageous,“ said Ross Williams, who voted against the budget, along with fellow Democratic Councilwoman Diane May.

 

Williams said the current budget does reflect some changes in the accounting practices that were made this year. For example, the gross amount for fines and forfeitures is included this year instead of the net amount, or the amount less the percentage that is allocated to the state. That means a smaller line item for fines and forfeitures next year.

 

A big portion of the increase comes from the highway fund, which will increase nearly 17 percent to $890,591, Williams said.

 

Williams said he also had a problem with the board's decision to use $30,000 from this year's budget to make a payment due to the state retirement system in 2010. Nearly $47,000 was included in the 2010 budget to pay off the amount due to the retirement fund in 2011.

 

Williams accused the Republican-controlled Town Board of padding the budget.
”I think it's unconscionable to do that in these economic times,“ Williams said.

 

 

Supervisor backed it

 

Richard Barrett, the Milan town supervisor, voted for the budget with council members Bobbi Egan and David Byrne.
Barrett said the reason the highway fund received a huge increase in 2010 is because it was decreased during the course of the past several years.

 

Barrett said he doesn't believe it's feasible to pay five years' worth of road repairs with a 10-year bond, as Williams has suggested.

 

”You're still charging the taxpayer,“ Barrett said. ”But instead of putting the money back in the road, you're paying the bank the interest.“

 

Barrett said the reason behind paying the state retirement system early is the town will receive a small discount of about $500 if the bill is paid in December instead of February, the month the payment is due.

 

He said the board could always transfer the money from the state retirement line if any sort of emergency or legal problem emerged.