Tough choices ahead

Warwick Town officials preparing 2012 budget Warwick — Ten residents attended the preliminary 2012 budget hearings held on Nov. 10 at Warwick Town Hall. Current levels of town operations and special districts are projected to cost taxpayers $22.2 million but the town must raise more than $13.6 million to keep current levels of service. Driving the 2012 austerity budget are legacy costs or health and retirement benefits for former employees. Town of Warwick Supervisor Michael Sweeton must complete the town’s 2012 budget by Nov. 20. Here’s a rundown of where things stand: Revenue For 2012 estimated revenues are little more than $8 million excluding the $4.2 million interfund transfer to police. The town is projected to generate $6.5 million in revenue and special districts another $1.4 million. The supervisor also announced that mortgage tax revenues are down nearly $100,000. For 2011 the town budgeted $800,000 in mortgage taxes and $710,000 for 2012. In 2010 the town raised $725,397 from the revenue source. Estimated 2012 revenue from real property taxes is $13.6 million. Year-to-date that number is $12.4 million and in 2010 the town and special districts generated $11.5 million from real property taxes. Reserves With town and special district reserves at $566,750, Warwick has nearly depleted its financial cushion, which has been softening the impact on taxpayers of legacy costs. Expenses Although some expenses are trending in the wrong direction, the salaries of elected officials are frozen once again and beginning in January, all elected and appointed officials will contribute 10 percent toward the cost of their health coverage provided by the town. Of the $13.6 million needed to maintain current service levels, $9.2 million or 68 percent comes from the town’s general, highway and police operations and $4.4 million or 32 percent from special districts. Warwick’s four volunteer fire districts and three ambulance districts account for $3.1 million or 71 percent of the amount of money needed among all special districts to keep current levels of service. Town police are projecting a cost increase of $1.1 million or 8 percent of the total preliminary budget deficit. The highway department needs $3.2 million and Town Hall $4.9 million, which together account for 59 percent of the preliminary budget shortfall. Town spending summary Among all funds, the supervisor is projecting appropriations totaling $16.2 million for 2012. Overall $16.2 million represents a 5 percent increase over 2011 spending levels and a 5.7% increase compared to 2007 spending, which totaled $15.3 million. Although payroll has increased only 3.6 percent since 2007, fringe costs have increased more than 37 percent since then. In 2007 fringe benefits were valued at 59 percent of payroll, a number that increased to 67 percent for 2011 and is projected to reach 78 percent by 2012. Together, payroll and fringe benefits account currently for 74 percent of town spending. Warwick has little debt to service, and that amount has declined by nearly half since 2007 when the town spent $575,155 paying down its debt. For 2012 debt service is estimated at $290,382. Police spending Police spending is projected to reach $6.5 million, an increase of 9 percent over 2011 including a $4.2 interfund transfer from the town. Payroll is projected to increase to $3.3 million, an increase of 3 percent over 2011; however, payroll has increased less than 5 percent since 2007. Fringe benefits are projected to reach $2.4 million, an increase of 14 percent over 2011 and 41 percent since 2007. In 2007 fringe benefits were valued at 53 percent of police payroll, a number that is projected to increase to 71 percent in 2012. Together, payroll and fringe benefits account for 90 percent of current police spending. Spending on equipment, although down by more than 8 percent compared to 2007, is increasing 76 percent compared to 2011 and accounts primarily for replacing police vehicles. In 2010 police spent $2,250 on equipment and in 2011 have spent $54,090. Other police expenses have increased more than 32 percent since 2007 and are increasing 11 percent over 2011 levels. Highway spending Highway spending is projected to reach $3.9 million, a decrease of 1 percent over 2011. Payroll is projected to increase to $1.4 million, a decrease of 12 percent over 2011. Since 2007 payroll has increased by 4 percent. Fringe benefits are projected to reach $1.2 million, an increase of 15 percent over 2011 and 21 percent since 2007. In 2007 fringe benefits were valued at 73 percent of highway payroll, a number that is projected to increase to 85 percent in 2012. Together, payroll and fringe benefits account for 68 percent of current highway spending. Spending on equipment and other expenses, although down by more than 27 percent since 2007, is projected to reach $1.2 million, an increase of 2 percent over 2011. In 2010 police spent $2,250 on equipment and in 2011 have spent $54,090. Other police expenses have increased more than 32 percent since 2007 and are increasing 11 percent over 2011 levels. Consolidation “The amount of taxes you levy can’t rise by more than 2 percent unless by a 60 percent margin voters override the cap,” said the supervisor in a telephone interview. Whereas for towns that means 60 percent of board members, for school districts 60 percent of residents must vote to override the cap something Sweeton and others at the hearing doubted school districts will achieve in this economic climate. Sweeton agrees with the governor that schools ought to consolidate - perhaps run schools at the county level - but called the cap and ensuing process gut wrenching. Pine Island is not a village yet has a business center, chamber of commerce and fire and ambulance district, said the supervisor about the hamlet that uses Town Hall to deal with issues as the need arises. “Villages are okay as long as people in villages can afford to have them,” he said about new opportunities to consolidate services further in Warwick. Although villagers would have to vote to dissolve themselves as a taxing unit in order to consolidate services like tax assessment rolls, it is simpler for services like DPW.