Village budget, taxes increasing

| 28 Sep 2011 | 02:48

    WARWICK-The Village's general fund tax rate will increase 10 percent this year if the Board of Trustees approves its 2005-06 proposed budget of $4.14 million. Residents will pay $25.80 per $1,000 of assessed value, up from last year's figure of $23.03. A home valued at $200,000 is assessed at 25 percent of that or $50,000. That homeowner's share of taxes would be $1,290, up $138 from last year. The general fund is the largest part of the village's budget. The other two components cover the sewer fund and the water fund. The 2005-06 sewer fund land tax will increase to $18.53 per $1,000 of assessed land value, more than double that of last year's $8.86. The water fund land rate is dropping to $9.06, down 79 cents from last year. A home on 20,000 square feet of land assessed at $11,500 would be taxed $213.10 in sewer tax, up from $101.89 last year. The same homeowner will now be paying a water fund tax of $104.20, down from $113.28. The sewer fund goes only toward sewer projects; water fund is spent only on water district projects. Water usage rates are increasing six percent for village residents. Out of village water users will feel a dramatic increase, according to Mayor Michael Newhard. "This increase is to approximate the cost of the land tax to out-of-village consumers," he said in a two-page letter explaining this year's budget. The water department is purchasing a new PH meter and chlorine analyzer, as well as rebuilding the pump in one well. The land tax is only used for debt reduction, according to Newhard. The water land tax decreased this year thanks to the $1 million grant from the state Comptroller's Oil Spill Fund. "The water debt was cut in half by the state monies," Newhard said. "Ironically we don't see a large decrease due to the extended payment of the bond anticipation notes." The sewer fund deficit has expanded over the last two years, Newhard stated, and is now $3.3 million. There have been no increases in usage rates for nearly a decade until now. This budget increases the sewer rate 30 cents per thousand gallons of usage. The village is buying a new generator and is expecting expenditures to resolve recurring problems on Park Lane. Newhard said this was a difficult budget to devise. The budget is available for the public, along with his two-page letter explaining the components of this year's budget. The general fund includes most of the expenditures in the village, including Department of Public Works employees and the office staff. Contracted services, such as police services, accounting, engineering and the village attorney, are also in this fund. The police budget totals $1.655 million this year, or 40 percent of the general fund. The public will have its say on the budget on Monday, May 16, at the public hearing.