From The Desk Of Rick McCabe

I'd like to ask all residents to take a moment and review my summary of the 2012 Tentative Budget.

The 2012 Tentative Budget is in compliance with Chapter 97 of the NYS Laws of 2011 as interpreted in Publication 1000 (9-11) "The Property Tax Cap Guidelines for Implementation" issued jointly by the New York State Department of Taxation and Finance and the New York State Department of State. It is important to note that the Tax Levy Cap of 2 percent applies to the aggregate tax levy imposed by a municipality and not the individual Funds.

Specifically, the 2012 Tentative Budget calls for an aggregate tax levy (General Fund, Highway Fund, Sewer Funds and Water Funds) of $8,036,328, reflecting an increase of $83,713 or 1.05 percent. The 2012 Tentative Budget includes an increase in the Tax Levy for the General Fund; however, because we have been able to stabilize operations in the Water and Sewer Funds, we are able to reduce their Tax Levies by 2.0%.

The Tax Levies by Fund compared to 2011 are as follows:

The 2012 Tentative Budget contains a 3% salary increase for DPW workers, Police Officers and Dispatchers, per previously negotiated contracts. There are also significant increases in employee benefits, including one-time payments to the NYS Employee Retirement System to fund the Town's participation in the 2010 Retirement Incentive. The 2012 Tentative Budget also increases General and Highway Fund allocations to reduce the inter-fund debt to $275,000 and reflects the reduction of $984,000 in external debt.

It is important to note that the 2012 Tentative Budget continues the practice of using conservative revenue projections which should be attainable, even in today's economy. This approach reflects the position that it is more practical to project achievable levels rather than be overly optimistic and negatively impact the Town's financial situation should the revenues not be realized. This practical approach is again taken with the commitment that excess revenues will be used to reduce deficits, retire debt, reduce inter-fund loans or build reserves, depending upon which fund(s) experience excess revenues.

Fiscal responsibility is a primary goal of this administration. Tax increases are a last resort and we understand and appreciate the impact they have on our residents, especially in the current economic climate. However, tax increases are necessary to close the negative Fund Balance while restoring our credibility with the rating agencies and private lenders. We continue to look for opportunities for growth and are working hard for East Greenbush.


Rick McCabe