Taxes headed down under proposed 2019 budget
BALLSTON SPA, N.Y. >> Property owners should see a slight reduction in their tax bills next year, under a tentative $314.7 million budget Saratoga County officials unveiled Wednesday for 2019.
County Administrator Spencer Hellwig attributed a three cents-per-$1,000 tax rate drop to a $1.3 billion countywide gain in assessed value, driven by continued strong residential and commercial construction in Saratoga Springs, Malta, Halfmoon and Clifton Park.
This comes on the heels of a $786 million rise in real property value from 2016 to 2017, or more than $2 billion over the past two years combined.
“There’s just been staggering growth, which is a good thing,” Hellwig said. “Saratoga County is an exceptional place to do business. A lot of these businesses place a high priority on the quality of life.”
General fund spending is down 2 percent, or roughly $5 million, while sales tax, the county’s largest revenue stream, is up 4 percent to $124.2 million.
This is primarily the result of higher gasoline prices. As the price of fuel goes up, sales tax rises, also.
But there’s also been strong consumer demand for big-ticket items such as automobiles, and area hotel rooms are quite often booked to capacity, Hellwig said.
Property tax, the second largest source of county income, totals $60.6 million. However, officials said this is totally eaten up by more than $63 million in unfunded state mandates such as Medicaid ($25 million), pensions ($9.8 million), Social Ser-
vices programs ($8.8 million) and community college expenses ($8.5 million).
“Albany does not give us the ability within the confines of the (2 percent property) tax cap to offset these mandates,” Hellwig said. “We don’t have any control over these expenses. We just get the bill.”
Officials plan to use $2 million worth of surplus funds to balance the 2019 spending plan. The county’s fund balance totals $41 million.
The budget includes a 2 percent raise for all union and non-union employees, including elected officials. There are no plans for new hiring, but this could change as officials consider filling vacant jobs or adding new ones.
“There are always requests for added personnel,” said Supervisor Kevin Tollisen, R-Halfmoon, the Law and Finance Committee chairman.
A committee budget hearing is scheduled for 4:45 p.m. on Wednesday, Nov. 14, followed by a budget workshop for supervisors on Nov. 19. A public hearing, with tentative amendments, is set for 4:30 p.m. on Wednesday, Dec. 5.
The full Board of Supervisors is expected to adopt the budget on Wednesday, Dec. 12.
Tollisen is in line to become board chairman in 2019, succeeding Stillwater Supervisor Ed Kinowski, who has held the job for two years.
“We need to decrease expenses first and look to increase revenues,” Tollisen said. “We must never forget how quickly the financial tide can turn.”
Plans call for designating 2018 as “Year of the Senior,” with special events planned that pay tribute to the county’s 80,000 residents ages 55 and older. Seniors comprise more than one-third of the county’s total population, numbering 219 people.
There are no major new capital projects planned although roughly $6.8 million is allocated for highway and bridge reconstruction.
Most of the county’s attention in 2019 will be focused on the $30 million new Paul Lent Public Safety Building, scheduled for completion in early 2020. The 63,000-square-foot facility will bring the sheriff’s, emergency services, probation, and public health offices together under one roof, in addition to the 911 dispatch center.
The 2018 budget included $15 million for the project.
This expense isn’t part of the 2019 budget, one of the main reasons for a reduction in General Fund spending.
Kinowski outlined several other major initiatives the county undertook this year.
This included a financial software upgrade, a new school resource officer program (11 deputies in nine school districts), and partnership with Albany County on a $50 million biosolids facility, which will handle waste from both counties’ sewer districts.
In addition, the Public Works Department rehabilitated more than 20 miles of county roads and replaced two bridges.