By Michael Ryan
WINDHAM - It turned out to be a lot of rigamarole, albeit fiscally wise fussing, when Windham officials approved a 2024 budget.
Town council members, at a recent meeting, passed next year’s spending plan showing $2,952,328 needing to be raised by taxes.
That bottom line is roughly $138,000 higher than a year ago but is still under the State mandated 2 percent tax cap.
As a pecuniary precaution, prior to passing the budget, local officials had done what was legally necessary to exceed the limit.
“We’re going to be safe but just to be on the safe side, we will enact a law allowing us to potentially exceed the cap,” town supervisor Thomas Hoyt said at the time, turning out to be correct.
The tax cap sets a limit on the annual growth of property taxes levied by local governments and school districts to two percent, or the rate of inflation, whichever is less, the State Comptrollers’ website states.
Put into effect in 2012, the cap applies to all independent school districts and all local governments outside of New York City, and is intended to capture the broad range of property taxes levied in New York.
The tax levy cannot exceed the cap unless 60 percent of voters (for school districts) or 60 percent of the total voting power of the governing body (for local governments) approve such increase, the website states
Local governments may override the tax levy limit only by first passing a local law (or a resolution in the case of a fire or other special district) that allows for the tax levy limit to be exceeded.
In the event that a local government or school district levies more than the amount allowable under the tax levy limit due to a “clerical or technical error,” the local government or school district must place the excess amount in a reserve.
These funds, and any interest earned, must be used to offset the tax levy in the following fiscal year.
If upon post audit, the State Comptroller finds that a local government levied taxes in excess of the allowable limit, the local government must place an amount equal to the excess in the reserve.
“The property tax cap has an extraordinary record of restraining tax hikes without unduly straining education budgets or tying the hands of local officials,” the State Comptroller’s website states.
Windham leaders had to hold a public hearing before saying “okay” to the required legislation which wound up being much adieu about nothing.
On the other hand, it can get financially complicated if a municipality doesn’t stick to the rule so Windham chose better safe than sorry.
Breaking down the 2024 numbers, they go as follows:
—General Fund (Appropriations and Provisions $1,698,798 minus Estimated Revenues $145,400 and minus unexpended balance $217,016 equals $1,336,381 to be raised by taxes.)
—Highway (Appropriations and Provisions $975,249 minus Estimated Revenues $183,116 and minus Unexpended Balance $25,000 equals $767,133 to be raised by taxes).
—Public Library (Appropriations and Provisions $126,222 minus Estimated Revenues $5,500 and minus Unexpended Balance $20,000 equals $100,722 to be raised by taxes).
A comparison with 2023 shows the amounts to be raised by taxes as follows: General Fund ($1,272,405), Highway ($733,917) and the Public Library ($102,129).
Back in 2022, the tax figures were General Fund ($1,521,569), Highway ($744,016) and Public Library ($114,580).
The unusual tumble from 2022 to 2023 reflected a dogged effort by town officials to offset and set a steady course for what is going to be two decades of debt payment for the new ambulance building.
For those fascinated by budget figures, the projected costs for Street-lighting are set for Windham ($10,500), the hamlet of Hensonville ($4,500 ) and the hamlet of Maplecrest ($1,700).
Regular expenses for maintaining the paramedic-manned ambulance district are Appropriations ($802,900) minus Estimated Revenues ($275,000), leaving a total of $527,900 to be raised by taxes.
The budgeted cost of maintaining sidewalks in the downtown district of Windham, $8,000, is balanced by the same amount in Estimated Revenues from sidewalk district residents, leaving nothing to be raised by taxes.
So when all is said and done (including water and sewer etc.) the gross Appropriations and Provisions are $4,872,821, minus $1,658,476 in Estimated Revenues, minus $262,016 in Unexpended Balance.
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WINDHAM - It turned out to be a lot of rigamarole, albeit fiscally wise fussing, when Windham officials approved a 2024 budget.
Town council members, at a recent meeting, passed next year’s spending plan showing $2,952,328 needing to be raised by taxes.
That bottom line is roughly $138,000 higher than a year ago but is still under the State mandated 2 percent tax cap.
As a pecuniary precaution, prior to passing the budget, local officials had done what was legally necessary to exceed the limit.
“We’re going to be safe but just to be on the safe side, we will enact a law allowing us to potentially exceed the cap,” town supervisor Thomas Hoyt said at the time, turning out to be correct.
The tax cap sets a limit on the annual growth of property taxes levied by local governments and school districts to two percent, or the rate of inflation, whichever is less, the State Comptrollers’ website states.
Put into effect in 2012, the cap applies to all independent school districts and all local governments outside of New York City, and is intended to capture the broad range of property taxes levied in New York.
The tax levy cannot exceed the cap unless 60 percent of voters (for school districts) or 60 percent of the total voting power of the governing body (for local governments) approve such increase, the website states
Local governments may override the tax levy limit only by first passing a local law (or a resolution in the case of a fire or other special district) that allows for the tax levy limit to be exceeded.
In the event that a local government or school district levies more than the amount allowable under the tax levy limit due to a “clerical or technical error,” the local government or school district must place the excess amount in a reserve.
These funds, and any interest earned, must be used to offset the tax levy in the following fiscal year.
If upon post audit, the State Comptroller finds that a local government levied taxes in excess of the allowable limit, the local government must place an amount equal to the excess in the reserve.
“The property tax cap has an extraordinary record of restraining tax hikes without unduly straining education budgets or tying the hands of local officials,” the State Comptroller’s website states.
Windham leaders had to hold a public hearing before saying “okay” to the required legislation which wound up being much adieu about nothing.
On the other hand, it can get financially complicated if a municipality doesn’t stick to the rule so Windham chose better safe than sorry.
Breaking down the 2024 numbers, they go as follows:
—General Fund (Appropriations and Provisions $1,698,798 minus Estimated Revenues $145,400 and minus unexpended balance $217,016 equals $1,336,381 to be raised by taxes.)
—Highway (Appropriations and Provisions $975,249 minus Estimated Revenues $183,116 and minus Unexpended Balance $25,000 equals $767,133 to be raised by taxes).
—Public Library (Appropriations and Provisions $126,222 minus Estimated Revenues $5,500 and minus Unexpended Balance $20,000 equals $100,722 to be raised by taxes).
A comparison with 2023 shows the amounts to be raised by taxes as follows: General Fund ($1,272,405), Highway ($733,917) and the Public Library ($102,129).
Back in 2022, the tax figures were General Fund ($1,521,569), Highway ($744,016) and Public Library ($114,580).
The unusual tumble from 2022 to 2023 reflected a dogged effort by town officials to offset and set a steady course for what is going to be two decades of debt payment for the new ambulance building.
For those fascinated by budget figures, the projected costs for Street-lighting are set for Windham ($10,500), the hamlet of Hensonville ($4,500 ) and the hamlet of Maplecrest ($1,700).
Regular expenses for maintaining the paramedic-manned ambulance district are Appropriations ($802,900) minus Estimated Revenues ($275,000), leaving a total of $527,900 to be raised by taxes.
The budgeted cost of maintaining sidewalks in the downtown district of Windham, $8,000, is balanced by the same amount in Estimated Revenues from sidewalk district residents, leaving nothing to be raised by taxes.
So when all is said and done (including water and sewer etc.) the gross Appropriations and Provisions are $4,872,821, minus $1,658,476 in Estimated Revenues, minus $262,016 in Unexpended Balance.
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