http://hudsonvalleyreporter.com/dutchess/2013/11/fishkill-officials-hope-to-eliminate-debt-by-2016/
FISHKILL, N.Y. – In an effort to deal with its ongoing fiscal struggles, the town of Fishkill has put together a deficit-reduction plan that sets spending and budgeting goals for the next three years and aims to eliminate its debt by 2016.
The town had incurred a budget deficit of $4.8 million by the end of 2011, $3.2 million of which still remains.
The town hopes to reduce the general fund deficit by $100,000 in 2014. The fund that covers the town outside the village is targeted to be slashed by $400,000, and the highway fund for the town outside the village will be reduced by $1.15 million in 2015. Town officials also want to delay major capital expenditures until 2015.
Part of the plan has town officials counting on real property tax revenue increasing. The 2014 tentative budget factors in $1.66 million in revenue from property taxes and projects $1.81 million by 2017. The plan also projects expenditures will drop between now and 2017. The town is budgeted to spend about $4.1 million in 2014. By 2016, expenditures are expected to be down to $3.9 million and in 2017 drop even further to $3.8 million.
“The Town Board acknowledges that prior budgetary practices, interfund borrowings, and the application of donated funds to cover operating expenses has significantly affected the town’s financial stability,” said Supervisor Bob LaColla. “Due to these practices, the town incurred an overall deficit of $4.8 million across its four general funds through year end 2011. The Town Board has made elimination of the deficit in all the major funds a priority.”
In the 2013 budget, the town was forced to override the 2 percent tax cap by raising taxes 53 percent. This year, residents in the town outside the village are seeing about a 15.4 percent increase with tax rates rising from $2.40 to $2.77 per $1,000 of assessed property value. Village residents in the town would see a tax hike of about 12.8 percent, going from 80.6 cents to 90.9 cents per $1,000 of assessed property value.
Additionally, homeowners in the Rombout Sewer District would see a raise in their rates from $44.28 to $53.14. Three water districts would see increases as well. Those in the Snook Road district would have their rates raised from $40 to $44 per quarter; Fishkill Glenn would increase to $27.40 per quarter from $15.40, while fees in Watch Hill would increase from $5.50 per quarter to $13.70.
LaColla said that increases are for districts that have not had rates go up in a long time or ever. In August, the rates of the Dutchess Park Sewer district were raised from $41.40 to $97.20 (135 percent) to help reduce some of the deficit.
“We were told by Moody’s that formal adoption of a deficit reduction plan would go a long way to secure financial markets,” LaColla said. “By formally adopting the plan, it will clear the path for future town boards.”
Even though 2016 is the target year to be back in the black, LaColla said it wouldn’t officially be out of debt until an audit is done and that might take until 2017.
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