I was reading through the recently completed independent audit of City finances and the numbers are an encouragement considering the nation's economic malaise.
The strong sales tax numbers are combined with expenses coming in under budget by well over a million dollars.
The result is an expanding fund balance which in the general fund now exceeds $13million (that includes $1.9 M in health insurance reserves and $126K in risk retention funds)
While the temptation might be to start spending, the move should be in the direction of tax relief. While the property tax levy represents less than a fourth of general fund expenditures, it is the only revenue stream we control.
Sales tax is determined by contract and state aid is determined by Albany.
While prudence dictates some reserves for emergencies and proper cash flow, it is clear the robust sales tax has resulted in an overtaxing vis-a-vis expenses..
It's not a sinister thing, but the result of good budgeting and cost containment.
Nonetheless, there is ample evidence of where revenue streams will be, even in challenging times. We have to be willing to let some money go back home.
A portion of the fund balance must be used for significant property tax levy relief this cycle. Reducing the balance by say $1.8 million would drop the current property tax levy by 20%. That would be a positive boost to the local economy and a rightful repatriation of funds to the people who own them.
Now is the time to start this dialogue at the city, county, town and village level.
Every set of finances is different as not all entities are funded in the same way, but I suspect the city and county are not the only ones seeing fund balance increases.
15 comments:
It will never happen. Government never gives back to the people it confiscates money from.
You make a great point and one that I certainly agree with. If there is room enough in the till to have an adequate cushion for the city and still return some money to the people, I say go for it. We all know that if Cuomo fails to institute his property tax cap before school budget time, the overpaid supers are going to be digging very deeply into our pockets. Of course this will be for the children and not the overpriced salaries and benefits.
Bobby Ferris would be proud.
It would be nice to see some type of split on levy buy down and the ALWAYS NEEDED infrastructure work.
'Property Tax Relief,' is such a smart way to go Mayor and I also advocate for it. I've already told you I'd work on your behalf in anycase. Did you see the article on Waffer Chip design in WDT? The State investment in attracting and researching Chip manufacturing has started a whole resurgence in Albany, NY and created 1000's of jobs. In this case the Gov. and NYS helped create those jobs and it's an approach we ought to try here.
MCM
Although this makes sense on the surface...it also comes right after the whistle was blown regarding the mishandling of tax payer monies.
The mayor should step down for not coming forward with this information at a time when the citizens of this community were being unfairly burdened by over taxation...where is the leadership? It's too easy to tax in this country, too easy to place blame, and too easy to avoid accountability...fire these people...every one of them...and let's put common sense back at the helm....not politicians.
It's not really the only revenue stream you control. You negotiated how much extra the city gets of the sales tax, so you control that in a way.
It would be pertinent to consider the fund balance as a percentage of total yearly expenses.
It sounds like the high sales tax revenue is an anomaly of late. What is the standard deviation, or how does it compare to the lowest sales tax revenue in the last 10 years?
Watertown has a long history of neglecting things they should spend money on or passing the costs on to the citizens like with sidewalks. Is there not a pressing street that needs repair?
I think it would be a good idea to keep property taxes as stable as possible and not give too much of a refund unless you can be reasonably sure it won't jump back up within a few years.
Wait a second...did a politician just propose giving money back to the taxpayers? Hell has frozen over folks.
Serious note, your proposal seems reasonable and I hope you follow through with it.
Do what the county does. Keep it, spend it, pretend you don't have it, and stay with leadership that thinks its ok.
13 million dollars... things we need in Watertown, NY. In no particular order.
-Another sidewalk (more walking space) in public square. There is too much parking!
-Another road 'island' like the one in front of Great American. So helpful in the wintertime for the plows to get thru.
-MORE SALT!! My vehicles will love you for it!
-More taxes!! Everybody loves to live in Watertown!
Mr Graham,
If you have not noticed by now, what you need is different kind of industry. When the DoD decides to leave Fort Drum, Watertown is going to be a Ghosttown. Other than the post, there is only one industry here, agriculture... If you looked around our growing season isn't all that great and too unpredictable. I really think you need look to invest a little time into thinking about the future of Watertown without Fort Drum. The war's not going to last forever so whatever winfall you think we have, really isn't there...Invest wisely. Bring Real Businesses to Watertown... We don't need another hotel or resteraunt. We need a something that small town's can depend on; People that want to stay. We need industry that families can grow on.
FIX THE STREETS
To worried small business owner. Government does not invest it spends! Businesses do not come to an area because of government but usually because of a lack of government. That is why the south is growing and New York is withering on the vine. Lowering taxes and giving money back to the people who earn it is the only way to ever have a prayer of growing the local economy. Even then it may be a bridge to far simply because New York is second only to California in no growth, anti-business tax policies. Sad but true, Watertown has had a reasonably responsible government over the last 6 years that I have lived here, but New York State destroys any good the city does!!!
Mr. Graham, So there is the disconnect. The gov't should invest.
Invest real time in this town's future WITHOUT Fort Drum. When the 20,000 soldiers leave along with their support (almost 40,000 people if not more), who is going to be here to 'spend' their money on your sales taxes?
What ideas do you have so small businesses don't go under when those people leave? Have you considered why JCC enrollments have been so high? Perhaps you should check that out. Your small business might not have any issues right now. But where are you going to be at when there are no soldiers to fill your seats?
The three industries we have right now is Construction jobs, Medical field positions (that we can't keep filled) and Retail.
Mr. Graham, remember the little guy who said the sky was falling? Well, it is, perhaps its time look up. I've been apart of military town that just fell off the map when the DoD decided to leave... Look up Millington, TN about the time when the Navel Training Station decided to leave... What happened to Millington's overall economy?
I don't claim to have the answers, just a little forsight.
You see how presidents failed when they tried to give checks back to the people. The people didn't jumpstart the economy like the politicians said they would. The people kept the money, or paid debts and bills, which did NOT help the American economy.
What can you do to keep young professionals here in your town?
Food for thought; Cities in Alaska are still growing, without 'clean road' policies. People adepted to driving conditions and people have lived for generations and don't want to leave... I wonder why that is? Don't blame the state... That's too easy...
Worried small business owner: First, I'm not Mr. Graham, just a guy named Graham. Second thank you for proving my point. Towns in Alaska are growing. Alaska has no income tax, no sales tax and very little State government involvement in the functioning of cities in the state. Unlike New York it's policies are very pro-growth and pro-business. Therefore you have real, private sector growth. As for Presidents giving out checks. Actually it did work. The economy grew during most of the Bush years. The problem was Bush started as a conservative for about a year ot two and then reverted to the same big government liberalism that Washington thrives on. Another point. If people chose to use their money to pay off debt or put it on the bank to save isn't that a good thing because it is them decideding what to do with their money? Lastly, opening Fort Drum was a largely political decision to save northern New York back in the 80's. It has now survived and even grown through 4 separate BRAC commisions and isn;t going anywhere even when the war ends. However, in the event it would shut down, more government interference would only hurt the area instead of helping it. If the current situation in Washington is not enough to teach everybody that larger more intrusive government is not the answer, then those people just don't want to learn!!!
What "current situation" in Washington? The Department of Defense really doesn't care about upper state New York. When they leave, whether or not at the end of the war, Jefferson county is going to suffer.
Questions that need answers.
Who 'lives' in Watertown's newest hotels?
Who is keeping our small and corperate businesses above water?
In my business, 50~75% of my clientelle is connected, in one way or another, to Fort Drum. Whether its soldiers who walk thru my doors or its the people screening them for TBI. My business, unfortunetly relies on the post.
In residential property, who's the one's that are buying and renting most homes and apartments?
I can see a real change in my cash flow when Brigades deploy and re-deploy in and out ot the area. Not only are soldiers taking their money overseas but spouses often move home (south) to escape the harshness of the winters here.
What can you do to keep them here? What are the incentives to keep them here?
Next subject, have you noticed the new parking garage @ SMC? How could the medical center afford such an undertaking? Could it have something to do with the amount of money that soldiers bring to SMC via Tri-Care? What happens when that pot of money runs dry?
My point is, 13 million should be used to invest in this town's future? Instead giving large corperations to the 'go-ahead' to keep biulding crap we don't need on that far end of Arsenal, let's give small businesses that don't bring $500,000 a year a chance to grow. It's the small businesses that are going to keep this town alive and on the map when the sky falls.
4 'seperate' BRAC Commissions, huh? Shouldn't that tell you that Fort Drum has been on the chopping block on 4 seperate occasions? In other words, Jefferson county's money pot is, and has been, in the spot light. When, not if, but when Washington decides it costs more to keep the post open that it can afford... well, let's just say that living off the lake isn't easy and gov't payouts for slips, trips, and falls, aren't cheap.
Lastly, Bush gave tax money back to country. Bush starts a war(s). Country heads into recession... Naw, can't be THAT easy... Just blame Obama. That's easier, right? Who is the largest contractor in our war's? Who has a hand in Kellog, Brown and Root? (not Cheney *wink*) How much does a non-American KBR worker earn while serving food to our soldiers in Afghanistan? An American? What's the average income of an American soldier? But let's blame Obama, that the easy way out. Bush was a saint. But seriously, Cheney's being charged with bribery, Bush can't be far behind.
Yawn...the recession started with Clinton, Enron, Sprint, Global Crossings, irrational exuberance. Dot-com bubbles.
Bush staved it off with tax cuts for 7 years. But Clinton's deregulation was too much to bear when the inevitable results were oil, gas and energy prices skyrocketing. Combine that with Fannie-Frank and the lax mortgage origination/housing appraisal rules advocated and sanctioned by the government and we got where we are today.
Check that hotel registry again for Canadians. And check our government revenues for sales tax contributions. This county was here before Drum and it will be here after Drum.
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