When the annual spending plan is adopted next month, Fayetteville taxpayers will not see an increased tax rate despite some very unfavorable economic conditions.
Village Mayor Mark Olson, who presented the proposed budget at a recent Board of Trustees meeting, acknowledged the cooperative effort from every village department to keep the tax rate at $6.70 per $1,000 of assessed value for the fiscal year June 1-May 31.
"We have had a stable tax rate for the past 10 years," Olson said.
Village officials are constantly striving to be as efficient as possible at every level of village government, Olson added. In fact, for the past 15 months, the village board has been required to authorize departmental expenditures of more than $1,000.
All department heads, he said, were instructed to continue spending constraints through the end of the fiscal year.
Under the 2010-2011 proposed budget, these practices will result in approximately $240,000 in spending savings, or 6 percent from the current $5 million budget.
In addition, the village is receiving nearly 5 percent less in state aid, a decrease of nearly $2 million in total value of assessed property values, and a 31 percent decrease in sales tax revenue. Currently, Fayetteville receives approximately $886,000--or 18 percent of the total budget-- in county sales tax revenue.
The sales tax revenue is projected to decrease nearly $140,000 from the current year. Fayetteville and other villages throughout Onondaga County rely on sales tax revenue to help maintain village services.
Olson and other village mayors addressed a county legislative committee Monday morning on how a reduction of county sales tax revenue will adversely affect villages.
Dick Donovan of Minoa, Mark-Paul Serafin of Manlius and Danny Liedka of East Syracuse also attended the meeting at the county courthouse.
"It is important for village residents to see the tax money go to the betterment of the community," Olson said in his presentation to county lawmakers. The reduction of sales tax revenue, he stressed, will have a major tax implication for the village.