The town council last night had the task of approving the town budget for 2009. I have stated in my campaign that I would do what I could to see the budget decreased and taxes lowered and this being my first budget process was no different. I feel we have done a fairly good job of reducing spending, or at least I have voted against spending on items I felt were not neccesary. I will say that most of the time they passed anyway with 4 other votes out there and only needing 3 of 5 to pass.
I felt with this budget that we had some carry over of money in some of the funds and that a 4% increase was not needed. The town financial advisor continues to maintain the stance that we need to ask for the maximum each year since the way the state has set up town finance.
The way it works is if you ask for 4mill in 2008 then the next year you can get an increase of x% (decided on by the state) but if you decline an increase and ask for 4 mill again or even less in 2009 then the next year (2010) you can only get the state maximum increase over the 2009 budget, say 4%. It can not go up 8% with a claim that you did not take the 4% in 2009.
I say we can get by with the same next year as this with out an increase and IF we need more in 2010 then we take the 4%, or what ever the level may be, and live with it.
At some point we have to stop the increases.
The financial advisor pointed out that 200k of the 2009 budget is from LOIT (local option income tax) but that is still a tax on the citizens.
Long story to the end, I voted nay on the 2009 budget but it passed anyway. That does not mean we have to spend it all, which I will continue to work on. I felt that if we make a good effort up front it will make the year easier to deal with.
What I have learned, and what most advisors won't tell you unless asked, is that if a major issue comes before a town, say is doubles in size in one year, the town can petition the state for an increase over the maximum once it demonstrates the reason why. So for now I felt we are in good shape and IF we double in size then we can ask for a larger increase WHEN that happens.
Thank you
Joe