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RFH 2010, Cover Stories, Town of Hamilton

Trustees Unhappy With Town Finances; Crumb Says Surplus is Evaporating

Fri, Feb 11, 2011

Trustees want budget process changed. Dave Crumb suggests the surplus that was once $1.2 million is going away quickly and major tax increase looms.

All four of the trustees on the Hamilton Town Board expressed their displeasure with Supervisor Bob Kuiper's handling of the budget and what appears to be a rapidly shrinking surplus of funds last night.

Trustee Dave Crumb read a prepared statement that excoriated Kuiper for the handling of the 2011 budget, which he said will end with a $255,000 deficit. Crumb also said the remainder of a $1.2 million surplus discovered by a recent audit by the state Comptroller's office will be gone as the 2012 budget year begins and the town could face a mammoth tax increase.

Also on Thursday night, three trustees -- Peter Darby, Carolyn Todd and David Holcomb -- submitted a letter requesting Kuiper present a timeline for the development of the 2012 budget by March 10. And, they requested he actually present two spending plans, one the reflects finances based on the 2 percent property tax cap being discussed in Albany and one based on the current tax levy. 

The three also said that they would not approve any budget that uses money from the fund balance to offset the tax levy. This was done in an 11th hour meeting in December with $100,000 being used to zero out a proposed tax increase.

Kuiper had no comment on Crumb's statement or the letter from the other three supervisors.

Much of the concern over finances is aggravated by several major purchases highway department that are looming:

  • a new truck;
  • a new payloader;
  • a new pickup truck;
  • and a building in which to store salt the department uses on roads in the winter.

Ronda Winn, who serves as the village clerk, has been hired by the town to assist with financial issues. She replaces Sue Urben who had been working for the town until she moved to Cicero.

Winn told the board that there are conversations going on in Albany that would allow towns to exceed the 2 percent property tax cap if a super majority of the board -- two-thirds -- voted to approved a higher tax increase.

Winn also said a representative of the Comptroller's office will meet with the board next week to help it sort through some of the questions regarding town finances.

Here is the complete text of Crumb's statement:

"I am writing this to voice my concern, disillusion and, frankly, my outrage over the 2011 budget process. There were many instances of misrepresentation and lack of forethought that will haunt the town for many years to come.

"When the process started, the council was presented with a budget with many issues that could not be explained, without the then assistant Sue Urben. Unfortunately, she was not available to the councilors to answer all our questions. Because of this, many issues slipped through the cracks. The most important of these was the carryover of approximately $155,000.

"Unbeknownst to the council, the budget was padded with a carryover of this amount. Unfortunately, the previous budget was approximately $100,000 in deficit, so not only was there no money to carry over, we were actually in the red. So when we went into the special meeting in December, the true amounts wee never known. As this figure was not taken out of the surplus we all thought there was a great deal more money available than there really was.

"The $1.2 million surplus was only that at the beginning of the 2010 year. Over the year issues came up to whittle that down. Before the December meeting it was less than $1.1 million. By the end of the year it was down much further. A new pickup, and a highway truck ate heavily into this balance. That was not told to the people before the meeting. Leading all to believe that there was a lot more money than there was.

"The 2011 budget does not include any addition to the fund reserve for future purchases. The board met in late January to plot this out; it will take approximately $100,000 annually to meet the town's needs for a 10 year replacement plan (of equipment).

"Because of these issues, the 2011 budget is in deficit by more than $255,000. With other purchases looming. Another highway truck, a new payloader, another new pickup and a much needed salt barn, this fund is just over $200,000. So at the start of 2012, we will blow the last of the fund balance and still be in deficit, or face a 45 percent tax increase. Or even worse, 63 percent if we factor in the $100,000 for equipment purchases.

"Over the next year this board will have to face many challenges and frustrations. The outcry on this issue will be great. We will only be able to meet these if we, the council, are given the facts in an upfront manner. Gone are the days in which one person can run a town on their own. We all must work together in a way that we all use our skills to guide us out of this financial mess."

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