|
Assessment, budget relationship quizzed
Taxes are expected to drop nearly 2.6 percent under Cheektowaga's 2008 tentative budget, but despite the tax break residents at Tuesday's budget public hearing questioned how the budget affects- and how it's driven by- residential and commercial property values.
The drop translates to a tax bill that will be roughly $40.00 less than the average tax bill in 2007, based on a home valued at $58,000.
However, many properties in town were reassessed at higher values this year. The affected property owners will pay more than their previous tax bill.
Stan Kaznowski, president of the Town Park Homeowners Association, asked how construction at Walden Galleria has affected taxes.
"The mall, I believe, is 10 percent or 12 percent of the rolls," Kaznowski said. "How much of that is factored into the budget, not only the assessed values but also building permits?"
Councilmember Jeff Swiatek said the anchor stores are assessed sepa rately from the mall. He pointed to Macy's and Lord & Taylor as examples. Lord & Taylor was purchased by Macy's.
"They annually challenge assessed values with the town," Swiatek said. "There are different components with the Galleria. You have to look at each of those."
Brian Krause, director of Administration and Finance, noted that a portion of residential properties are reassessed throughout the town each year. He did not indicate the size of the portion, but the town for several years attempted to use a seven-year cycle on assessing homes.
Councilmember Tom Johnson said residential assessments were hiked $45.4 million in 2007.
"Many ranged from five to 25- percent increases," Johnson added.
Pressing the commercial property topic farther, Kaznowski asked how vacant buildings are taxed.
Supervisor James J. Jankowiak said commercial properties are taxed at the full or negotiated value without regard to their tenant status.
"Whatever the negotiated tax rate was with (Town Assessor) Brian Hess or with the county (Industrial Development Agency), that's the tax rate they pay whether it's full or empty," Jankowiak said.
Cheektowaga has $113,000 budgeted for "outside" legal costs re- lated to commercial assessment challenges and housing issues.
During his budget review, Krause said personnel and benefits comprise 70 percent of the townwide budget.
However, the town's switch to one insurance provider for all five of its collective bargaining units appears to be paying off. Personnel costs are expected to rise by $1,176,225 but fringe benefits are projected to drop by $1,181,353.
The decrease in fringe benefits more than offsets the personnel costs.
Personnel costs were reported at $29,691,446 and fringe benefits added $15,166,295.
"We're very pleased with being able to control our costs that way," Krause added. "It's helping us out quite a bit."
A breakdown of the budget shows that the town spends 38.2 percent of the $63.9 million Ad Valorem (townwide) budget on public safety.
The rest of the Ad Valorem categories and portion of the budget include highways, 15.2 percent; garbage, 14.8; culture and recreation, 14.4; general government support, 13.1; and street lights, 4.3.
Most of the spending- 91 percent- in the Benefit Basis (areas specific to the town that receive a benefit) budget is used to manage the town's sanitary sewer and consolidated sewer districts. The rest of the $12.1 million Benefit Basis budget is spent in the drainage district, five percent, and seven fire hydrant districts, four percent.
| 
