Town Board budgets for 2021

NORTH EAST — In spite of the challenges imposed on the town by the COVID-19 pandemic, its Town Board has been moving forward in developing a sound budget for the 2021 fiscal year.

Town Supervisor Chris Kennan reflected on the impact that COVID-19 has had on state, county and municipal financial planning, adding it’s more pronounced on the state and (to some degree) the county than on local towns and villages. Though North East has received some funding from the state, he pointed out that funding will be significantly reduced next year. 

Kennan said one of the areas that will be affected next year include money the town gets for its highway budgets. The largest piece of that funding, he said, is going to be reduced by 20% for 2021 and includes money for resurfacing roads, grading roads, cleaning ditches and culverts and other important road maintenance.

Kennan also said the cost of living increase for next year, which is factored for Social Security, will be 1.5%. A typical cost of living increase is usually in the 3% range most years. He went on to say that the town is providing its employees with an across-the-board 2% cost of living increase for 2021, adding that both the Town Board and the town clerk have decided not to take a raise next year.

“We felt it was a very difficult year,” Kennan explained, “and we all felt with all the pressures from our budget from COVID in particular that we preferred not to take any cost of living increase, so we will have zero increase in our salaries.”

Another budget item affected includes the ongoing construction of the joint town and village highway garage. Kennan said the town took out a Bond Anticipation Note (BAN) for the work that’s been done so far at a 0.95% interest rate. However, as the town looks toward building the actual garage facility in phase three, he said its construction will be the biggest and most expensive part of the project. As a result, the town has started putting money into the budget to anticipate that cost. 

When asked how much money has been saved so far, Kennan said, “When we have a construction estimate that we are comfortable with — and we’re not there yet but when we do — we’ll be able to anticipate what the cost of financing it will be and we’ll have harder numbers at that point.”

Taking out next year’s fire district budget of $422,215, the grand total appropriations for next year’s town budget has been calculated at $3,051,739, with the amount to be raised by taxes (without the fire district budget) totaling $2,222,773. The total revenues have been calculated at $414,040.

The board adopted the preliminary budget at its meeting on Thursday, Oct. 8, and will continue to review the budget it at its meeting on Thursday, Nov. 12.