Preliminary county budget under tax cap

SCHUYLER COUNTY--Schuyler County Administrator Tim O'Hearn provided preliminary 2016 county budget numbers last week, which indicated the county should remain below the tax cap in 2016. The numbers indicated a 0.67 percent tax levy increase from 2015. The projected 2016 tax levy is $11,055,443, up from $10,982,333 in 2015. Meanwhile, the state tax cap is set at $11,295,305, which would allow a 2.85 percent increase.
While this budget has a slight increase in the tax levy, the preliminary county budget indicates a 0.75 percent decrease in the tax rate. The projected 2016 tax rate is $8.18 per $1,000 of assessed value, down from 2015's $8.25. O'Hearn indicated the total budget in 2016 is $45,377,604, up 3.08 percent from 2015's $44,020,925. Despite the minimal increases, O'Hearn still cited concerns with the state of the county's reserves.
"The proposed budget stays within the tax cap and represents a reduction in the tax rate for 2016," O'Hearn said. "While we are in a far better position than at this time last year, I am still concerned that we are operating with minimal reserves and that this is an extremely tight spending plan. With the exception of highway, this is for all practical purposes a flat budget."
O'Hearn said for the first time in four years he was able to budget an increase in sales tax. He noted this is based on 2015 trends and the anticipation of another music event at Watkins Glen International in 2016. O'Hearn said sales tax collections currently are on track to exceed the 2015 budget, but it is expected the third quarter results will either support or refute this estimate for 2016. O'Hearn said a decrease in certain cost areas has allowed the county to preserve the programs they currently offer, as well as their current staff.
"We are experiencing relief in pension costs and Medicaid expenses and the initiatives that have been implemented over the past several years are beginning to pay dividends," O'Hearn said. "All of this has helped offset spending increases and resulted in what I feel is a very responsible spending plan. The budget preserves all programs and services with no workforce reductions."
O'Hearn noted while there may still be some numbers that will impact the budget, he does not anticipate a tax rate increase in the coming year.
"There is a large unknown with respect to retiree health insurance premiums which may have a negative impact on these numbers," O'Hearn said. "I think it is safe to say though that a tax increase is unlikely in 2016."