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After learning what impact the new state Tax Cap law could have on future Town budgets last week, the Lansing Town Board continued to debate a proposed tax rate cut that could be as much as 33%.  Lansing Supervisor Scott Pinney asked each board member whether they had come up with anything not previously considered that could impact the budget.  But after considering a number of real impacts and possible ones, three of the five board members said they are still comfortable with a 33% tax rate drop this January.

"I'm using the best numbers that we have," Pinney said.  "If we used every single 'if' we'd have to raise the tax rate.  So these are the best numbers that I've come up with over two months.  We'll still have an increase in our fund balance.  The plan would be to look at it again next year, take whatever that number is, cut it again, look at it again, and hopefully cut it again in the third year."

The large drop under discussion is a result in various reductions in year to year expenses.  Last year the Town paid off its debt, meaning those annual payments are no longer maid.  Sewer expenses are considerably lower than they were, and positions have been eliminated or reduced among the town workforce.

Pinney and Councilman Robert Cree said that the numbers stand up, but Pinney said that explaining such a drastic tax rate cut to the public is difficult.  He said the key is that tax rate cuts over the next three years don't just take money out of the Town's fund balance, but leave enough revenue to put money back in, gradually reducing the fund balance to a reasonable, sustainable level.  Pinney said there is still room to cut 15% next year and possibly more the following year.

Board members continued to look at threats to Town revenue, especially the uncertain fate of the AES Cayuga power plant, which Miller reported is plummeting in value and losing money.  She noted that tax revenue from the plant accounts for 8.6% of the school budget.  It comes to abut 3% of the Town budget.  Pinney says it would mean the Town would lose $112,000 in revenue.

"It's not the biggest part of our budget," Wilcox said.  "But it does impact all the taxpayers."

Wilcox said she would like to budget an additional $10,000 to $20,000 for legal fees, noting current litigation and issues on the horizon that may require more legal advice.

"We don't know what's going to happen with gas drilling," she said.  "There may be some other litigation coming.  I'm looking at all these little litigations that could possibly happen.  I'd rather be safe than sorry."

Board members agreed to add $10,000 to the budget for legal fees.  Pinney explained that would have an impact on the tax levy.

Miller said she had been researching what it will take to protect Lansing roads from the impacts of gas drilling.  She said the State provides a municipal guide, and that she had asked Town Attorney Guy Krogh about potential legal fees the Town could incur in the course of changing legislation to protect town roads.  She said it will be necessary to hire a professional engineer to assess the condition of the roads now to provide a base line for determining damage caused by excess truck traffic later.

Using state estimates and adding in legal fees that she says could go as high as $50,000, Miller recommended putting $100,000 into a reserve fund.  She said it is less than other towns in Tompkins County have already spent.

"We have to spend this money because the gas developers have so much money," she warned.  "You have to be sure of what you're doing because they'll challenge you every step of the way."

Pinney said money for fracking related legislation should be transferred from the fund balance to a reserve fund.  He said those funds should not increase the tax levy.  Wilcox said the town could save some money by inventorying the roads in-house and having an engineer from TG Miller certify it.

Other budget items were also discussed as the board works its way through the budget.  There was a lengthy discussion of the amount of legal fees the Planning Board incurs, with a general consensus that board is relying too heavily on legal advice.  Some board members compared the Town Planning Board unfavorably with those of other municipalities, noting that other boards do not need to rely as heavily on their attorneys, only asking for legal advice in particular instances when it is needed.  Councilman Marty Christopher said that more drastic changes need to be made to the Planning Board than just a change in the 'Planning Board/ Attorney situation'.  He challenged the effectiveness of the current Planning Board leadership.

Last week Caroline Town Supervisor Don Barber laid out towns' responsibilities under the new state tax cap law, and the board looked at possible impacts it could have on how low a cut could go this year.  Whatever tax levy is set for this year will impact the amount the Town can raise taxes in future years.  But the law also gives municipalities an out -- it the Town Board votes a supermajority of 60% -- three of the five votes -- it can choose to ignore the cap.  Cree says that while the law figures into future budget calculations, it t has negligible impact on the Town's ability to fund itself.

"He also indicated that if we felt it was our intent to go above 2% the state gave us the latitude to pass a resolution every year," he said.  "To me, at the end of the day it's a moot point.  We have to do this calculation, and if you have to raise your levy by more than 2% we have that ability.  We need to keep it in mind."

All board members agree that they don't want to override the cap, or raise taxes at all.  And several noted that the Town is in such good fiscal shape that they don't have to do that.

"That's why I'd rather be more conservative with the tax cut in this year and following years," Wilcox said.  "I realize we're going to be building the fund balance, but most of the people that I've talked to are more than happy with a 15% decrease in their taxes.  When the initial 44% came out they asked me, are you guys nuts?  That's not being fiscally responsible."

At this stage Pinney, Cree, and Christopher say they are comfortable with a 33% tax rate drop.  Wilcox said she could vote for a 28% drop, and Miller 15%.  Town Bookkeeper Sharon Bowman (who is not a voting member fo the board) said she would be comfortable with a 12% tax rate drop.

One more budget meeting is scheduled before a final draft of the budget will be prepared.  A public budget hearing on November 9th at 6pm, after which the board will vote on a final budget.

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