Town Supervisor Gerry Siller’s draft 2024 budget proposes an 11.82 percent tax levy increase over current spending at the start of lengthy discussions with the rest of the Town Board.
The 2023 tax levy was $11.1M; for 2024, Siller’s budget proposes taxpayer support of $12.4M (up $1,315,146). The Town Board would have to vote separately on a resolution to exceed the state’s 2 percent tax levy cap.
Siller says the increase is due primarily to falling mortgage tax revenue coupled with proposed across-the-board raises of 3 percent to match CPI, rising costs for contractual obligations, and the addition of new Town positions to ensure effective delivery of programs and services.
He’d also like to increase and make more predictable employee take-home pay by shifting more of the burden of employee health insurance to the Town — a proposal with an initial $76K price tag.
Follow the links to read: the proposed budget and the Supervisor’s budget letter (at the bottom of this post). Work sessions for the budget are September 20, 21, and 29, with additional meetings as needed in early October. Follow them via Zoom or watch recordings on the Town’s YouTube channel.
In his cover letter, Siller said he’s continued his practice of meeting with department and committee heads to discuss their needs. As in the past, he presents their proposals alongside his recommendations to the Town Board.
In previous budgets, he said his goal has been to provide a low starting point and let the Town Board add as necessary. But this time, “I’ve decided to address what I believe are the needs of the Town and will let the Town Board decide what to keep, eliminate, add or decrease.”
Salary increases, health premium reductions
Siller’s plan endorses across-the-board salary increases of 3 percent to match CPI, he said. Additional targeted increases reflect a need to “offer competitive salaries in order to attract the best candidates.”
“Added to this are two issues that are new to us, the first being that the majority of our candidates no longer live on the Island, so transportation costs need to be factored into the salary,” he said. “The second factor is the employee contribution towards health insurance.”
Town policy requires employees hired after June 12, 2012, to contribute 20 percent of the cost of their health care premiums. The rates for past hires were governed by agreements that called for contributions ranging from 15 to 25 percent of premium costs.
As a result, on average, an employee’s cost of individual coverage represents 6.4 percent of pay, and for family coverage, 9.33 percent. Siller’s proposal seeks to set employee cost as a percentage of salary, reducing the impact to 2 percent of pay for individual coverage and 4 percent for family coverage.
“This would help new employees on the lower end of the pay scale the most but would help all employees who contribute,” he said.
Without the change, the overall cost of employee benefits is expected to rise by $411,631. Picking up a greater share of employee health insurance premiums would have a one-time cost to the Town of $75,802, boosting total budget-to-budget employee benefit expenses to $487,433.
Not immediately clear was what mechanism the Town would employ to make the change, given that employee health insurance premiums may be subject to negotiation for some of the Town’s bargaining units. Going forward, the Town would absorb health care premium costs that are beyond the caps expressed as a percentage of salary.
New and expanded positions, targeted raises
Siller’s budget proposal also endorses additional staff positions, including a Human Resources officer, to help ensure the Town operates “by the book.”
He said the cost could be offset by funds currently allocated for an unfilled position in the Town Clerk’s office. The office has run with just three people for about a year and the addition of new software should streamline the workload, he said.
To improve efficiency in the delivery of the Town’s Senior Services and Nutrition programs, the Supervisor suggests creating a new position. A Nutrition Site Coordinator would manage the congregate and home-delivered meals program, relieving Senior Services staffers of these duties and enabling them to focus on other aspects of senior care.
“We will continue to address the needs of our senior citizens and are optimistically hoping to continue to grow our Senior Services program,” he said.
The Supervisor’s budget rebuffed the Town Engineer’s request for a 9 percent raise, sticking instead to the 3 percent recommended for others. However, it endorses a request from the Engineer and Water Advisory Committee to provide a new budget line of $45,000 for data modeling and hydrology consulting services.
The budget proposal also calls for continuing the expansion of paid EMS, funding 24/7 coverage by a trained paramedic. The budget line approved last year enabled 12 hours of daily coverage. The cost would nearly double from $241,000 to $431,250.
The proposal also incorporates rising costs of a variety of contractual obligations, Siller said.
On the revenue side
On the revenue side, the budget anticipates a decline in home mortgage tax revenues as a result of post-pandemic market tightening that’s expected to continue.
In past discussions, the Supervisor has pushed for user fees and recommended increasing permit fees to offset taxpayer burdens. “The Town Board will continue doing that,” Siller said.
Where applicable, it may use $260K in ARPA Funding (federal/state COVID-19 aid) to offset appropriations, he said, and the Town will look at other potential funding sources.
Supervisor’s budget cover letter
Below is the text of the Supervisor’s budget cover letter:
As Town Supervisor and Chief Financial Officer, it is my duty to present to the Town Board my Proposed Tentative Budget. This is my eighth and final budget presentation. I’ve always met with the Department and Committee Heads to discuss their needs, recorded them, and presented their proposals and mine to the Town Board. My tact was to always start with a low proposal and let the Town Board add as necessary. This year, however, I’ve decided to address what I believe are the needs of the Town and will let the Town Board decide what to keep, eliminate, add, or decrease in the budget.
I originally wanted to propose a four percent salary increase for all employees and two percent (2%) for elected officials, but the current CPI is at three percent (3%) and that’s what I went with for everyone except in specific cases that will be noted in the Budget presentation.
As we have been interviewing people for various positions in Town government, a number of things have come to our attention. The primary observation being that we must offer competitive salaries in order to attract the best candidates. Added to this are two issues that are new to us, the first being that the majority of our candidates no longer live on the Island, so transportation costs need to be factored into the salary. The second factor is the employee contribution towards Health Insurance. Current Town Policy requires a twenty percent (20%) contribution from any new employee or anyone hired after June 12th, 2012, a fifteen percent (15%) contribution for those hired between September 2004 and June 12th. Between March 2009 and June 2012, the contribution was twenty-five percent (25%) but the Town Board lowered it to twenty percent (20%) in 2012. With this formula, the average employee pays approximately 6.4% of their salary towards single premium coverage and 9.33% of their salary for family coverage. My proposal is to change the contribution percentage from 20% of the premium to a two percent (2%) contribution for single coverage and four percent (4%) for family coverage. That percentage would be based on the employee’s salary. This would help new employees on the lower end of the pay scale the most but would help all employees who contribute. The additional cost to the Town would be approximately $ 75,802. Overall, the fixed increase in employee benefits over last year is a sizable increase of approximately $411,631. With the additional proposed increase to the percentage paid towards Health Insurance, the total Benefits increase is approximately $487,433.
I am also proposing we officially create the position of Human Resource Officer. As many people are aware, the Town is often challenged that we don’t do things “by the book.” The Town Attorney is addressing that and advising the Board on where and what we need to do to correct this. At the same time, I am proposing to drop one position in the Town Clerk’s office. The Office has been running with three people for the better part of a year and with the addition of new software, we hope to be able to streamline the workload even more.
I am also proposing we make some changes within the Senior Service/Nutrition Programs to make them both more efficient. Some of the changes are just moving things between departments but a significant one is recreating the position of Nutrition Site Coordinator. We will continue to address the needs of our senior citizens and are optimistically hoping to continue to grow our Senior Services Program.
After working with the Town Engineer and the Water Advisory Council to address the Town’s needs, I’m supporting their recommendation and proposing additional funding for Data Modelling and a Hydrology Consultant in the amount of $ 45,000.
In summary, the major proposed increases are based on:
- creating a new HR position, as well as a Nutrition Site Manager position
- increasing the Town’s contribution to health coverage
- addressing Water Advisory Committee concerns
- a substantial increase in fixed appropriations
- a significant decrease in Home Mortgage Tax
- an increase of $ almost $ 200,000 toward full-time EMT coverage
In previous budgets, we were able to incorporate user fees and increased permit fees to offset tax increases. The Town Board will continue doing that, looking at using the $ 260,000 in ARPA Funding (Covid money) wherever applicable to offset appropriations, as well as looking at other potential funding sources.
