Rothwell offers budget amendments trimming 2027 proposed tax levy increase to 1.73%

Council Member Ken Rothwell has proposed six amendments to Supervisor Jerry Halpin’s tentative 2027 budget that would reduce the proposed townwide property tax levy increase from 2.79% to about 1.73%.

The amendments would lower the amount to be raised through townwide property taxes by $643,858 compared with Halpin’s proposal, using higher revenue estimates and shifting certain equipment purchases to fund balance.

The revised townwide levy would be $62.24 million, an increase of approximately $1.06 million over the 2026 levy of $61.18 million. The townwide levy covers the General, Highway and Street Lighting funds.

Rothwell, who is challenging Halpin for supervisor in this year’s election, said during today’s Town Board work session that he developed the amendments with the town’s financial administrator and the other council members. He said all the other council members support them.

Halpin did not respond to a request for comment as of presstime.

In a phone interview, Rothwell said the town’s investment earnings provide an opportunity to ease the burden on taxpayers while maintaining reserves. He said the town earned $4.8 million in investment returns on its fund balance.

“That money belongs to the taxpayers,” he said.

Rothwell said “we did not decrease or remove any services” in developing the amendments.

Two of the resolutions would remove a combined $201,237 in equipment and vehicle expenditures from the preliminary budget, with the purchases instead to be funded from fund balance through separate Town Board resolutions in 2027.

The first would remove $53,300 for buildings and grounds equipment, $50,000 for fire marshal equipment and $55,000 for refuse vehicles. It would reduce the General Fund property tax levy by the same $158,300.

Another would remove $42,937 for street lighting equipment and increase estimated interest earnings by $48,629. Together, those changes would reduce the Street Lighting District’s proposed property tax levy by $91,566.

Paying for the equipment later from fund balance would change how the purchases are financed rather than eliminate their cost.

The largest levy reduction would come from increasing three General Fund revenue estimates: building inspection fees by $165,941, interest earnings by $250,000 and fines and forfeited bail by $50,000.

That amendment would reduce the proposed General Fund tax levy by $395,941 and reduce the amount of fund balance appropriated to support the budget by $70,000.

The package also includes additional employee compensation and insurance funding.

One amendment would add $1,949 to the General Fund tax levy to cover an additional merit increase for a Highway Department administrative employee, including retirement and Social Security costs.

Another would transfer $5,392 from the Highway Fund’s snow contractual account to cover a promotion and a merit increase, along with related longevity and benefit costs. That transfer would not change the levy.

The sixth amendment would provide $120,000 for a possible change in dental insurance plans for CSEA employees. It would fund the additional insurance appropriations through higher building inspection fee and interest revenue estimates, along with a $25,371 transfer from highway equipment. It would not change the tax levy.

Rothwell said he distinguishes between using reserves for one-time purchases and relying on them to support recurring expenses.

He said “we never want to use fund balance for ongoing costs,” citing payroll and employee benefits as examples.

Rothwell said he asked his personal financial advisers to review the publicly available tentative budget, then brought their findings to the town’s financial administrator. He said she was comfortable with the amendments and the revenue assumptions supporting them.

He also questioned whether the previous budget’s tax increase had been necessary, given the investment earnings the town received.

“However, we did not need to have the tax increase that we did last year,” Rothwell said.

Rothwell said he voted for that budget because of concerns at the time about economic conditions and potentially higher health insurance costs. He said the town’s stronger reserve position now allows it to provide some relief to taxpayers.