PART 2: HOW ARE YOUR TAX DOLLARS SPENT?

By Supervisor Susan Siegel

What does it cost to run the Town of Yorktown? In this article I will explain where the money comes from and where it goes.

First of all, Yorktown’s budget is comprised of many “budget funds”. The three major funds, which together total $30 million of the $49.5 million overall budget, are: the General Fund which pays for most of the day-to-day operations of the town government, the Highway Fund, and the Library Fund. All taxpayers, both residential and commercial, pay into these three funds.

Special district funds for sewer, water, refuse, and special park districts account for the remaining $19.5 million, but the taxes for these funds are only collected from the residents who benefit from those specific services. For example, the $388 refuse tax which covers trash, recycling, and seasonal organic pick-ups is only paid by residential properties. Commercial properties must contract for trash services directly.

REVENUE
Just over half of the Town’s revenue for the General, Highway and Library Funds, or 56%, comes from property tax.

The next biggest revenue source is sales tax – something which the town has no control over. Using a population-based formula, the County distributes a portion of the sales tax collected throughout Westchester to the towns and school districts. In 2010, Yorktown anticipates receiving $4.2 million in sales tax, or 14% of our revenue.

User fees are our next biggest source of revenue: fees to use the town pools, sign up for a recreation program, or have a building permit processed. Fees are different from taxes because they are only collected from the people who choose to use those services. It’s important to note that user fees rarely cover the entire cost of the service provided – taxes pay the balance.

The remaining 30% comes from a potpourri of miscellaneous sources ranging from $250 for museum revenue to $185,000 for Cortlandt’s use of our library, and $219,000 in YCCC rents. We also receive about $800,000 in franchise fees and cell tower leases.

EXPENSES
How are your General, Highway and Library tax dollars being spent?

In my first budget article, I wrote that Town taxes represent between 17%-20% of your total tax bill, depending on which school district you live in and whether you have public water and sewers.

For a typical homeowner on public water and sewer, that translates into a total town tax bill of $2,757. Approximately $1,321, or 48%, goes to the three major funds.

So what are you getting for your money?

A 58 man police force (plus 9 civilians) responded to 12,885 service calls in 2009, of which 32% were for responding to false alarms and providing assistance to residents.

At $9 million, the police department accounts for 41% of the Town’s $22 million General Fund budget.

“Black” roads in the winter. Last year, the Town spent $1 million on snow removal, or 18% of the total highway department budget. It costs between $50,000-$70,000 to make one snow plowing “pass” through the entire town. That cost increases if de-icing materials need to be spread.

A year-round recreation program that offers programs for all ages, from tots to seniors.

23 recreational facilities including two swimming pool complexes, playgrounds, sports fields, tennis courts, bocce courts, picnic areas, a walking track, a lake and beach area, an in-line skating rink, a skate board park, and miles of hiking trails.

A library, museum and theater.

A senior nutrition program, senior center and special senior transportation services.

Could the town be providing more services? Of course, but at what cost? How much are you willing to pay for more services? Or are you willing to see a reduction in services if that’s the only way to cut taxes? I would like to hear what’s most important to you.

Please contact me at supervisor@yorktownny.org or complete the short questionnaire on the Town website.

The following two pie charts illustrate the major revenue sources and expenditure categories for the combined General, Highway and Library Funds.

In my next budget article I’ll talk about the Town’s capital budget – what improvements are needed to upgrade and repair the town’s aging infrastructure and what, if any, new facilities we may want to consider constructing over the next five years.