Sunday, June 27, 2010

“Tax increase approved for Black Mountain” plus 1 more

“Tax increase approved for Black Mountain” plus 1 more


Tax increase approved for Black Mountain

Posted: 27 Jun 2010 11:50 AM PDT

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The Town of Black Mountain Board of Aldermen approved a 4.5-cent property tax increase Thursday.

The board voted 3-2 in favor of adopting a proposed budget for the upcoming fiscal year that included the tax increase.

Aldermen Ruth Brandon, Joan Brown, and Carlos Showers voted for the budget. Aldermen Mike Sobol and Tim Rayburn voted against the budget.

The adopted budget for the fiscal year 2010-2011, which begins July 1, includes an 11.6 percent increase in the general fund over last year's original budget. The property tax rate for Black Mountain residents will increase from 32 cents per every $100 of valuation to 36.5 cents per every $100 of valuation.

The revised budget includes a 1.5 percent wage increase for town staff, instead of 2.9 percent originally proposed. It also cut contributions to the Black Mountain-Swannanoa Chamber of Commerce and the Swannanoa Valley Museum and requires the town to use $503,320 from the town's fund balance, or savings account.

Black Mountain Town Manager Marcy Onieal originally proposed a 12 percent increase in the general fund, with a seven-cent property tax increase.

After being asked two weeks ago for a budget with a four-cent increase, she presented a budget with a 4.5-cent increase.

That proposal won support from the majority voting in favor.

Onieal continued to defend her proposed budget at last week's meeting, saying the town could no longer delay several maintenance and capital improvement projects - many of which the aldermen approved funding for throughout the year - and insisting that while many spoke on one hand against tax increases, they asked for more town services on the other.

"The demand for quality service is not going down anytime soon," she said.

The public hearing during last week's aldermen meeting drew 28 speakers. Of those who spoke, 14 were opposed to a tax increase, three supported the increase, and eleven spoke against cuts to specific programs or personnel, but didn't indicate whether they supported a tax increase.

Opponents said the economic downturn required belt-tightening on behalf of citizens and governments alike.

"Some people would call me a tax-and-spend liberal because of some of my views, but that doesn't describe me this year," Bob Gunn said.

Some suggested the increased demand for public services didn't reflect the will of the majority of residents, and downplayed Onieal's assertions that recent transplants to Black Mountain were bringing higher expectations of their town governments.

"To a person, they moved here not because of what we could change the town into, but because of what we are," Mike Baldwin said.

Others said a tax increase would be too burdensome on the elderly and low-income residents.

In supporting a tax increase, however, Ann Lutz said her family was dealing with job loss, children in college, and caretaking for elderly parents, but would still be able to handle a tax increase.

"I can still do that, and I think most people can still do that," she said.

Defending her stance, Brown said, "I wish I would say I support no taxes. I would love it, but I can't go that way."

For his part, Showers said, "I wouldn't ask anybody in this town to do anything I wouldn't do myself."

Unconvinced, Rayburn made a motion to hold another budget meeting to consider a budget proposal by Sobol.

Sobol laid out a plan to achieve a budget with no increase over last year, and no tax hike. The proposal was largely similar to what he outlined at a budget workshop one week before, although he softened his stance on eliminating some town staff positions.

Sobol handed out a list of changes to the proposed budget, which included, among other things: delaying a sewer project, further trimming raises for town staff, repairing old vehicles instead of buying new ones, and using savings to pay down the loan on the Town Square property, thus halving the $208,320 payment due in July.

In the end, however, he and Rayburn did not have the votes.

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Property Tax Cap and Wine Sales in N.Y. Budget Bill

Posted: 25 Jun 2010 09:43 PM PDT

ALBANY — Gov. David A. Paterson is including controversial proposals to cap local property taxes and allow the sale of wine in grocery stores in an emergency budget bill that lawmakers are expected to put to a vote on Monday to keep state government operating.

The bill would also restore about $300 million in school aid, a top priority of Assembly Democrats, while cutting $250 million from state agencies on top of cuts proposed by Mr. Paterson in January.

Another provision would raise about $330 million by temporarily suspending the sales tax exemption on clothing and shoes costing less than $110.

The bill sets the stage for a final 48-hour negotiating sprint before the legislators return next week, when they will have to vote on the measure or risk shutting down parts of the state government, which has been operating under emergency legislation since the new fiscal year began on April 1 without a budget deal. If approved, the bill would be the 13th such measure since April.

"I am willing to listen to alternative solutions to New York's budget crisis, and will continue to listen to suggestions from the Legislature over the next 48 hours," Mr. Paterson said. "However, while the door remains open for negotiation, it will not be on Albany time, where deadlines only exist to be extended or ignored."

Both the Senate and the Assembly have objected to the proposal to allow groceries to sell wine, a provision fiercely opposed by the liquor-store lobby but one the Paterson administration estimates would bring in about $150 million in one-time franchise fees.

While Senate Democrats have favored a flat property tax cap similar to Mr. Paterson's, the idea is anathema to Assembly Democrats, who prefer a cap that excludes wealthy homeowners, suggesting that Mr. Paterson is seeking additional leverage as he goes into negotiations this weekend.

Earlier on Friday, Sheldon Silver, the Assembly speaker, and John L. Sampson, the Senate Democratic leader, said that Democrats in the Legislature had already reached a consensus on how to close what remains of a more than $9 billion budget gap but that Mr. Paterson had declined to adopt their approach for reasons they said were unclear.

Asked whether he thought Mr. Paterson was negotiating in good faith, Mr. Silver answered, "I think we'll find that out over the weekend."

The governor is also proposing to expand a plan to allow the state and municipalities to borrow from the state pension fund. Under a tentative deal reached earlier this month, the administration and lawmakers said they would approve a plan to borrow nearly $6 billion from the pension fund over the next three years. The modified proposal, if approved, would increase that borrowing period to six years and more than double the amount of borrowing allowed.

While the property tax cap is something of a poison pill and may well be dropped by the end of the weekend, Mr. Paterson's emergency bill includes a number of concessions to the Legislature.

He is substantially modifying a proposal that would allow State University of New York and City University of New York schools to raise their tuition without legislative approval.

The revision would lower the rate at which tuition could rise under the plan while expanding the state's financial aid program, changes that appear to be intended to sway the Assembly Democrats, who have opposed the plan for fear that it would make public colleges less accessible to the poor.

The new emergency bill also includes a proposal to bring in $100 million by reducing the deductibility of charitable gifts to 25 percent from 50 percent for individuals making $10 million or more.

The administration will also reduce cuts by using about $200 million in higher-than-projected tax revenue for the first quarter of the fiscal year.

"We need three sides to agree," said Mr. Sampson, speaking to reporters on Friday morning. "We're getting close — extremely close."

Danny Hakim contributed reporting.

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