NEW CASTLE, NY-- Due to a legislation in June from Governor Andrew Cuomo, New Castle was one of many local governments scrambling to comply with the state-wide tax cap, which will go into effect in 2012.
On Thursday, New Castle Town Administrator Penelle Paderweski submitted tentative budget appropriations of $36,289,790 for the upcoming year and explained how the town was able to make it work under the cap.
The budget process changed dramatically this year because of the Property Tax (Levy) Cap, said Paderweski in a message accompanying the budget. It is no longer a matter of just looking at revenues, expenses, assessed valuations and making them work together to come up with a reasonable tax rate for our residents. There was something new.
Under the new law, as Paderweski explained, the growth in the property tax levy, which is the total amount to be raised through property taxes charged on the municipalitys taxable assessed value of property, will be capped at two percent.
The tentative tax rate for 2012 stands at 2.98 percent. The town arrived at the figure by dividing the levy by the total assessment and multiplying that by 1,000.
The tentative assessed valuation for the entire town of New Castle is $1,077,143,252, which is down .41 percent, or $4,428,388, from 2011s valuation.
We were able to keep the tax rate down to a moderate level even with a decrease in assessments by cutting our appropriations, said Paderweski.
The towns largest budget appropriations are reserved for general and highway funds, which at $22,573,590, makes up 62 percent of the total budget. The figure saw a decrease of $94,118 in the tentative 2012 budget.
Other major parts of the budget include the water district at 24 percent and the refuse district at 9 percent. The tentative budget can be viewed in its entirety on the towns website.
As we continue to find ways to do more with less or start having to do less with less, we look to our residents for support and understanding that we are working hard for our community to do the best we can under the tight financial constraints that everyone is asked to work under, said Paderweski.
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