The Peru Gazette

By John T. Ryan

Town of Peru taxpayers will have the opportunity to voice their opinion of the town’s preliminary 2012 budget at a Public Hearing scheduled for Thursday, November 10^th at 6 p.m.  The Peru Gazette sat down with Town Supervisor Peter Glushko earlier this week and discussed some of the budget details.

In his budget introduction Glushko stated the 2012 tax levy will be well below the 2% cap.  The general and highway levies remained the same while the sewer tax levy will increase by 2% because of increased retirement and health insurance costs.  The general tax rate will be reduced from $1.92 to $1.91/m. The highway department tax rate will decrease from $2.36 to $2.35/m.  The board has budgeted $3,857,331 to operate the town, $2,051,263 of which is raised by taxes.  Other significant sources of revenue include water and sewer fees, court fines, mortgage taxes, grants, zoning permits and cable television franchise fees.

Elected and non-elected staff members will receive a 1.5% raise.  Commenting on the raise Glushko said, “The 1.5% isn’t quite the 2% that the cost of living increased. It’s a balance to meet the wants and needs of both taxpayers and employees.”

Retirement, workman’s compensation and health insurance costs are increasing in all departments, i.e. general, highway, water and sewer.  In 2009 the town’s retirement contribution was $56,185.  In 2012, $178,840 has been budgeted for retirement expenses. In 2009 the health insurance cost was $177,065. Next year $231,025 has been budgeted. Workman’s Compensation cost the town $37,962 in 2009. Next year it is budgeted at $53,021.

While the proposed general fund tax levy is not increasing, general fund spending will increase from $1,288,479 to $1,425,268.  The increased costs will be paid for by transferring $121,322 from the town’s unexpended fund balance and by reallocating monies within the budget. Glushko explained, “The state comptroller recommends that we maintain a 12% to 18% fund balance and we’re working to do that.” The unexpended fund balance at the end of 2012 is projected to be $446,976.

Highway Department projected spending totals $1,478,061, up from the $1,253,877  budgeted for this year. $52,988 will be drawn from the department’s unexpended fund balance leaving a year-end balance of $305,498.  Monies from the equipment reserve account will be used to replace one of the department’s older trucks. The board contributes to that account each year in order to have funds available when equipment is scheduled for replacement.  The board has also included $50,000 in the general fund for repairs to the highway department garage roof.

Solving the town’s water quality problems has been a board priority over the past year.   Engineers have discovered that the water plant’s filtration media has not functioned properly since the plant’s opening day or soon thereafter. Apparently, when the plant was opened a water pressure “blow-out” occurred which eliminated about 75% of its filtration media. Glushko anticipates that the town will be issuing a $2.7 million 20 to 30 year bond to correct the filtration problems and to continue the town’s upgrade of its aging water and sewer line infrastructure.