MORIAH — The new Moriah town budget has a tax-levy increase of 7 percent, but it will probably be reduced when a remaining fund balance is applied.

The increase is expected to drop to about 3 percent after a 7 p.m. public hearing Thursday at the Port Henry Knights of Columbus Building.

The Moriah Town Council will hold a meeting following the public hearing to adopt the budget.

The proposed 2010 budget totals $2.69 million, minus special district budgets, a 1-percent increase from this year's $2.67 million.

It would raise $1.68 million from property taxes, a 7-percent increase over the $1.57 million tax levy this year.

HIGHWAY BUDGET
Moriah Supervisor Thomas Scozzafava said one Town Highway Department position was eliminated through attrition, and the savings will be used to purchase needed highway equipment.

The highway portion of the budget increased by about $10,000.

FUND BALANCE
The town has about $500,000 left in its fund balance, some of which will be used to reduce the tax levy after the public hearing, Scozzafava said.

"We're trying to bring it (the levy) in at 3 percent. Retirement (spending) is the big issue this year. It's up $35,000, which is a big hit in one year."

RAISES
He said all town employees and two full-time elected officials — the town clerk and highway superintendent — will get 3-percent salary hikes.

Other elected officials will not get raises.

SAVINGS
The town thinks it can save 15 to 20 percent on its liability insurance by going to requests for proposals, Scozzafava said. Insurance costs would have been about $74,000 otherwise, he said.

There was also some savings from lower fuel costs, he said.

COSTS
Workers' compensation costs have gone up $8,000 in the budget.

The town is getting less interest income on certificates of deposit, Scozzafava said, because of the weak economy, and mortgage-tax income is down about $10,000 because of fewer home sales.

The town added $6,500 to the Bulwagga Bay Town Campground budget for equipment and $1,500 for a golf cart to be used by the manager to get around the site.

"The campsite is self-supporting," Scozzafava said. "The campsite (profit) actually helps us reduce the levy."

SALES TAX
Next year will be the first year the town has received one-quarter percent sales-tax sharing payments from Essex County, and Moriah is due to get about $90,000.

"What saved us in this budget was the one-quarter percent from the county," Scozzafava said. "If we didn't have that, there would be some tough cutting going on in this budget."

WATER, SEWER, FIRE
Water rates will go up $10 a year, from $270 to $280.

Sewer rates will stay the same, at $420 a year.

The budget for Fire District No. 1, Moriah Fire Department, is down 2 percent, from $100,000 to $98,000. The tax levy for that district is up 5 percent, though, from $65,350 to $68,650.

For Fire District No. 2, Mineville-Witherbee Fire Department, the budget went from $80,000 to $81,000, a 1-percent increase. The levy there is up 1 percent, from $56,000 to $56,500.

"Everyone is trying to hold the line," Scozzafava said. "The fire-district budgets are part of the town budget, but are set by a Board of Fire Commissioners. We just collect the money."

ASSESSMENTS UP
The town tax base is up 11 percent, he said, from $185 million to $206 million. The town had a revaluation last year by its Board of Assessors that increased most assessments.

He said 34 percent of the land in Moriah is tax exempt.

TAX RATES
The tax rate for town residents outside the Village of Port Henry will be $8.57 per $1,000 of assessment, while village residents will pay $6.75. Those rates are $8.98 and $6.89 this year.

The tax rate in Fire District 1 (Moriah) will be $1.23, down from $1.31 this year. In Fire District 2 (Mineville-Witherbee), the rate will be 96 cents, from $1.05 currently. Those outside the fire districts will pay 92 cents for fire protection, down from $1.02.

In Water District 1, the tax rate will be $1.79 per $1,000 of assessment, down from $1.93; and in Water District 2, the rate will be $2.30, the same as this year.

Someone with a home assessed at $100,000 would pay a total of $1,159 in town taxes in fire and water districts 1 in 2010. In water and fire districts 2, they'd pay $1,183.

Village of Port Henry residents with a $100,000 house would pay $675 in town taxes next year, down from $689 this year, if their assessment remained the same, although most property values have increased.

E-mail Lohr McKinstry at: lmckinstry@pressrepublican.com