TOWN OF CLARENCE

SUPERVISOR'S COLUMN FOR OCTOBER 2008

Fiscally Conservative Town Budgeting

Whether it is the Wall Street meltdown or the New York State budget, we face turbulent financial waters. However, my 2009 Tentative Budget continues our conservative course that has enabled us to not become addicted to growth to balance our budgets. We continue to keep spending within inflation while preparing for the uncertain fiscal future.

Under my budget, the General Fund tax rate ($1.062854/ $1,000.00 Assessed Value (AV)) decreases slightly from 2008 ($1.063187/$1,000.00 AV), while Total Town Appropriations are estimated to increase slightly. This increase is essentially a cost of living increase, even though we continue to grow as a Town. Since last year, the Consumer Price Index (CPI) increased 5.6 percent and the Municipal Cost Index (MCI) (measure of inflation for muncipalities) increased 8.1 percent. Under my budget, our taxable assessed value increased 3.27 percent (approximately half of that related to new construction), general fund appropriations increase 2.81 percent, and total appropriations increase 3.64 percent. In sum, we are holding the line on spending below inflation while demand for services continues to increase.

Since I first was sworn in as an elected official, the Town's growth continues. I believe that this growth has become "smarter" as a result of the change in our land use planning that requires us to look at fiscal impacts. While the CPI increased 23.94 percent and MCI increased 33.77 percent, general fund appropriations increased 26.74 percent and town total appropriations increased 25.50 percent. Taxable assessed values increased 57.49 percent with 47.45 percent of that increase related to new construction - our Town values have increased by 27.28 percent due solely to new construction. Put simply, our long term growth exceeds inflation that either exceeds or is approximately equal to new construction values that in turn exceed overall Town spending:

Growth > Inflation = New Construction > Town Spending

Although we are entering dangerous financial times, our budgetary future can remain bright by properly planning. One practice we continue this year is to perform multi-year budgeting, which enables us to look at the long term impact of our financial decisions. We should continue to use multi-year budgeting and implement other good government best practices, such as outcome based budgeting and Lean Six Sigma. We are implementing outcome based budgeting this year and Lean Six Sigma next year with our Animal Control, Building, Planning, Parks, and Youth Departments. Hopefully, outcome based budgeting will ensure that we spend public monies in the correct areas and Lean Six Sigma will provide an estimated net return of investment within the first year of almost 50 percent of our training dollars.

The next step is for the entire Town Board to review my Tentative Budget, for the Town Board to create a Preliminary Budget, and for the Town Board to hold a public hearing on Wednesday, November 5, 2008, to accept public comment.