Continuing the previous blog post as to why, how and where village recurring-charge patterns obtain too little oversight…
When operating as intended, the forces pushing for increased funding encounter equally strong forces seeking to minimize the cost-burdens on tax payers.
Department heads know the costs associated with running their departments and also know the costs associated with replacing or upgrading equipment and the changing supply-costs, for example. A good department head lobbies for generous funding requests to keep her/his department as strong and reliable as possible. But increases in funding requests should encounter equally strong advocates for fiscal prudence.
Each funding-increase request must be examined and evaluated on a case by case basis. Currently those discussions occur between the Mayor, Administrator, Treasurer and each Department head: neither the public nor the trustees are privy to the reasons that department heads request particular funding amounts nor to the reasoning behind whether to grant, postpone or decline requests. When I ask why, the usual response has been: “This is the Mayor’s budget”. This lack of transparency is both unfortunate and atypical. Unfortunate because trustees and residents are the primary defenders of tax-payers’ interests. It is also atypical, as local news sources announce the open budget discussion dates with department heads for surrounding municipalities.
While increases in funding requests are examined, discussed, and decided upon by the Mayor and Administrator, level funding requests are not likewise scrutinized. This is also unfortunate as costs of doing business sometimes drop, as when work is automated and employee numbers decline. A non-reduction in the appropriation request could then result in a net positive cash balance at the end of the fiscal year. This value, the total amount appropriated for a department at the start of a fiscal year minus the actual amount spent by the department at year’s end, is reported in the external audit report (called the Financial Statement, available from the village clerk). The Financial Statement reports of the past few years show that some Fund Balances do grow year after year and now have a total fund balances in excess of their entire annual operating budgets.
One may argue that positive fund balances are the “money in the bank” that buffer the village against the cost of future infrastructure projects. But these excess funds can also be argued to place an unnecessary burden on tax payers. The New York Office of the State Comptroller suggests that no fund should grow by more than 10% of its operating budget annually, and also suggests the accrued fund balances be tied to objectives listed in either 10 year Comprehensive Plan or other fiscal goal document.
What constitutes a successful fiscal year? If books balance and expenses do not exceed appropriated amounts so no additional debt is incurred, it is considered a successful fiscal year. But that ought not to be enough. How much of our revenue is spent on debt payments? How high should we let that share go? Our village property tax rate, at over $18.00 per thousand dollars of property value, is nearly triple the state average of $6.65 per thousand dollars. Is that necessary or adviseable?
NY’s longtime state comptroller, Thomas DiNapoli, says “New Yorkers pay among the highest taxes in the country. It’s important to have transparency so citizens are empowered with information they need to hold their elected officials accountable.” I am an elected official and have tried to understand, explain and coax budget matters toward greater transparency and clarity and fiscal responsibility. It takes a village however. I understand the appeal of enacting and accomplishing without a great deal of arguing and possibly heated discussions. But it also convenient that a lack of discussion obscures questionable fiscal policies. It is a struggle to overcome the forces that aim to obscure and befuddle, but NYS has the nation’s strongest and best FOIL (freedom of information laws) permitting access to any and every financial decision made by any municipal employee or elected official. With effort, might we regain some control over the processes that govern our lives?
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