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North Haven Taxes Remain the Same

Posted on 23 April 2009

Crafting a village budget is a bit of a guessing game. The village must anticipate supplies needed for storms and snowfall, and the number of home sales, renovations and constructions expected. In this sour economy, the modest-sized North Haven Village prepared for the worst but hoped for the best when drafting their $1,213,117 budget for 2009-10.
The board’s projected revenue from mortgage tax is around $130,000. Village clerk Georgia Welch confirmed an 18 percent decrease in mortgage tax receipts from 2008-2009, compared to the year before. She based the 2009-2010 mortgage tax revenue projections on this reduced percentage.
The revenue accrued from building permits and licenses have also taken a significant hit. From 2007 to 2008, the village earned around $170,000 in revenues from the building department. Steering a financially conservative course, the village budgeted $100,000 last year in permits and licenses. Welch believes North Haven will fall short this year — the village has only received $73,000 in licenses and permits thus far, though this figure is subject to change, as the books will be closed by May 31. For 2009-2010, the village took a more severe look at the future and budgeted only $73,000 in licenses and building permits revenues.
“Everything is down … Will we flat line? Will it get worse? I don’t know. But I think we are pretty conservative,” said Welch of the revenue decreases during the village’s public hearing on the 2009-2010 budget on Wednesday, April 15.
The light at the end of North Haven’s financial tunnel is the village tax rate, which will remain the same as last year, .00050 per $1,000 of assessed valuation. In 2010, a village resident who owns a home with an assessed value of $1 million will pay approximately $503.80 in village taxes. Through a combination of a seven percent decrease in fire and ambulance contracts and by dipping into the fund balance by $218,751, the village was able to maintain this tax rate for residents.
“We can’t use that fund balance forever,” warned deputy mayor Jeffrey Sander.
“I don’t know how sustainable this is,” Welch later added, though she remarked that North Haven is faring far better than larger municipalities.
“A lot of places don’t have a healthy fund balance and have nothing to fall back on,” noted village mayor Laura Nolan.
One reason the village is in such good standing is because it has little to no debt. In the coming fiscal year, the village estimates it will spend only $6,473 on debt services. The village’s debt was incurred by the restoration of Cove’s End Lane many years ago. The debt is paid for by the property owners on Cove’s End Lane through an additional road tax.
Though the village has little in the way of borrowed money and a stable fund balance, Welch noted North Haven is limited in the ways it can procure income.
“We don’t have many avenues for revenue in our village as larger scale municipalities [get federal money],” Welch observed. “Hopefully the budget proposed will be enough, but we are only as good as the revenues we get.”
The public hearing was closed without public comment and the tentative 2009-2010 budget was passed unanimously.
Crafting a village budget is a bit of a guessing game. The village must anticipate supplies needed for storms and snowfall, and the number of home sales, renovations and constructions expected. In this sour economy, the modest-sized North Haven Village prepared for the worst but hoped for the best when drafting their $1,213,117 budget for 2009-10.
The board’s projected revenue from mortgage tax is around $130,000. Village clerk Georgia Welch confirmed an 18 percent decrease in mortgage tax receipts from 2008-2009, compared to the year before. She based the 2009-2010 mortgage tax revenue projections on this reduced percentage.
The revenue accrued from building permits and licenses have also taken a significant hit. From 2007 to 2008, the village earned around $170,000 in revenues from the building department. Steering a financially conservative course, the village budgeted $100,000 last year in permits and licenses. Welch believes North Haven will fall short this year — the village has only received $73,000 in licenses and permits thus far, though this figure is subject to change, as the books will be closed by May 31. For 2009-2010, the village took a more severe look at the future and budgeted only $73,000 in licenses and building permits revenues.
“Everything is down … Will we flat line? Will it get worse? I don’t know. But I think we are pretty conservative,” said Welch of the revenue decreases during the village’s public hearing on the 2009-2010 budget on Wednesday, April 15.
The light at the end of North Haven’s financial tunnel is the village tax rate, which will remain the same as last year, .00050 per $1,000 of assessed valuation. In 2010, a village resident who owns a home with an assessed value of $1 million will pay approximately $503.80 in village taxes. Through a combination of a seven percent decrease in fire and ambulance contracts and by dipping into the fund balance by $218,751, the village was able to maintain this tax rate for residents.
“We can’t use that fund balance forever,” warned deputy mayor Jeffrey Sander.
“I don’t know how sustainable this is,” Welch later added, though she remarked that North Haven is faring far better than larger municipalities.
“A lot of places don’t have a healthy fund balance and have nothing to fall back on,” noted village mayor Laura Nolan.
One reason the village is in such good standing is because it has little to no debt. In the coming fiscal year, the village estimates it will spend only $6,473 on debt services. The village’s debt was incurred by the restoration of Cove’s End Lane many years ago. The debt is paid for by the property owners on Cove’s End Lane through an additional road tax.
Though the village has little in the way of borrowed money and a stable fund balance, Welch noted North Haven is limited in the ways it can procure income.
“We don’t have many avenues for revenue in our village as larger scale municipalities [get federal money],” Welch observed. “Hopefully the budget proposed will be enough, but we are only as good as the revenues we get.”
The public hearing was closed without public comment and the tentative 2009-2010 budget was passed unanimously.

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