10/5/07 - County tax rate may drop for 2008

(As published by the Cortland Standard, Corey Preston reporting)

Buoyed by a positive independent audit of Cortland County’s 2006 finances, county officials are cautiously optimistic the county’s overall tax levy will be lowered in 2008.

Independent auditor Rick McNeilly reported to the county Budget and Finance Committee in September that by increasing its unreserved fund balance to approximately $12.7 million, the county has put itself on firm financial footing in regard to cash flow and its bond rating.

In the final published audit report released this week, McNeilly writes that the fund balance is strong enough that it can be maintained in the future at its current level “with cautious optimism for use.”

The audit report also states that both County Auditor Dennis Whitt and County Administrator Scott Schrader anticipate a reduction in real property tax rates.

“We’ll know more once we get through the budget process, but conservatively, I’m optimistic we might have a tax savings,” said Legislature Chairman Marilyn Brown (D-8th Ward). “We’re really in solid financial shape, I think we should pass some of that back to the taxpayers.”

Schrader, who is in the process of preparing a tentative budget for 2008, could not be reached for comment.

Because of the county’s strong fund balance, Whitt said that he thought the overall tax rate could be reduced by 3 to 4 percent for 2008.

The Legislature passed a resolution in 2004 announcing its intent to keep the county’s fund balance at approximately 10 percent of the overall budget, Whitt said.

In years past, particularly in the early part of this decade, the county spent the bulk of its fund balance to keep taxes down, he said, which led to much higher tax increases the following year.

“Of course you don’t want to empty the bank, but we’re at a point now where we’ve got a comfortable cash flow, and we can start making judgments about taxes that are prudent and aren’t going to eventually wind up costing the taxpayers,” Whitt said.

The 2007 budget was $108 million, with an overall tax rate of $14.91 per $1,000 of assessed property value, and an overall tax levy, the amount the county needs to raise through local property taxes, of $24.9 million.

The 2007 budget included a tax rate increase of 3.4 percent.

Just in time - for Election Season!!! :-)