ITHACA - The Tompkins County Legislature has taken the first step toward preparation of a 2009 Tompkins County budget, establishing a financial goal of a maximum tax levy increase in 2009 of three percent.  The three percent levy increase goal was approved by a vote of 11-4, with Legislators Martha Robertson, Greg Stevenson, Dooley Kiefer and Tyke Randall voting no.

A three percent increase in the tax levy (the total amount of property tax revenue needed to balance the budget) would carry with it a projected 11.2 percent decrease in the tax rate (the amount paid by taxpayers per thousand dollars assessed property value), a rate of $6.09 per thousand.  The tax rate would decrease because Tompkins County assessed property values, as documented in the 2008 revaluation, have increased by 16 percent compared to last year’s level.  Achieving the three percent goal will require a nearly $2 million decrease in locally controlled spending.  The Legislature also resolved to continue the process of stabilizing the level of tax levy change during 2009.  The resolution notes that the current rate of inflation is just under four percent.

A tax levy increase of 8.6 percent is projected to be required, were the County to maintain current efforts in 2009.  Primary factors affecting the budget are a decrease in state aid to the County of at least 2 percent (more that $800,000) and projected increases in public health and social services mandates, as well as increases in capital/debt service costs, salary/fringe benefits, and facilities expense.