VERMONTVILLE - The general fund of the town of Franklin's 2009 town budget is $472,078. This is $26,532, or 5.95 percent, more than last year.

The proposed property tax levy is $1,024,994, a 4.8 percent increase. The tax rate would be $7.50 per $1,000 of assessed value, almost a 5 percent increase over last year.

Town Budget Officer Dick Meagher said $100,000 is being taken from the highway department's fund balance and $100,000 from the general fund to avoid a further tax increase.

Meagher said a $7,245 increase in the assessor's budget is a major contributing factor. Another is a $7,200 increase in the cost of hospital insurance - 15 percent higher than last year.

Spending for the highway department is up to $1,062,928, an increase of 4.6 percent, or $46,781, from last year. Meagher said $30,000 more is being spent on road improvements, $9,000 more on health insurance due to climbing rates.

However, the department has saved $15,000 by turning a full-time laborer position into a part-time one, without benefits. Meagher also said the town will be getting $27,000 more this year in plowing money from the county, and $24,000 more in consolidated highway aid. However, much of this money will be eaten up by the rising costs of fuel, sand, salt and parts. The cost of salt is up especially, having tripled since last year.

"This board is not sitting back and relaxing," said town Councilman Walt Kretser. "We are trying to cut costs. It is difficult when these large items are so costly."

Franklin will be paying about $28,300 for fire protection from Saranac Lake, approximately $900 more than last year. It will be paying the Bloomingdale Volunteer Fire Department $41,700, a $5,000 increase.

Income

Exclusive of property taxes, the town's general income is projected to drop by $8,000. One major factor, according to Meagher, is a drop in demand for building permits.

"The economy is the main cause in that situation," he said. "We're not seeing as much construction as in the past."

Also, income from interest on the town's bank accounts has fallen by $6,000. These two drops are offset a little by a $2,000 increase in income from fines and forfeited bail.

Town Supervisor Mary Ellen Keith read off a list of properties that are exempt from property taxes. The town has $12,420,846 in property tax exemptions annually. The largest chunk, about $5 million worth of property, is forested and reforested land exempt under the Fisher Act. Then, there is $832,200 for campgrounds, $478,000 for state land, $351,000 for town land, $394,000 for agricultural land and about $1.35 million for for veterans.

"Somebody picks up these," Keith said.

This list of exemptions is now attached to all budgets in the state, due to a measure pushed by state Sen. Betty Little.

"God bless the veterans," Meagher said. "They deserve theirs. But there are so many (other exemptions)."

Meagher suggested working out payment-in-lieu-of-taxes deals with entities such as schools and churches rather than tax exemptions.

Public reaction

The budget was not well received by those who attended the hearing. After the meeting, a poll was held to see whether they supported the budget. Three out of the five members of the public in attendance voted "no," one said "yes," and one was undecided.

David Woodson of Vermontville said most other towns in this area are increasing spending by 3.5 percent or less in 2009, and questioned why Franklin is raising it more than 5 percent. He mentioned a number of areas where he thought money could be saved and said he often sees the lights left on at the town garage at night, when nobody's there.

"It's just a waste of money," Woodson said. "I don't leave the lights on at my house when we're not there."

Frank Karl of Onchiota said the town should find more places to cut.

"It's criminal at this stage of the economy to be talking about a 6 percent or 5 percent (spending increase)," he said. He also said the proposed property tax increase will have a heavy effect on those least able to pay.

"I think there are terrible times," he said. "There are people who are borderline as to whether they can keep their homes."

Town Councilman Clifford Smalley said the town is trying to save the taxpayers' money, but the "double whammy" is hitting the town hard, making it difficult not to raise both spending and taxes.

"Our costs are going up; our income stream is dropping," he said.

"When you say income stream is down, that means you have to spend less," said Barbara Karl of Onchiota. "You don't have the money; therefore, you can't spend it. When we have less money, we have to spend less. We have no one to go and get it from."

The town board will vote to approve the budget or not at its next regular meeting at 7 p.m. Monday at the town hall in Vermontville

"We'll take another hard look at the areas you talked about and see if there is any way in the world anything can be done," Kretser said after the audience was polled.

Contact Nathan Brown at 891-2600 ext. 26 or nbrown@adirondackdailyenterprise.com.