Taxpayer alert - Town financial results for 2008 - surplus of $647,000!
Submitted by cnarbey on Tue, 05/12/2009 - 12:05pm
The Town has now posted on its website its Annual Report to the NY State Comptroller for 2008 (see http://www.townofkentny.gov/PDF/Finance/annualfinancialreport2008.pdf).
An overall surplus of $647,054 (more revenue than expenditure) was achieved.
This adds to the Town's financial reserves, on top of a surplus of $1,201,464 in 2007. As reported earlier, the brief financial summary of the First Quarter of 2009 showed an estimated (by me) surplus of $344,000.
The Town had $5,216,007 in cash and bank deposits at the end of 2008.
Taxpayers should be interested in why the Town is building up these surpluses, as the majority of its revenue comes from property taxes.
In the details of the overall surplus for 2008, the General Fund (pays for everything except Highway Dept. and Capital Assets) had a surplus in 2008 of $1,269,662, compared to a 2007 surplus of $1,176,470 (in 2 years, that's $2.3 million of your taxes that were collected but not spent). Offsetting this, the Highway Dept. had a deficit in 2008 of $315,451, compared to a deficit in 2007 of $148,005 (that's $463,000 more expenditures than was collected from your property taxes over 2 years).
These financial results certainly mean that the Town's finances are in very good shape. The hang-over from the excessive cost overruns to build the Town Center has largely been cured.
So, why is the Town government piling up cash? My personal opinion (you don't have to accept this) is that the Town is preparing to pay damages in the Kent Manor lawsuit, should the justice system ever award damages to the developer/plaintiff (there is no certainty of that). Whatever the reason, it's taxpayers' money and I believe that they should be given an explanation.
Town of Kent Financial Condition
I thank Cliff Narbey for calling the reported 2008 surplus to our attention. He brings up an interesting question. Whatever the motive, an accumulated surplus gives some evidence of improved fiscal management and I applaud the Board for that. It may be, as Cliff suggests, that the acccumulation is motivated by caution in the ongoing Kent Manor litigation. Another possibility is that the surplus is being accumulated in anticipation of decreased revenues...a realistic response to the current national economic condition. I hope that the Board will not vote themselves a raise this year as they did in 2008...it would be an egregious signal to the unemployed of our town and county.
It will be interesting to note if, after the Kent Manor litigation has been concluded, what the elected officials will do with the surplus. Wouldn't it be nice if they gave it back to the folks whose money it is?
Cliff thanks for bringing
Cliff thanks for bringing this information to light. Its curious to me why the board has not made mention of this considering it would be a great accomplishment to announce in this election year. I too would like to know the plans for these surplusses, flowback to the taxpayer would be an excellent use in my opinion!