BY ADAM ATKINSON
North Country This Week

POTSDAM -- There were no comments voiced at a public hearing on the Village of Potsdam budget held via the Zoom cloud conference platform Monday, April 7.

The Board of Trustees immediately held a second hearing on a resolution to allow them to override the state tax cap should the need arise and no comments were voiced at that session either.

The budget, which will cover the 2020-21 fiscal year starting June 1, features no tax rate increases over the current year.

During the hearing, village officials praised the 2020-21 fiscal plan, but they did voice some concerns over how the expected drop in sales tax revenues to municipalities around the state stemming from the COVID-19 pandemic shutdown ordered by New York and other states could effect Potsdam.

The government order that all non-essential workers must stay home during the health crisis has shut down large sectors of the economy resulting in a huge spike in unemployment rates, and business closures, including several in the downtown Potsdam business district.

The result is an overall plummet in sales tax collection by the county and state, which means less doled out to towns and villages which get a share of the pie to help fund operating costs and programs.

"What concerns me is the sales tax (revenue)," said Trustee Alexandra Wilke. "That's a completely different projection than a year ago."

"The Governor said mid year there is going to be an adjustment anyway up or down so we'll have to wait for that as well. We'll keep an eye on it," said Village Mayor Ron Tishler. "But as of right now there is no tax increase. There is no water increase. No sewer increase. No garbage increase. So everything is a level playing field. Knock on wood, hopefully it stays that way."

"And thankfully our department heads are really really really good," added Village Clerk Lori Queor.

"Well everyone has done a great job. All the department heads. And of course Lori (Queor, village clerk) has done an outstanding job with the budget. Lot of numbers there, and I give her all the kudos in the world. And a lot of input from the department heads and also from the village board. We've had some good ideas and some good input," said Tishler.

Queor said the village currently has a "decent" sized fund balance of a little over $2 million. "So its good that a few years ago when we were in a bad spot we've really dug our way out of that. And, if we were in that spot now that we were in a few years ago… I don't know where we would be. But luckily we've worked hard to get us to a good spot right now. So if the sales tax does drop significantly we are still kind of okay because we have that savings," Queor said.

The 2020-21 fiscal plan, available online at https://bit.ly/3bN9xDP, calls for total appropriations of $7,586,203. That will be covered by $4,170,946 in taxes and $3,408,932 in non-property taxes and $6,325 from the existing fund balance.

The total village budget can be further broken down into general fund, trash, hydroelectric and recreation budgets. Hydroelectric and recreation are to be covered by non-tax revenues.

Total general fund appropriations will be $6,436,859, a -0.1 percent or $8,018 decrease from the 2020 budget. The general fund will be covered by $3,958,296 in property taxes, a 0.8 percent increase from the 2020 levy of $3,780,012, and $2,478,563 in non-property tax estimated revenues.

The trash budget calls for $234,325 in appropriations to be covered by $212,650 in property taxes, $15,350 in non-property tax revenues and $6,325 from the fund balance.

For the general fund, the tax rate per $1,000 of assessed property value will be $18.28753, compared to $18,28746 for the current tax rate. The trash budget tax rate will be $13.66249 compared to $13.66294 in the current year. Both represent a zero percent tax increase on assessed property values for village residents.

Residents can submit written comments on the budget and the tax cap override to the village clerk at lqueor@vi.potsdam.ny.us or send them by mail to Village of Potsdam, Village Clerk, P.O. Box 5168, Potsdam 13676.

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