FY 2007 TOWN BUDGET

There are a number of areas in the 2006 fiscal year that expenditures and yearend projections exceeded anticipated allocations. We increased the 2006 budget by 30% associated with all items related to petroleum including Gasoline & Diesel fuel for our Highway Department & Building Department. This increase was not sufficient to keep pace with the escalating costs. The increased cost of asphalt, salt and other highway department expenditures relating to the cost of the product or the delivery of the product are all related to increases in petroleum expenditures. Utility costs (gas & electricity) have escalated dramatically for all Town owned buildings. Litigation fees also exceeded expectations; this has been mainly driven by the necessity to defend the Town against the lawsuit by the County. The 2006 Budget anticipated an increase of 12% for health care costs for employees; however during the first six months of 2006, Excellus raised their rates by 34% and Preferred Care by 16%. Restructuring our Employee Health Services in July of this year has generated significant savings over the last six months of 2006. There were unanticipated costs associated with the Feasibility Study & Map Plan & Report for the proposed Water District, Library Survey & three furnaces for the library. Each of these items created unanticipated drain on our cash balances.

Additionally the increases in the Veterans Exemption and the purchase of the Dreisbach Property have added to the Tax Rate for 2007.

The Town of Mendon continues to have the one of the lowest tax rates in Monroe County. I believe that the majority of our Department heads were aware of these pressures, and this Budget reflects some of the tough choices that had to be made.

The Tentative 2007 Town Budget of $3,899,815 is an increase in the budget from FY 2006 of $140,994.00 or 3.8% more than last years budget. In order to maintain healthy fund balances the 2007 FY budget will increase the Tax Rate for Village residents from $1.18 per $1000.00 assessed Value to $1.2974 per $1000.00. For residents of the Town outside the village the Tax Rate increase will go from $1.96 per $1000.00 assessed value to $2.1553 per $1000.00

The effect on the individual taxpayer in the Village of Honeoye Falls would be as follows:

A property owner of a house in the Village assessed at $150,000 in 2006 paid $177.00 A result of the FY2007 budget the property owner would pay $194.61.00 in Town Taxes or $17.61 more next year than this year.

An example of a property owner of a house in the Town outside the Village assessed at $150,000 in 2006 paid $294.00 A result of the FY2007 budget the property owner would pay $322.95 in Town Taxes, or $28.95 more next year than this year.