New Hartford reserve fund back in black

Tyksinski: Cuts this year helping right finances

By ROBERT BRAUCHLE

Posted Dec 16, 2010 @ 07:49 PM

NEW HARTFORD —

The town’s reserve fund that was in a deep deficit at this point last year is now in the black again, according to Town Supervisor Patrick Tyksinski.

Last year, Tyksinski revealed the fund was $356,000 in the red after reaching a high point of $2.8 million in 2006 because the previous administration didn't accurately project sales tax revenues and used the fund to pay outstanding bills.

Now, the fund sits at about $250,000, the supervisor said.

Tyksinski said cutting employees and consolidating services have helped right the town’s finances. Earlier this year, the town merged its dispatch center with Oneida County’s.

“We’ve stuck with the budget, and we’ve been able to maintain our cash flow better,” Tyksinski said. “It’s the little things, saving $90,000 here and $20,000 there, that really adds up. We should be OK through the end of the year.”

Municipalities generally keep 5 to 10 percent of their annual budget as a reserve for emergencies. With New Hartford’s 2011 budget of $4.3 million, it should have a reserve of about $219,350 to $438,000.

“By the end of 2011, I’d like to see that fund around $1 million,” said Tyksinski, whose goal is to have the fund at about $2 million by the end of his term in 2013.

Starving for cash at the end of 2009, the town also solicited Oneida County last year for an advance on its sales tax revenues. Without the extra $300,000 from the county, the town was not going to make payroll and cover other bills, officials said at the time.

Tyksinski said he would not make a similar request this year.

The supervisor said the town’s recent finances were helped by an inflated third quarter sales tax check from the county. That check was about $200,000 larger than projected and meant the town could see 4 percent more than the $4.9 million budgeted for revenue in 2010.

Going forward

So how does the town keep its books in the black in 2011?

Board member Christine Krupa said officials must find a way to decrease pension and health benefit costs.

“We have to find a plan that is less expensive than the one the town is providing now,” she said of the town’s health benefits. “We can’t spend money unless it’s absolutely necessary.”

Board member Rich Woodland Jr. said upcoming negotiations with the town’s three unions will be crucial to curbing costs.

“Whether the unions agree to some of the negotiations, because it’s a lot of give and take, that will dictate how 2011 goes,” Woodland said.

Donald Backman, a board member, said cuts in 2011 should come from job attrition – leaving positions open when employees retire or cutting those spots all together.

“Obviously, the cuts of 2010 are not over yet,” Backman said. “We’re still hoping to lighten the load of our costs.”

Backman said further cuts should be made from the highway and police departments.

“Just look for more shrinkage in 2011,” Backman said.

Town Board member David Reynolds could not be reached Thursday.