The Village of Mineola Mayor and Board of Trustees held the annual budget hearing on Wednesday as residents were allowed to question the tentative village budget for the 2004-2005 fiscal year, which begins June 1 and ends May 31, 2005. The village must have a budget passed by May 31 and the hearing is part of the process. There are several factors that the mayor and board have had to deal with in putting together the budget, which are not within the village's control.

The 2004-2005 tentative budget calls for $18,846,436 in expenditures including $16,288,989 for the General Fund and $2,557,447 for the Water Fund. The amount of the budget to be raised by taxes is $11,204,531. By comparison, the 2003-2004 budget called for $10,586,703 to be raised by taxes.

The tax rate for the 2003-2004 budget called for $18.30 per $100 of assessed valuation while the tax rate for the tentative 2004-2005 budget calls for $19.75 per $100 of assessed valuation. The additional $1.45 per $100 of assessed valuation amounts to a 7.9 percent tax increase. If the tentative budget were to pass, average residents with their homes assessed at $5,500 with no tax exemption could expect to pay an increase of $79.75.

According to Mineola Mayor Jack M. Martins, there are a number of pressures that are affecting this upcoming fiscal year's budget. In formulating the budget, the mayor, board and department heads have had to deal with some increasing costs that are not within the village's control.

Among some of the pressures affecting this year's budget are an increase in solid waste disposal fees for garbage disposal by $250,000; salary increases led to a $200,000 increase in the budget; health insurance costs increased the budget by $200,000; loss of assessed valuation (tax revenues the village had, but will not have in the 2004-2005 fiscal year) amounted to a $200,000 increase in the budget. The village has also had an increase in insurance costs of $50,000.

Based on the village's tax base, every $100,000 increase in the budget translates to a 1 percent tax increase. The pressures the mayor referred to amounts to 9 percent tax increase alone. "At that point, we have to start looking at cutting back or alternative revenue sources," Mayor Martins said.

In order to increase revenues, the board will review fees having to do with building permits, pay phone permits, plumbing licenses and taxi owners licenses. The mayor and the board have already taken steps to increase revenues such as increased parking meter fees and certain fines.

The mayor said the village was able to get that 9 percent tax increase that would have come as a result of the pressures and get it down to 4.1 percent. However, the mayor is preparing the village to be hit with another expense that is out of the village's control.

Like other municipalities, the Village of Mineola is preparing for an increase in its contribution to the New York State pension system. According to the mayor, there are competing bills. If the one proposed by State Comptroller Alan Hevesi was to pass, the village would have to contribute an additional $380,000 (a 3.8 percent tax increase to residents of the village). "It's a state mandated item. There's nothing we can do about it. We are obligated to meet it and to pay it," Mayor Martins said.

Another proposal from Governor George Pataki would cap any increase at 2 percent, which would increase the village's taxes by 1 or 1.5 percent.

However, since it is unknown which proposal will ultimately be adopted, the village is preparing for the worst case scenario, which is the additional $380,000 that brings the tax increase in the village's tentative 2004-2005 budget to 7.9 percent.

The mayor said he and the board have gone through the budget carefully and would welcome any suggestions on how the village can either cut spending or raise revenues. "Taxes affect all of us. It's in everyone's interest to keep these taxes as low as possible," Mayor Martins said.

In considering possible cuts to the budget, Mayor Martins believes the village should maintain the excellent service the village enjoys and residents deserve. "I think there are certain things that we, as Mineola residents, expect and should expect and so there are certain items we cannot cut and certainly wouldn't endorse cutting, but I'm certainly open to any suggestions anyone has," Mayor Martins said.

Deputy Mayor Larry Werther said the mayor and the department heads have done an excellent job in putting together a budget with pressures that dictated a 9 percent tax increase down to 4.1 percent (not including the increase in the state pension fund contribution).

"We worked diligently on this budget, cutting where we could. The fact is that people like living in Mineola because of the services we offer. We've gone through this budget and we haven't cut any services and we do have some fine services compared to a lot of the municipalities around us," said Trustee Lou Santosus.

The budget must be passed by May 31, 2004 and will go into effect on June 1.