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365.2004 RESOLUTION RESCINDING RESOLUTION NO.: 342.2003 AND REQUESTING AND AUTHORIZING WARREN COUNTY TO RETAIN SALES TAX REVENUES AND OFFSET PROPERTY TAXES RESOLUTION NO.: 365, 2004 INTRODUCED BY: Mr. Daniel Stec WHO MOVED ITS ADOPTION SECONDED BY : Mr. Tim Brewer WHEREAS, Warren County receives sales tax revenues resulting from sales transactions taking place within the County and a substantial portion of such transactions occur within the Town of Queensbury, and WHEREAS, portions of the Warren County sales tax revenues are annually allocated and paid to each one of Warren County’s municipalities and annual sales tax revenues allocated to the Town of Queensbury is currently in the range of $6.7 million, and WHEREAS, at the end of 2003, the Town of Queensbury had an audited, total, end-of- year fund balance for general purposes totaling approximately $11.4 million, and WHEREAS, the Town of Queensbury’s gross sales tax revenue for the first and second quarters of 2004 were at a record high, and WHEREAS, the Town’s audited, total, end-of-year fund balance from the years 1989 through 1996 was steady between $1.4 million and $2.6 million, and WHEREAS, the Town’s audited, total, end-of-year fund balance from the years 1997 through 2003 steadily climbed from $2.6 million to nearly $11.4 million at the end of 2003, and WHEREAS, in 2001 the Town decided to eliminate the Town’s property tax which generated approximately $325,000 annually and the 2000 audited, total, end-of-year fund balance was nearly $7.3 million, and WHEREAS, a $1 million rebate was first proposed in 2002 when the 2001 audited, total end-of-year fund balance was $9.4 million and was defeated in a 2-1-1-1 vote, and WHEREAS, in 2003, a $1 million rebate was again proposed and defeated in a 2-3 vote, and the audited, total, end-of-year fund balance in 2002 was $10.7 million, and WHEREAS, the $375,000 rebate was passed in 2003 on a vote of 5-0, and the audited, total, end-of-year fund balance in 2003 was nearly $11.4 million, and WHEREAS, the Town of Queensbury has underestimated sales tax revenues each year since 1992, and WHEREAS, since 1998, the average amount that the Town of Queensbury has under- budgeted for sales tax revenue has exceeded an average of $1 million annually, and WHEREAS, Chapter 528 of the Laws of 2000 (in Town Law §107) provides that towns may adopt a budget which includes a “reasonable amount” of unappropriated fund balances, and WHEREAS, by Resolution No.: 342.2003 and in accordance with New York State Tax Law §1262, the Town Board authorized Warren County to retain $375,000 of Warren County sales tax revenues allocated to the Town in 2004 to apply such revenues to reduce 2004 County property taxes on real property within the Town in order to offset County taxes on Queensbury properties, and WHEREAS, such Resolution No.: 342.2003 also authorized the reduction of County property taxes on real property within the Town for each year thereafter until rescinded by Town Board Resolution, and 2 WHEREAS, the Town Board has determined that the current total fund balance again exceeds the reasonable amount needed for revenue stabilization, cash flow, contingencies, and contemplated capital projects, and the Town Board wishes to undertake a greater yet affordable and sustainable reduction of county taxes on Queensbury property, and WHEREAS, this issue has been examined and debated for the past three years, and WHEREAS, the Town Board feels that a larger amount for 2005 is warranted because the Town taxpayers that generated the surplus over the last several years should benefit from a larger initial rebate, and WHEREAS, the Town Board wishes to rescind Resolution No.: 342.2003 so that the Town Board may amend the amount of sales tax revenues to be retained by Warren County for 2005, NOW, THEREFORE, BE IT RESOLVED, that the Queensbury Town Board hereby rescind Resolution No.: 342.2003, and BE IT FURTHER, RESOLVED, that the Town Board authorizes Warren County to retain $1,000,000 of Warren County sales tax revenues allocated to the Town of Queensbury in 2005 and apply such revenues to reduce the annual County property taxes on real property in the Town of Queensbury, and BE IT FURTHER, 3 RESOLVED, that the Town Board requests that Warren County evenly redistribute the annual amount(s) to be retained, thereby retaining the Town’s sales tax rebate on a quarterly basis, and BE IT FURTHER, RESOLVED, that the Town Board further authorizes and directs the Town Clerk to file a certified copy of this Resolution with Warren County’s Chief Fiscal Officer by mailing such st Resolution by registered or certified mail before September 1, 2004 in order to take effect for the calendar year 2005, and BE IT FURTHER, RESOLVED, that the authorization provided for in this Resolution shall be effective for each year until rescinded by Town Board Resolution, and BE IT FURTHER, RESOLVED, that the Town Board further authorizes and directs the Town Clerk, Town Supervisor and/or Town Budget Officer to provide any other required documentation to Warren st County prior to September 1, 2004 and take any and all other action necessary to effectuate all terms of this Resolution. th Duly adopted this 26 day of July, 2004, by the following vote: AYES : Mr. Brewer, Mr. Stec, Mr. Boor, Mr. Turner NOES : None ABSENT: None ABSTAIN:Mr. Strough 4