North Elba Budget Officer and Human Resource Coordinator Catherine Edman said Wednesday that although the general fund tax rate is expected to decrease in 2022, from 63 cents per $1,000 in assessed value to 50 cents per $1,000, it’s rare that a North Elba resident has one tax line on their bill.

The general fund tax rate pays for much of the town’s operations — things like employee pay and services. If the budget is adopted as is, a person with a $300,000 home would pay about $150 toward general fund operations next year. This year, that number was closer to $189.

Property value assessments have risen in the last year, which is another typical trend, according to Edman. The assessed value of taxable property in town is expected to increase by 5.45%, from more than $2.2 billion this year to more than $2.4 billion next year.

General fund spending is projected to increase from $9,666,540 this year to $9,826,309 next year. Every taxpayer in North Elba pays taxes for the general fund. Edman said that the general fund spending is expected to increase for 2022 due to increased costs for services and maintenance across the board. She said among other factors, there’s a 9% increase in health insurance costs, an increase in gas and diesel costs due to inflation, more expensive equipment repairs and maintenance due to the economy, and a majority of town employees will get between a 3% to 4% raise next year.

Edman said the general tax fund rate decrease is made possible with the help of expected short-term rental fees, increased transfer station revenue, an increase in franchise fees, and increased revenue from building permits, based on this year’s history and multiple ongoing and upcoming renovation and housing projects. Edman said that the town was able to decrease the general fund tax rate — despite the increased spending — because they appropriated $205,000 from reserves to stay under the town’s tax cap.

If the budget is adopted as is, the town would levy — or collect — a total of $4,776,520 in property taxes, a tax levy increase of $125,176, or 2.69%, from last year. The state tax cap set for North Elba is 2.69% for 2022. The town’s budgets have either fallen below, or met, the tax cap since it was first implemented by the state in 2012.

The park district, the Ray Brook water district and the highway district are funded by select parts of North Elba. Edman said that residents who live outside of Saranac Lake pay taxes to the park district, residents in the town outside of the villages of Saranac Lake and Lake Placid pay taxes for the highway fund, and the water district is funded by Ray Brook residents and anyone else who lives within the bounds of the water district.

Tax rates for the highway district, park district and Ray Brook water district are expected to rise in 2022.

The Ray Brook water district tax rate would see a sharp rise of 128%, from 18 cents per $1,000 in assessed value this year to 41 cents next year. Edman said that increase directly relates to the construction of a new water tank in the district, which is expected to begin next spring. The town received funding for that project from the Environmental Facilities Corporation in the form of a partial grant and partial loan. Edman said that provided the project uses the full funding, the water district will be paying back an $885,000 loan. She said that won’t need to be paid for a while, but tax rates in the water district will stay high over the next couple of years as the district gets the project going.

The highway district tax rate would increase by 13 cents, from 62 cents this year to 72 cents next year, which Edman attributed to ongoing paving work in preparation for the 2023 World University Games. The park district rate would increase by 12%, from 69 cents this year to 77 cents next year, because the town agreed to give $750,000 exclusively from its park district funds to the state Olympic Regional Development Authority. That funding was split between the park district and the general fund in 2021, but Edman said that the park district usually takes on that funding alone.

Fire protection districts 1 and 3 have lower proposed tax rates, down 20% from this year’s rate of 45 cents per $1,000 in assessed value to 36 cents. Fire protection district 2 has a proposed decrease of about 13%, from 79 cents per $1,000 this year to 69 cents next year.

The budget also proposes raises for the town’s elected officials. The superintendent would receive a raise of $908, from $36,288 this year to $37,196 next year; the highway superintendent would receive a pay increase of $5,363, from $64,092 this year to $69,455 next year; the town clerk would receive a raise of $2,128, from $53,164 this year to $55,292 next year; and the four town council members’ pay would go up by $200, from $7,935 this year to $8,135 next year.

The North Elba Town Council will hear public comment on the preliminary budget at 2:45 p.m. today in the North Elba Town Hall.

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Correction: A previous version of this story incorrectly said the town planned to give $75,000 to the state Olympic Regional Development Authority; the town has budgeted $750,000 for ORDA. The News regrets the error.