Edgewood is no longer spending beyond its means, according to town clerk Juan Torres.
The state’s department of Finance and Administration has dinged the town for spending its savings, but with approval of an environmental gross receipts tax, which was effective at the beginning of the year, and a property tax, its current budget’s expenditures do not exceed revenue, Torres said.
The additional gross receipts tax will cut down the town’s subsidy on wastewater treatment plant from about $400,00 a year to about $100,000 a year, Torres said.
Implementation of a property tax, which will take effect in January, will mean about $50 in revenue to Edgewood for each $50,000 in property valuation by the county assessor.
That will mean the town can cut its subsidy of the road department in half from nearly $600,000 a year, Torres said.
“Doing those two things, along with tightening our belts, is what helped us get our revenue stream under control and making sure we are not depleting our general fund or our reserves,” Torres said.
“A lot of the credit needs to go to the mayor and governing body for making those tough calls,” Torres said, adding that the change “needed to be made to get the town moving in the right direction,” toward fiscal responsibility.
Torres said when he came into the job, Edgewood’s budget was exceeding its revenue by about $120,000 a year, depleting its savings. “The problem Edgewood had is year after year, we were exceeding revenue,” he said. “Now we’re back in balance, and not planning to spend more than we bring in.”