FONDA - A divided Montgomery County Board of Supervisors approved the county's 2010 budget Tuesday, drawing on more of the fund balance than previously proposed and decreasing the tax levy more than 4 percent.

To balance the $96 million budget and avoid raising taxes countywide, supervisors passed a resolution to use about half of the county's $15 million fund balance - about $1.5 million more than in the originally proposed budget.

That drew criticism from many supervisors and County Treasurer and Budget Officer Shawn J. Bowerman, who called it a risky financial move.

"They're shortening the time of the inevitable," Bowerman said of the supervisors who pushed for using more of the fund balance. The budget was passed by a minority of supervisors, mostly from the city of Amsterdam, whose votes are more powerful under the county's weighted voting system.

The 2010 budget calls for a tax levy of $24 million, about $1 million less than this year's levy. The tax levy decreased from $26 million in 2008 to roughly $25 million in 2009, a 2.88 percent decrease.

City of Amsterdam residents will see their property taxes increase 0.2 percent next year, while Mohawk residents will see a 1.5 percent increase. The other municipalities will see no tax increases.

Considering the economic conditions, including a 10 percent drop in third-quarter sales-tax revenue, some supervisors said they don't think the fund balance will replenish itself soon.

"We're in dangerous territory," said Root Supervisor John Thayer, who voted against the budget. "We're not going to get this back next year. I don't see any industry or new jobs coming. We're just going to be strapping the people who are already here."

Thayer said if county leaders want to cut taxes, they should do it through spending cuts, not drawing on reserve funds.

"Cut 5 percent off the top of every department so that everybody feels it," he said.

Supervisors have debated a number of proposed payroll cuts.

"We suggested cuts," said St. Johnsville Supervisor Dominic Stagliano, who voted against the budget. "But all the cuts were put back in. In 2008, we spent more than we took in. The problem is that we need $8 million in sales tax to make everyone whole. When we start depleting the fund balance, we start lowering the bond value," Stagliano said.

Charleston Supervisor Shayne T. Walters opposed the budget and cautioned strongly about drawing too much from the fund balance.

"Everybody is going to run around this room giddy, not looking ahead to next year," Walters said. "It's absolutely foolish. Take the hit for what it costs to run the county."

Root Councilwoman Evelyn Lindley was among those who attended the public budget hearing before the county board meeting.

"I've been working on budgets since 1992," Lindley said. "I'm not crazy about taking from the fund balance. The day will come where we will all pay the price. With the way the state is making cuts, nothing is secure anymore."

Amanda Whistle covers Montgomery County news. She can be reached at montco@leaderherald.com.