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JOHNSTOWN - The Fulton County Board of Supervisors on Monday adopted a $103 million county budget for 2010 carrying a 1.95 percent average property tax rate increase, although the board's top official would have preferred it lower.

Board Chairman Jack Callery of Johnstown said he was reluctantly voting for the spending plan. He had favored a plan with no average tax-rate increase or even a reduction for next year.

"I feel terrible that I have to vote yes on the budget," Callery told the board at the County Office Building. "There's no [more] money [to apply]."

He said the county is facing many financial hardships.

"We've been hammered by huge increases," Callery said. "It's a nightmare; it's scary."

The board chairman commended fellow supervisors and county department heads for making financial sacrifices.

The 19 supervisors present voted unanimously to adopt the budget, which Budget Director Alice Kuntzsch said carries a 1.95 percent average property-tax-rate increase for next year.

Gloversville 6th Ward Supervisor Richard Ottalagano was absent.

Kuntzsch said the average tax rate stands at $9.95 per $1,000 of assessed value. That is a 19-cent per $1,000 increase over this year's rate. The average owner of a $50,000 house in the county will have a $9.50 increase in his or her county tax bill. The owner of a $100,000 house will have a $19 increase.

Next year's county tax levy was set at $23.42 million.

Due to varying state equalization rates in the county, eight of the county's 12 cities and towns will see tax increases in 2010. Of the municipalities facing increases, Stratford and Caroga will have the largest, with tax-rate hikes greater than 20 percent.

The biggest tax-rate reduction will be in Ephratah, a 12.1 percent decrease.

Gloversville property owners will have a 2.5 percent county tax-rate increase, while city of Johnstown property owners will see their tax rate decrease by 1.6 percent.

"It's been a very difficult year," Callery said, acknowledging he had previously promised some people the county would try to hold the line on taxes.

In a separate resolution, the board decided to keep its members' salaries the same for 2010. Next year's board chairman's salary will remain at $10,400, and salaries for the other 19 members will remain at $7,900.

When county officials reviewed the tentative $104 million county budget for 2010 on Nov. 9, it had called for a 6.4 percent average property tax-rate hike. But the proposed tax levy was reduced through a series of cuts, including capital project cuts, and application of more than $4 million of the county's fund balance for 2010.

"We had to do what we had to do, and I think everybody worked hard," Northampton Supervisor Linda Kemper said.

Kemper also said she was concerned about how much the county took out of its fund balance to help balance the budget.

Key revenues projected to decrease next year include mortgage tax revenue, down 21 percent or $200,000; sales tax revenue, down 3 percent or $400,000; and lower interest rates on a declining fund balance, resulting in a 64 percent or $350,000 reduction in interest on deposits and investments. County employee benefits are expected to cost 14 percent more, a $1.8 million increase, next year.

"I think you've done a helluva job coming up with the budget you've come up with," said public speaker Jack Kinzie of 6 Foster Road, town of Johnstown.

Guy Poulin of Old State Road, Northville, asked why the county's Department of Social Services alone has to total $31 million for next year. He said too many people from out of the area are taking advantage of Fulton County social services benefits, and he urged supervisors to keep a closer eye on the DSS operation on Daisy Lane.

Michael Anich covers Johnstown and Fulton County news. He can be reached at johnstown@leaderherald.com.