Thanks to a healthy fund balance, even with the levy increase, tax rates in the town's five districts are expected to decrease between 10.8 percent and 34 percent.
And although the town's total assessed value has increased roughly 4 percent, Politi expects tax bills to be the same or lower than 2009.
In the 2010 budget, $310,000 was slashed from general town expenditures, $230,000 from the highway budget and $137,000 from the park district.
According to Highway Superintendent Larry Straight, roadwork will still continue, but at reduced levels.
Politi and Budget Officer Catherine Gregory predict that traditional town revenue streams like mortgage tax and building permit fees will continue to plummet.
In 2007, North Elba made $475,000 in mortgage tax revenue. Thus far in 2009, only $152,250 has come into town coffers.
Gregory said that she anticipates an additional 12.5 percent decrease in mortgage tax revenue in 2010.
All elected and appointed town officials and part-time employees have accepted a pay freeze, while union employees have accepted a reduced pay increase of 2.5 percent.
The board has also budgeted money for the installation of a recycling machine at the town transfer station that will allow people to use their bottle deposits to pay for dump fees.