A preliminary budget approved by the Batavia City Council cuts $376,000 in spending from a previous draft, allowing the proposed property-tax increase to be cut in half.
Instead of anticipating a 3-percent tax increase, city property owners can expect an increase of just under 1.5 percent if the budget gets final approval following a Feb. 8 public hearing.
A good portion of the cut in expenses comes from a $150,000 reduction in the contingency fund. That fund might be needed if the city's unions win its any arbitration cases.
"As I mentioned, it's (cutting the contingency fund) a moderate risk," City Manager Jason Molino said following the meeting. "There's the potential there that there could be retroactive awards that could exceed that, and the city's fund balance position isn't where it should be now, though we're building it. It could be very difficult. One thing that has to be understood is that wages and benefits aren't what they used to be -- all work forces and city employees and unions have to understand that, and this is really their opportunity to recognize that and react to that. The community doesn't have the ability fund these things and in the future we're not going to be able to, and that's just something we're all going to have to react to."
In 2009, the city was forced to pay out $235,000 to the Police Benevolent Association after the union won its arbitration against the city. The city and PBA have yet to resolve all contract issues and the city will be three years behind in potential police raises in March. Two additional union contracts for city workers expire at the end of March.
Both Molino and Council President Marianne Clattenburg agree that some large settlement is likely.
"Something the unions are going to need to realize is that the city does not have the ability to provide that level of benefits," Molino said.
Cutting the property-tax rate increase in half reduces revenue by only $84,000. The additional expense cuts in the budget come from an anticipated $322,000 drop in sales tax revenue.
The spending plan now stands at $5,441,630.
The revised budget also cuts $105,000 from equipment reserve funds for police, fire, public works and facilities.
"They (the Council) did not feel they could support anything more than what was adopted," Clattenburg said. "We're just going to have to continue to live within our means."
While we all like hearing the
While we all like hearing the tax rate will be cut, we are are not ahead of the game. Cutting the Contingency Fund sounds good, but it is very risky, and might lead to a higher tax rate next year. Keep your fingers crossed.
Lets hope they can still get support to make a personnel cut at City Hall by consolidating Youth Services.
city government needs to be
city government needs to be down sized as all government, we just cant afford big government any more.city officials pay needs to be cut as school officials. higher taxes need to stop, we are taxed to death now. wake up people people are leaving NYS because of taxes.
They make it sound like they
They make it sound like they are really sweating down at city hall to keep the budget under control..But what did they really do..Nothing and taxes will still go up by 1.5 %..It sounds like a small amount ,but is it really.Property assessments are up so that alone brings in more tax..So why increase the budget at all..In 2006 the budget was 3.8 million and now it will be 5.4 million that is one hell of a increase in spending in less then 4 years....The size of the city shrinks and the budget increases.....How will the city get any kind of growth with a tax rate that increases every year...
Dead on Mark. It's a shell
Dead on Mark. It's a shell game. If you want REAL tax relief then you have to REALLY cut. As long as there is a Police and Fire Department Fully paid in everyway by tax payers, we will ALWAYS have these types of conversations, period.
I was told last year by all of the candidates that they were going to address this, "study it", create a committee....WHERE IS IT? The PBA will win and WE will pay more for it!
I heard the same thing Phil
I heard the same thing Phil ,You would think that would be job one for council to get the ball rolling on this issue as soon as possible..Paying for all these Arbitration loses to the city unions will keep on happening..I guess they like to keep on kicking the can down the road..
Cutting the contingency fund
Cutting the contingency fund to make the tax hike smaller is stupid.
There is a reason for that fund, to protect the city from expenses that can not be predicted. If we have some large arbitration decisions go against us (which is likely)or major equipment breakdowns, we will need that money. But if the fund is cut to hide a tax hike, then we might have to borrow money, pay interest and raise taxes even higher next year.
Nobody wants higher taxes, but this is just poor business.