Albany needs to tackle unfunded mandates before it imposes a property tax cap on local governments, says a resolution the Batavia City Council will be asked to consider at its meeting Monday.
In a report to the council from City Manager Jason Molino, he says mandates make local spending "artificially high."
The report doesn't specify what unfunded mandates the city is most concerned about, but does say that the New York Conference of Mayors has appointed a 20-member task force to identify unfunded mandates and recommend what to do about them.
In the early stages of looking at the 2011/2012 city budget, Molino says, there is a potential $1.1 million shortfall, due mainly to rising retirement costs.
Retirement costs are expected to go up by $371,000, but with the proposed property tax cap, the city would only be able to realize an additional $72,000 in additional revenue, leaving a deficit of $289,000. That deficit would mean a cut in city services, Molino said.
The city manager's report does not advocate a tax increase, and the proposed resolution notes that New York has some of the highest property tax rates in the nation. Taxes are high, according to the resolution, because state mandates imposed by Albany on local governments are so inefficient.
A property tax rate cap will only work, according to the resolution, if mandated expenses are repealed. It also says that without mandate relief, and a property tax cap, local governments will be forced to drastically reduce services and eliminate jobs.
