City Council members are proceeding with caution after learning the Video Lottery Terminal money generated by Batavia Downs Gaming has been restored to local municipalities.
Last week, Assemblyman Steven Hawley announced that $440,000 in VLT funds will be returned to the City of Batavia – a reversal from Gov. Andrew Cuomo's last-minute proposal that drove Council to pass a budget with a 7.48 percent property tax increase.
Council members discussed the new development at tonight’s joint Conference/Business videoconference that was live streamed on The Batavian.
Rose Mary Christian, reflecting the collective view of the board, said she will believe it when she sees it (in the City’s bank account).
“We can’t count on any of this unless we have it in our hand," she said. "We’re going to be hurting for quite a while because they (state lawmakers) are going to need it.”
Responding to comments made by City Manager Martin Moore on the need to start planning now for next year’s budget – a spending plan certainly to be dealt a harsh blow by the coronavirus and its affect on sales tax revenue, Christian said she feels the residents’ pain.
“Marty, I really do not want to count on that money whatsoever at this point," she said. "I really feel our area is going to be hurting for taxes, property taxes, county taxes, water. I really feel sorry for the people throughout our community at this time, and I really don’t want to count on anything. People are having a very difficult time.”
Moore informed the board that a provision of the state budget is that “at certain times of the year they can take aid back that was approved by the legislature and signed by the governor.”
“That’s why we need to hold off on spending right now … looking at capital projects on a piece by piece basis,” he said.
Moore said it is too late to rework the budget, adding that there is no guarantee the (VLT) money will be received.
“If the money does show up, we will be very careful with that,” he said. “A most likely scenario is that our sales and use tax are going to take a hit and because of that fact, it may have to help fill some of the hole … for some of that loss in sales and use tax revenue.”
Council President Eugene Jankowski emphasized that “serious budgeting” is in store.
“We need to start planning next year for that money not being in our budget, and we need to not be surprised,” he said.
He said he does not want to have to exceed the (2 percent) tax cap again, either.
“I would like to keep it within our means and below the tax cap," he said. "That’s going to mean serious budgeting. We have 11 months to figure it out and we need to start today to plan ahead."
Jankowski also mentioned the state’s decision to fund (distressed) hospitals and nursing homes by taking sales tax before distribution to municipalities.
“The governor’s budget is taking money out of the sales tax revenue to supplement hospitals before they give it back to the county,” he said. “Not only are they taking AIM (Aid and Incentives for Municipalities) funding out of sales tax revenue then giving it to us, now they’re adding $50 million for hospitals, and then next year it’s going to be less. But this year they’ll take the biggest hit at the time we’re at the biggest hit ourselves.”
He said if the VLT money is available, the City will use it for one-time purchases or “maybe bring back some of the cuts we made this year.”
“But we’re not going to use it for the budget anymore; we can’t count on it and they’ll pull the rug out from underneath us,” he said.
Council passed two resolutions:
-- Taking $30,000 from the facility reserves to cover unexpected construction costs pertaining to the City Centre roof alternations and replacement project.
A recent design change with the skylight roof covering resulted in an additional expense of $13,040. The remaining nearly $17,000 will be available in case of a condition change that needs to be addressed right away once the main roof construction work starts.
-- Approval of the sale of foreclosed property at 697 E. Main St. to Joshua Doll for $10,000.
Doll was the highest bidder at an auction on March 14. The City’s Inspection Department reviewed the property and did not object to the sale.
