As we reported previously, the proposed 2011/12 fiscal year budget for the City of Batavia contains a 1.59-percent increase in the property tax levy.
Below are some highlight's from City Manager Jason Molino's annual budget message, released yesterday:
- In 2006, the city council embraced a "Road to Reconstruction" plan that outlined three steps to "slow the bleeding," "stop the bleeding," and "recovery." The plan combined cutting expenses, raising taxes, improving fiscal management and, finally, developing a plan for going forward.
- At the time, the city had a lingering $2.2 million general fund deficit. The city responded by eliminating 35 staff positions and raising taxes by 19.5 percent in 2007 and 8.2 percent in 2008. Prior fund balance deficits were eliminated.
- Inter-fund loans, taking money from one revenue bucket in the city budget and using it to fund other operations, were eliminated by 2010, improving the fiscal health of the city.
- The undesignated fund balance -- cash reserves -- moved from a deficit of more than $2 million in 2006 to a positive balance of $206,216. That's still well below the NYS Comptroller's Office recommendation for the city of $700,000 to $1.4 million.
- There were property-tax increases of 1.6 percent and 1.55 percent in 2009 and 2010.
- In March 2010, the city council adopted a Water and Sewer Capital Infrastructure Plan to address the city's aging infrastructure. The plan lays out a 10-year road map for infrastructure replacement with no more than a 4-percent increase in water rates and no increase in sewer rates.
- Consolidation of police dispatch with the county has achieved a $215,000 annual savings.
- In 2008, the city fire department's ambulance service had created a $1,276,350 intra-fund loan to make up for revenue shortfalls in the service. There was no plan to payback the continued operational deficit, jeopardizing the health of the city's general fund. Elimination of the ambulance service has enabled the city to protect its general fund from further revenue drains.
- In 2007, the city began to aggressively pursue grants and have so far garnered $4 million in state and federal grants, including (but not all): $1.5 million for the Masse-Gateway Project; $150,000 for sidewalks; $411,000 for Bank Street improvements; $260,000 for consolidating dispatch; and $400,000 for a housing rehabilitation program.
- "We still have many objectives left to accomplish, such as fund balance and reserve fund growth," reads the report.
- General fund appropriations for 2011/12 are expected to be $14.8 million, with an increase of the property tax to $10.51 per $1,000 of assessed value. Property tax, however, is only one-third of the city's revenue.
- A state program, Aid to Municipalities, is expected to decrease by $75,000, following a previous decrease of $38,000.
- $120,000 from the equipment reserve will be used to purchase a new dump truck/snow plow to replace a 26-year-old truck.
- The major increase in expenses is to cover pensions. Since 2009, the city's retirement contribution has increased 49 percent, or $528,919.
- The proposed budget includes continued contribution to reserve fund balances totalling $110,000 for equipment, employee benefit accrued liability, retirement, health care and facilities.
- Workers compensation is going up 9 percent, or $18,000.
- The city will buy a new detective's car for the police department at a cost of $20,000. There is also an anticipated $5,000 increase in overtime for community policing and a Neighborhood Enforcement Team, which is part of the new strategic plan.
- The fire department budget is going down by $60,000, primarily because three firefighters have retired, with lower-wage new hires being brought aboard. The union has agreed to let one position remain vacant for a year. Overtime has decreased by $85,000.
- Employees represented by AFSCME will receive no wage increase. CSEA employees receive a 1.5-percent increase and fire union employees receive a 2.5-percent increase. There is no wage increase for management employees. The city is also facing arbitration with the police union, which is four years in arrears on a new contract.
