video lottery terminal

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.

Batavia City Council Member Robert Bialkowski took a swipe at the state governor Monday night as he voted “yes” to setting a public hearing on Feb. 24 to override the property tax cap.

“I’d like to thank Governor Cuomo and his cronies for doing this to us,” Bialkowski said, referring to a proposed state budget that includes revenue generated by video lottery terminals at Batavia Downs Gaming – money that has always gone to municipalities, such as the City of Batavia, that host VLT gaming.

City leaders are scrambling to come up with ways to plug the gap caused by the potential loss of more than $440,000. A recommendation from City Manager to cut expenses and raise taxes in the 2020-21 budget (see Monday’s stories in The Batavian) currently is on the table.

Discussion during last night’s Special Conference Meeting centered on Moore’s recommendation and the governor’s action that, according to City Council President Eugene Jankowski, came as a surprise.

“Three years ago, we started using it (VLT money). “We were going to use it to offset taxes again this year and it got pulled from us without any advance warning,” Jankowski said.

He said that he hoped that pressure from state senators and assembly members would be able to change the governor’s mind about the VLT funds, but if not, thought the city would be in a better position to budget properly in 2021-22.

Moore said the loss of the VLT money is “fairly substantial” and credited the City’s department heads with delivering ways to cut expenses.

He warned against using unallocated cash tied to the workers’ compensation fund.

“We’ve got to be careful with that,” he said. “There’s a strong determination on my part … I needed to listen to them (staff) and to the data. We can not use those funds. They need to be there in case of claims, which could be $100,00, $200,000 or $500,000 in a single shot, and they come unexpected.”

Jankowski emphasized that Monday’s vote was just to schedule the public hearing – not to override the tax cap at this juncture.

He also made it a point to explain that the City was holding back on hiring an employee to handle additional paperwork caused by the state’s bail reform and discovery law changes and an additional school resource officer.

“We have no choice other than to take it out of reserves … and that is not a good idea,” he said.

On another front, Council members heard from Richard Unlauf, a city resident, who sought approval from the board to construct a skate park in the City and “hopefully within a City park.”

Umlauf said he has been in touch with the Tony Hawk Foundation and Ralph C. Wilson Foundation, which offer grants – one for $250,000 (a matching dollar-for-dollar grant) and another for ecological studies in the amount of $50,000.

“It’s a project that is close to me as I am one of the kids that benefitted from the previous park,” Umlauf said. “It kept me free and clear (of trouble).”

Umlauf volunteered to head a committee to look into such a project, adding that several residents have reached out to him to express their interest.

In response, Council Member Paul Viele asked about the liability to the City. Jankowski called for more information and Kathleen Briggs wanted to know more about the grant possibilities.

Moore said a skate park brings a number of different factors into play as far as insurance is concerned and was backed by City Attorney George Van Nest, who said that a skate park could add “different layers” to the insurability process.

“You need to make sure there is ample insurance and analyze the risk and cost associated with taking that on,” he said.

Council Member Rose Mary Christian suggested that Umlauf continue with his efforts and report back to Council next month.

On another matter, Moore reported that a committee formed to look into the deer overpopulation problem in the City has met twice and is looking at eight different areas or zones.

“They are looking at which ones to tackle first … to get the best bang for the buck – or probably the doe at this point,” he said, pun intended.