As expected, the City of Saratoga Springs will be going down to the wire in submitting a budget for 2009, if it makes the Nov. 30 deadline at all. And it looks like the cuts that were dodged just weeks ago are back in force.
Commissioner of Finance Kenneth Ivins presented another amended budget at a Monday, Nov. 24, workshop that takes into account a proposed 50 percent (or $1.9 million) reduction in video lottery terminal aid from the state. He made up for the expected shortfall by making across-the-board cuts, dipping into the city’s reserve fund and pushing back capital projects.
If the budget is approved, citizens will face a 3.5 percent property tax hike to $5.55 per $1,000 of assessed value. A $200,000 house would pay $1,110 in taxes under the proposal.
Ivins described this year’s budget process as a roller coaster. When the city first faced extensive cuts, relief came in the form of a DEC grant for the `Energy to Ice` program. When Gov. David Paterson threatened to cut VLT aid as part of his plan to shore up the state deficit, the city spiraled back past square one.
The City Council traveled to Albany several times last week, and met with Paterson’s budget team on Monday. With each trip, though, retaining the full $3.8 million VLT aid seemed less likely.
`I wasn’t optimistic walking out of that meeting that we’ll get it back,` said Ivins of Monday’s discussions.
He responded by halving the outlook for VLT aid and cutting $1.5 million from the amended budget. In addition, sales tax and mortgage tax estimates were trimmed to reflect more recent, and more dismal, predictions.
The cuts mean that the Department of Public Works will see its general labor pool shrink, and that empty positions across the city are not likely to be filled. Ivins presented a resolution for a 2009 hiring freeze, which would only allow departments to fill vacated positions after a majority vote of the council. The council did not vote on the measure Monday.
Ivins said residents had responded to his request for e-mails about the VLT aid, and of the 50 he received only two suggested leaving the entire VLT aid in the budget. The city will continue to lobby the state.
Public Safety Commissioner Ron Kim thinks that taking the aid out will effectively end the lobbying efforts, however.
`All of us here have been working pretty hard getting this VLT money back,` he said. `I think what we’re saying to the state is, ‘You can take that out.’`
The city’s $4 million reserve fund would be raided for $853,000 to avoid a double-digit tax hike.
`I’m not thrilled about that, but coming up with another $800,000 was becoming difficult,` said Ivins.
Some council members said that the city should go a step further and take another $546,000 out to reduce the increase to zero.
Accounts Commissioner John Franck said Saratoga Springs should follow the federal government’s lead and leverage its resources.
`I think we should bail out the taxpayers,` said Franck.
`I’m not ready to do that,` said Ivins. `We’re taking down the reserve, and I don’t like that at all.`
The council did not adopt the budget on Monday. The commissioners were reviewing it for the first time and wanted to take a closer look. Ivins admitted the proposal might have more room for savings.
`I think there is some fat left in this budget. I just need help finding it,` he said.
Public Works Commissioner Anthony Scirocco said that his department and the Department of Public Safety`the city’s two largest departments`would already be struggling to operate with the amended budget.
`The reason we didn’t sit down and give you more cuts is because we have nothing left to give,` said Scirocco. `We’re a city of tourism, and nobody’s going to come to a city that’s dirty and not safe.`
The city council is set to meet Tuesday evening, after Spotlight Newspapers goes to press, at which point a vote on the budget is probable. After that point it is unlikely the council could form a quorum before the Nov. 30 deadline, and as per the city charter the comprehensive budget Ivins presented in October would be adopted.
Ivins noted that the council can amend the budget at any time as long as it remains balanced, but that in the first week of January they must submit a tax rate to the county, and that will be locked in for the rest of the year.“