City Manager Jason Molino informed council members Monday night that he's found another 2.17-percent savings in the city's 2012-2013 budget.
He also shared how he believes some city residents will save money under the proposed changes in garbage collection service.
Molino also proposed making a first-year commitment of $45,000, taken from reserve funds, to back community enhancement plans put forward by the Vibrant Batavia committee.
The new proposed tax rate is $8.95 per thousand of assessed value, which is a 16.42-percent decrease from the 2011-2012 tax rate of $10.71.
For a property owner with an assessed value of $80,000, that is $140.80 savings in tax payments.
As part of the budget presentation during the workshop meeting last night, Molino shared figures based on Batavia's average assessed value for single family homes of $92,000 that showed such a homeowner would save money with proposed changes to the garbage collection service.
City staff is proposing a switch to an automated tote system -- residents would wheel totes out to the curb and a one-man garbage collection truck would drive by and use a lift to pick up the tote and dump trash into the truck.
The lowest bidder to take over the garbage collection under the new system is Allied, based in Arizona. If Allied is awarded the bid, it would end nearly 30 years of garbage collection in Batavia by Genesee ARC.
The actual projected savings are based on Molino's contention that taxes will have to go up if the current program with ARC is continued into 2012-2013.
To continue the current garbage collection system, taxes would need to go up to $11.14 per thousand, Molino said.
He said for a home assessed at $92,000, the property owner would pay $823,40 for a 35-gallon refuse tote. The refuse fee would be $169 annually for a total spent on property taxes and garbage collection of $992.40.
For 2011-2012, that property owner is paying $985.32 in a single bill that covers property taxes with garbage included, so the new system would cost $7.08 more.
However, Molino said the tax rate cannot remain at $10.71 if the council elects to keep ARC without the totes.
The tax rate would have to go up to $11.14, making the tax levy for that $92,000 home $1,024.88 -- or $39.56 over this year's taxes.
Using those numbers, the person who owns a $92,000 home would save $32.48 with a 35-gallon tote. The homeowner would save $3.48 with a 96-gallon tote (which has a refuse fee of $198 annually).
Here's a charge looking at various options:
Assessed Value
Current tax of $10.71
$8.95 + $169 Fee
Tax Rate of $11.14
$70,000
$749.70
$795.50
$779.80
$80,000
$856.80
$885.00
$891.20
$92,000
$985.32
$992.40
$1,024.88
$105,000
$1,124.55
$1,108.75
$1,169.70
$120,000
$1,285.20
$1,243.00
$1,336.80
$160,000
$1,713.60
$1,601.00
$1,782.40
$200,000
$2,142.00
$1,959.00
$2,228.00
$250,000
$2677.50
$2,406.50
$2,785.00
Councilwoman Patti Pacino said she's had constituents raise the issue with her that they don't understand why the city is projecting an increase in garbage collection costs when ARC hasn't been raising their prices.
Molino said the increase is due to annual hikes in the tipping fee costs for refuse disposal at a facility in Riga.
CORRECTION: Molino said ARC has raised rates over the past five years.
Councilman Jim Russell asked why the city has separate contracts for garbage collection and garbage disposal and Molino said the arrangement is unusual, but it was put in place decades ago.
Typically, Molino said, there's just one contract with a refuse collection company, because such a company can usually get better rates from waste facilities (be they dumps or incinerators) because of the greater volume one collection company generates over multiple jurisdictions.
Buying the totes will cost the city about $500,000. The city will borrow the money on what's called a "bond anticipation note." Such a financial scheme allows the city up to five years to pay back the loan or it must issue a bond. The cost of the totes are built into the user fee and will be paid back through the user fee within five years.
The totes have a 10-year warranty, but on average, they should last 15 years, even in Batavia.
Once the totes are paid for, the council will have a decision about what to do with the extra fee being charged -- lower the rate, save it for buying new totes in future years, or a combination of both.
On the issue of Vibrant Batavia: The council will be asked to pass a measure that will create an official committee and fund the projects of Vibrant Batavia for $45,000 for the first year.
Vibrant Batavia is being asked to increase its fundraising commitment from $22,000 to $27,000.
Vibrant Batavia is a community development program that will work on neighborhood revitalization, marketing the city and planning for the city's centennial celebration.
Initially, Vibrant Batavia requested $50,000 a year for three years. The council will review the progress of Vibrant Batavia after the first year and decide whether to fund it further.
"If it goes well, then you're second and third year discussions will be easier," Molino said. "If it doesn't go well, you discontinue it."