With New York State’s blessing in hand, the Batavia City Council tonight wasted no time in approving an amended sales tax allocation with Genesee County.
By an 8-0 vote (Council Member Rose Mary Christian was absent), the board OK'd the 40-year contract that, in City Manager Martin Moore’s words, “provides a level of stability as we move forward in budget planning and strategic planning.”
Just as importantly, the agreement – which was passed by Genesee County legislators in January – gives the county the necessary time to fund a new jail and to manage the long-term debt payments associated with the building of the jail and other capital projects.
Last week, Gov. Andrew M. Cuomo signed into law Bill S4247 that allows Genesee County and the City of Batavia to enter into a sales tax allocation agreement not to exceed 40 years.
As part of the process, bonds will be issued to fund construction with a term of up to 40 years. This means that both the County and City will have assurances that, for the duration of the bonds, they can count on a distinct sales tax revenue stream.
Terms of the City/County agreement have Batavia receiving 16 percent of the county’s 50 percent share of the 8-percent sales tax – with provisions for that amount to grow in future years by a maximum of 2 percent per year.
In future years, the City’s share will depend upon sales tax revenue growth, eventually being no less than 14 percent.
The new agreement will take effect on Jan. 1, a day after the current one-year contract expires.
The vote came during a Special Business Meeting convened immediately after the regularly scheduled Conference meeting.
Three related joint agreements dealing with water supply, water treatment facilities lease and water treatment plant operation and maintenance were moved to the Nov. 12 Business Meeting.
