A 2018 decision by the Genesee County Legislature to reduce the amount of sales tax shared with other municipalities in the county is making it harder and harder for the Town of Pembroke to meet its financial obligations, said Supervisor Thomas Schneider, Jr.
The town board reviewed the proposed 2024 budget on Wednesday, scheduling a vote for its Nov. 9 meeting on the proposed spending plan, which doesn't raise taxes, but it does raise the tax levy over the state's allowed two percent.
On Wednesday, the board voted to override the tax cap.
The proposed levy is $410,000, which is $30,000 higher than in 2023.
The larger levy is due to the increased assessed value of property in the Town of Pembroke.
"The county cut us out of the sales tax agreement, like they did five, six years ago, which is why every town is struggling the same as we are with funding now," Schneider said. "We were blessed not to have a town tax for all those many years that we didn't have a town tax. Other towns were still getting the county sales tax money and still had town taxes on top of that."
The proposed budget is $2,621,299.
Schneider said that's the bare minimum needed to keep the town operational. At the same time, the Town is looking at the need to spend $6 million to replace the highway garage.
The money has to come from somewhere, Schneider said. They've looked at increasing building permit fees, and fees have grown because of increased development, and some of that revenue has been shifted to the general fund. But it's not enough. The loss of sales tax revenue is really hurting, Schneider said.
He provided that shows that in 2017, the town received $1,322,812 in sales tax from the county. In 2024, the town will receive $1.06 million. If not for the cuts, accounting for economic growth, under the old agreement, the town would receive more than $1.7 million. The difference is a loss of $646,388.
In 2018, the City of Batavia and County reached a new 40-year sales tax agreement, subsequently approved by the state. By law, the county and city must reach a sales tax agreement, but the county is under no obligation to share sales tax with towns and villages. The towns and villages had no say in the 2018 agreement.
The county shifted sales tax from the towns and villages to help fund a new $60 million jail.
The state levies a four percent sales tax, and the county levies a four percent sales tax, making the local sales tax 8 percent.
From 2004 to 2020, Pembroke had no town property tax. After the new sales tax agreement and the cut in Pembroke's share of sales tax, the town instituted a 50 cents per $1,000 of assessed value property tax. The current tax rate, which will not change in 2024, is $1.20 per thousand of assessed value.
"It's hard to know how much sales tax is generated in the Town of Pembroke, but I'll guarantee it's a hell of a lot more than we're getting between all these truckstops, gas stations and the East Pembroke gas station on the thruway," Schneider said. "We should all share in the benefits of sales tax in this county, and we still do, but not where we would have been if that agreement was never basically deep-sixed all those many years ago."
