taxes

A preliminary budget approved by the Batavia City Council cuts $376,000 in spending from a previous draft, allowing the proposed property-tax increase to be cut in half.

Instead of anticipating a 3-percent tax increase, city property owners can expect an increase of just under 1.5 percent if the budget gets final approval following a Feb. 8 public hearing.

A good portion of the cut in expenses comes from a $150,000 reduction in the contingency fund. That fund might be needed if the city's unions win its any arbitration cases.

"As I mentioned, it's (cutting the contingency fund) a moderate risk," City Manager Jason Molino said following the meeting. "There's the potential there that there could be retroactive awards that could exceed that, and the city's fund balance position isn't where it should be now, though we're building it. It could be very difficult. One thing that has to be understood is that wages and benefits aren't what they used to be -- all work forces and city employees and unions have to understand that, and this is really their opportunity to recognize that and react to that. The community doesn't have the ability fund these things and in the future we're not going to be able to, and that's just something we're all going to have to react to."

In 2009, the city was forced to pay out $235,000 to the Police Benevolent Association after the union won its arbitration against the city. The city and PBA have yet to resolve all contract issues and the city will be three years behind in potential police raises in March. Two additional union contracts for city workers expire at the end of March.

Both Molino and Council President Marianne Clattenburg agree that some large settlement is likely.

"Something the unions are going to need to realize is that the city does not have the ability to provide that level of benefits," Molino said.

Cutting the property-tax rate increase in half reduces revenue by only $84,000. The additional expense cuts in the budget come from an anticipated $322,000 drop in sales tax revenue.

The spending plan now stands at $5,441,630.

The revised budget also cuts $105,000 from equipment reserve funds for police, fire, public works and facilities.

"They (the Council) did not feel they could support anything more than what was adopted," Clattenburg said. "We're just going to have to continue to live within our means."

Elimination of the ambulance service in 2009 means the city will be spending less money overall in 2010/11, according to City Manager Jason Molino's annual budget message.

The overall expense -- all budget lines -- for the city will be down $1.2 million, or 5.48 percent.

However, the General Fund expense will increase $183,116. The city must also continue to build its fund balance in order to be able to handle unanticipated events and put the city on a sound financial footing.

So a property tax increase of 3.07 percent is necessary, Molino wrote. It would raise the rate to $10.50 per $1,000. That works out to about $25 per year more for a home owner with an average valued house of $80,000.

Increased expenses for the city include:

• New York State Retirement Costs: Up $200,000 because the state's pension fund losses have exceeded more than $44 billion. All municipalities in the state are being forced to make up the difference.
• Police: The police department budget is up $74,000 following this summer's arbitration settlement.
• Fire: The fire budget is up $412,000 following the severance/settlement agreement related to elimination of the ambulance service. Overtime is down $35,000, but a big part of the increase is making up for increased state retirement costs.
• Contingency: Up $100,000 to plan for an unknown settlement with three of the city's unions currently in negotiations on new contracts.
• Health Insurance Reserve: The city is self-funded for now, but there is no reserve for an unexpected critical expense. Add, $60,000.

There are also some notable cost reductions for the city:

• DPW's budget is down $240,000, but there is still apparently money for required equipment replacements. The average age of DPW equipment is 24 years.
• The city is no longer paying back prior years' deficits at a rate of $250,000.
• The 2009/10 fiscal year was the first time in three years that the city wasn't engaged in temporary borrowing to pay bills. That means the city won't be making $33,000 in interest payments for a prior year's loans.

The proposed budget includes a 1.5-percent raise for 10 management employees.

Molino's budget notes that, "Over the course of the past three years the City has faced a lingering $2.2 million general fund deficit, significant cash flow deficiencies and deficits in all other operating funds."

This led the city to layoff 23 staff members and not fill 15 other staff positions. During those three years: there were no wage increases for union members or management; temporary borrowing was necessary to pay bills; and the ambulance service was eliminated, dispatch was consolidated and maintenance deferred.

"City staff has sharpened their pencils, adapted to crisis management and tapped into their creative and innovative minds to maintain service levels at reasonable costs," Molino writes. "As a result, the City of Batavia over the past three years has, by a slim margin, eliminated its prior fund balance deficits and begun to plan for what improvements and investments will be needed in order to maintain a sustainable community for our citizens."

Are you ready for your property taxes to go up another 7.7 percent?

That's what state Comptroller Thomas DiNapoli says will happen in two years when $2 billion in federal stimulus money now being used for schools dries up.

The D&C reports:

DiNapoli said in a report Monday that unless the federal aid is renewed or replaced by state aid, schools will be hard-pressed to make up the loss of revenue. DiNapoli said about $2.8 billion in federal stimulus money went to schools this fiscal year, of which $1.6 billion restored proposed education aid cuts.

Joseph P. Ryan, 52, a Batavia resident, admitted in an Albany court yesterday that he failed to file an income tax returns from 2004 through 2008.

The charge of failing to file is a misdemeanor.

Ryan is a vice president of Brighton Securities, which has an office in Batavia, but is headquartered in Brighton, a suburb of Rochester.

Before entering the plea, Ryan paid the state $57,749 in back taxes.

He was sentenced to one-year conditional release and a $5,000 fine.

(Source: Democrat and Chronicle).

Batavia's representative in Albany issued a statement this morning critical of a legislative plan to reduce spending because, he said, it hits Western New York harder than wasteful downstate interests.

Assemblyman Steve Hawley said he voted against the plan.

"Yes, tough choices need to be made, but once again the downstate leaders have attempted to balance their inflated spending on the backs of Western New Yorkers," Hawley said in a statement. "Just as I voted against the excessive 2009-10 State Budget, I also voted against this "reduction" plan that does nothing but further shift the burden of Albany's irresponsible spending onto the backs of hardworking Western New Yorkers."

(UPDATE: The Batavian's news partner, WBTA, spoke with Steve Hawley this morning. Listen (mp3).)

The Buffalo News reports that the deficit reduction plan leaves New York still in the hole about $1 billion. The News characterized the cuts as "politically painless."

"Putting off the pain" is how the Albany Times-Union described the so-called deficit reduction plan.

After railing against Gov. David Paterson's deficit reduction plan for more than a month and a half, legislative leaders essentially endorsed half of his proposed measures. However, they spared themselves the political risk of cutting aid to schools that the governor says most districts -- sitting on plenty of reserves -- could have afforded. Instead of going along with an admittedly tough, unpopular move that the governor could still make, lawmakers opted to use $391 million in federal stimulus money that the state was holding for next year.

In an editorial, the Buffalo News also raps the legislature for its inaction, and includes this gem:

Rare is the politician who seeks office based on the promise that he will spend less on your children’s school and your grandmother’s hospital. But New York spends so much more than any other state on both functions without making our offspring smarter or our elders healthier. Like other states, our schools and health care institutions will simply have to make do with less money.

The New York Times editorial says the blame for the state's spending problems rests primarily with the Senate.

The State Senate, on the other hand, has done little more than issue press releases. Senators are too busy eyeing next year’s elections, especially those lawmakers with the least political security — that is, a few suburban Democrats in dicey districts and all 30 of the Republicans, who want to regain the majority next year.

They don’t want to do anything unpleasant or really difficult like pare state expenses in midyear — in other words do their jobs — even if it means facing an even larger deficit in April, perhaps as high as $10 billion.

Hawley's full statement following he jump:

After months of knowing that this year's revenues would force budget cuts and after weeks of returning to Albany with no agreement on the table, I was pleased that both houses were able to come together to agree on some of the necessary cuts.  However, by taking next year's federal education funds, cutting aid to municipalities (including to the City of Batavia) and reducing access to health care in rural communities, like those in Western New York, this plan is full of problems.

Yes, tough choices need to be made, but once again the downstate leaders have attempted to balance their inflated spending on the backs of Western New Yorkers.  Just as I voted against the excessive 2009-10 State Budget, I also voted against this "reduction" plan that does nothing but further shift the burden of Albany's irresponsible spending onto the backs of hardworking Western New Yorkers.

Instead of adopting the many proposals to reduce the deficit that I proposed along with our Conference, downstate leaders decided to turn their backs on implementing real solutions.  Under the cover of darkness, with smoke and mirrors, after four weeks at a cost of $322,000, downstate leaders adopted the old adage of "borrowing from Peter to pay Paul."  Only they robbed next year's federal money from Obama to pay Shelley, Dave and John.

On top of these hurtful cuts, this plan also includes cuts to community colleges and Roswell Park as well as cuts $10 million from Timothy's Law, causing more increased costs again for small businesses.  Additionally, this plan cuts fees for out-of-state CPAs but does nothing for those instate.  They did the same thing to insurance small businesses last year, sending a consistent message that Albany does not care about New York State small business and further weakening our state's economy.

This plan cuts too little and doesn't address the nearly $4 billion deficit we have this year.  What's worse is cutting $391 million from education and replacing that with next year's federal stimulus, further exasperating the problem. Coupled with these other dangerous cuts, this plan is a deficit deferral not a reduction and it sets up our state for a deeper deficit next year, which is already estimated to mount $10 billion.

New York taxpayers could be spared as much as $760 million in unnecessary expenses by sharing services, according to Comptroller Thomas P. DiNapoli.

“Tax dollars are tight and families are struggling,” said DiNapoli. “Now more than ever we need to find ways to cut costs and lower property taxes. A good number of local governments are already saving millions in tax dollars by pooling their resources and eliminating duplication. But there are 3,175 local governments in New York State. All of these counties, cities, towns, villages, school districts and fire districts should use this report as a road map to save tax dollars without hurting the quality of services they deliver.”

In other state economic news:

• Gov. Paterson ended talks with legislators in frustration that elected officials are unwilling to make unpopular decisions to close the state's budget shortfall. He ordered reductions in scheduled state payments to local school districts.
• DiNapoli said in another statement that the state needs to stop relying on gimmicks to handle its financial situation and enact meaningful, long-term reforms.
• While the national economic recovery moves forward slowly, Wall Street is apparently in full recovery mode and is on track to record record profits in 2009.

Assemblyman Steve Hawley joined his GOP colleagues in the Assembly Minority Conference in providing Gov. David Paterson a list of proposed spending cuts.

The cuts, if accepted, could save the state $3.5 billion.

"The Governor has asked each conference to present cost-saving ideas and for years we have had a list of ideas ready and waiting.  This is the third set of common-sense cost-saving solutions we have presented to the Governor and other legislative leaders.  Our plan has no new taxes or fees, these are not proposals for new revenue; the state does not need new revenue, it needs to stop spending the same way families and businesses are already doing,"  Hawley said in a statement.

The proposed cuts include:

• Eliminate $130 million in unspent pork barrel accounts in both houses;
• Reduce redundancy in state agencies
• Eliminate undispersed contracts.

Full press release after the jump:

Along with the entire Assembly Minority Conference, Assemblyman Steve Hawley (R,I,C-Batavia) today presented a new list of solutions that would help close this year's budget deficit as well as set up the state to guard against future deficits with long-term cost savings.  In total, the plan could save over $3.5 billion mid-year and is the third proposal submitted by Hawley and his colleagues for the consideration of the Governor and other
legislative conferences.  To date, neither majority conference has publicly proposed any cost-saving solutions.

"The Governor has asked each conference to present cost-saving ideas and for years we have had a list of ideas ready and waiting.  This is the third set of common-sense cost-saving solutions we have presented to the Governor and other legislative leaders.  Our plan has no new taxes or fees, these are not proposals for new revenue; the state does not need new revenue, it needs to stop spending the same way families and businesses are already doing," said Hawley.

Among the proposals are initiatives to eliminate $130 million in unspent pork barrel accounts in both houses as well as a miscellaneous member item payment to the City of Yonkers for $4.5 million.  Hawley stated, "Albany is asking every New Yorker to make sacrifices.  It is outrageous that there is 'extra' cash in these accounts for members to spend on pet projects at home. Downstate leaders should not be allowed to hold onto this cash.  They should be forced to make the same spending sacrifices as the rest of the state, especially the Western New Yorkers they are so willing to increase taxes on - from utilities to license plate mandates.  This irresponsibility needs to stop."

Other proposals include measures to reduce redundancy in state government agencies.  For example, merging administrative costs in the Department of Real Property Taxation with the Department of Taxation and Finance or the Consumer Protection Board with the Department of Law.  These savings would amount to at least $924.6 million.

Another area that Hawley has taken a look at and discovered significant cost-saving opportunity is with the amount of money wasted on undispersed contracts.  For example, if the state reduced the balance of these contract accounts by just 5 percent, over $300 million would be available to close this year's budget deficit.  Hawley stated, "These contracts are not the type of contracts that will hurt outside business, not construction or highway jobs.  These are the creative solutions that we have been working to find for months now and have presented time and again.  It's time the majorities take our example, present their ideas openly or accept our proposals and run with them."
 

The good news is, Gov. David Paterson has second thoughts about new license plate fees; the bad news is, Paterson is still talking about ways to "raise revenue" rather than cut costs, according to Associated Press.

The license plate plan announced last week had been expected to raise $129 by requiring vehicle owners to pay $25 to buy new plates starting next year.

The idea was immediately met with scorn by New Yorkers across the state.

More than 100,000 people signed an anti-license-plate-petition at nonewplates.com

County Jay Gsell has laid it out there -- in order to meet Genesee County's budgetary needs, residents will need to pay an additional 8 cents per $1,000 of assessed value.

Gsell expects $24.7 million of the county's revenue to come from property tax. That's up 2.7 percent from the previous year.

The 8-cent increase works out to about $7 per year in higher taxes for a home owner with an $80,000 piece of property.

Gsell:

This 2010 recommendation is at best a hedge against continued fiscal pressures delivered at Genesee County’s doorstep with regard to increasing human services clients, criminal justice activity, poor economic indicator performance in the regional and state economies and the current mandated service delivery programs that harken back to the 1970’s origins with the unrealistic New York State spin of hooking county governments into not only delivering and administering what are typically state and federal partnerships in the rest of the U.S., but also having counties directly funding actual benefits – the so called “local shares.” 

There will also be no new county jobs created in county government, Gsell said.

Overall, the county budget is going up .01 percent to $140,666,000.

Gsell is also freezing pay at current levels -- no pay increases -- for top county management staff.

Mandated costs -- Medicaid, Early Intervention/Preschool, Handicapped Children’s, Mental Health LGU, Probation, County Jail and Public Defender/Assigned Counsel -- consume 84 percent of the county's property tax levy.

Right now, the cost of garbage collection in City of Batavia is just part of each property owner's tax bill.

It doesn't matter if dwelling is four units with four families, or one unit, the fee you pay is based on assessed value. There's no direct correlation between the amount of refuse produced from your property.

Councilman Sam Barone said last night the current system is unfair.

“Presently, it's based on the value of your home, for example," Barone said, "and there are some agencies that don’t pay at all, non-profit organizations, for example do not pay for trash service.”

Barone brought forward a now familiar proposal -- one that hasn't gotten far before -- to break out the cost of garbage collection as a separate fee on tax bills, and modify the fee-based system so its charged on a per-unit basis, including non-profits.

Councilwoman Rose Mary Christian immediately objected to the idea, saying, "You’re going to see a lot of garbage all over the city."

Councilman Frank Ferrando then backed Barone's proposal.

“We should investigate this because this should really bring down costs to taxpayers,” Ferrando said. “What we're doing is we're looking at the cost, a fairer way of distributing the costs. We should look into it."

At which point, Christian said, “There’s no doubt we should look into it.  We discussed it at the last budget meeting and agreed that we should discuss it sometime this year because it would definitely bring down the cost to taxpayers, so somehow, some way if we can do it, yes.”

Council President Charlie Mallow said he didn't favor putting a fee on garbage collection for non-profits. "Non-profits do a lot of good for the city," Mallow said.

The decision: City staff will investigate what other municipalities in the state are doing and bring a report back to council.

NYS is now putting yet ANOTHER tax on business.....

http://www.buffalonews.com/cityregion/story/792670.html

Once again, LOWERING TAXES GROWS BUSINESS....RAISING TAXES (or disguising taxes as "fees") CHASES BUSINESS (jobs) AWAY!!

They need to quit spending ALL our $$.  They are just NOT going to stop taking it all until we are totally broke!

The fight to repeal a two-percent utilities is gaining supporters, according to Assemblyman Steve Hawley.

Hawley announced this afternoon that bi-partisan support for his legislation to repeal the tax has received the backing of more than two dozen Assembly members.

“I am pleased that so many of my colleagues have already signed on to support this important bill in such a quick period of time,” said Hawley.  “It is good to know that members, from both sides of the aisle, can still come together over common-sense measures that benefit the people of our state and I look forward to their continued support when we return to Albany.”

Full press release after the jump:

Press Release:

As the original author of legislation to repeal the new two percent tax on utilities, Assemblyman Steve Hawley (R, I, C – Batavia) is pleased to report that his legislation has now gained the support of over two dozen, bipartisan members of the State Assembly.

“I am pleased that so many of my colleagues have already signed on to support this important bill in such a quick period of time,” said Hawley.  “It is good to know that members, from both sides of the aisle, can still come together over common-sense measures that benefit the people of our state and I look forward to their continued support when we return to Albany.”

Assembly Bill 9098, authored by Hawley, will repeal in full the increased tax on utilities, which now totals 2 percent of a consumer’s bill.  The tax increase was made as part of the enacted 2009-10 State Budget, which Hawley opposed.  The newly increased tax went into effect on July 1, 2009 and will cost average homeowners an increase of $40 to over $200 annually.

Hawley’s bill, A.9098, has been introduced and referred to the Assembly Committee on Corporations, Authorities and Commissions for their review.  With four members of this committee signed on to support this bill so far, and the growing support for the initiative with the public, Hawley is hopeful that the bill will be addressed when the Assembly is called back into session.  

“This winter is going to be tough for many New Yorkers, especially seniors here in Western New York, to afford their utilities.  Already, in previous years, we have seen seniors forced to choose between food, prescriptions and heat.  This increased tax compounds that problem and that’s why, before this winter, I hope that we can repeal this excessive tax,” said Hawley.

The Assemblyman is not only working across the aisle to garner support for this bill; he is looking at both houses.  As previously announced, State Senator Michael Ranzenhofer has agreed to carry the bill in the Senate and together he and Hawley are working to encourage more senators to support the bill as well.

    Members of the public who would like to see the 2 percent utility tax repealed should contact Assemblyman Hawley’s office to sign his petition, which will be delivered to the Governor.  Residents should also write to the Chair of the Assembly Corporations, Authorities and Commissions Committee, Richard Brodksy and ask that he immediately take action on the bill.  You can contact Assemblyman Brodsky by writing, calling or emailing at the following:

The Honorable Richard Brodsky
Chair, Assembly Corporations, Authorities & Commissions Committee
5 West Main Street, Suite 205
Elmsford, NY 10523
Phone: (914) 345-0432
E-mail: brodskr@assembly.state.ny.us

I know there has been a lot of talk about the City of Batavia saving money. Here is an idea that seems to be going around Erie county, lets downsize Council. Batavia seems to have a large council considering the times, maybe eliminating the two "at large"  positions to cut more fat from the city budget might be a good idea. Not sure if it has been looked at, but if we are looking to save money in the city, why not start at the top? Maybe its just me, but wouldnt that be responsible government?

Just a friendly reminder for all my fellow Batavian readers....driver's license fees and motor vehicle registration fees increase on Tuesday 9/1/09.  I believe it's like a 20% increase on each. Thanks Governor Dave, someone has to make the hard choices. Nice how it's a tax on people with cars. As if gasoline taxes, thruway tolls, surcharges on insurance weren't enough, now let's hose the constituents upstate some more. Wonderful how the governor isn't hammering the majority of NYC residents, who have no cars. I'm tired of it, and it's time for a change.

How many ways can New York come up with to tax us?

That's one of the things Batavia resident Louis Dobbs wonders.

Assembly Steve Hawley and Sen. Mike Ranzenhofer held a joint press conference at the Batavia home of Dobbs today calling for a repeal of a recently enacted two-percent tax on utilities.

"It just never seems to end," Dobbs said. "Just when I thought New York State had exhausted all the possible ways to tax us, they find one more way to squeeze a few more dollars out of our wallets." (listen)

Hawley and Ranzenhofer are asking their constituents to sign petitions, which they, along with other Republicans in the legislature, will take to Gov. David Patterson, hoping to convince him to drop the tax.

The tax is scheduled to take effect next July.

Hawley said these are very difficult times in upstate and Western New York, and the new fees and taxes don't help (listen).

To sign the petition yourself, you can contact Steve Hawley’s office at 589-5780, or click this link: Sign the Petition

(This post based on the reporting of Geoff Redick from The Batavian's news partner, WBTA.)

A new utility tax that costs consumers between $40 and $200 annually is in the cross hairs of Assemblyman Steve Hawley.

Hawley announced this week that he's introducing legislation to repeal the new 2-percent tax, which was put into effect as part of the governor's budget plan on July 1.

"Already residents are struggling to pay their utility bills, especially our seniors. This tax is a perfect example of Albany shifting the burden of their out-of-control spending in our state and I am working to relieve residents and businesses from this unnecessary tax," Hawley said.

The new tax is expected to take $557 million out of the economy and siphon it to the state's general fund. The tax would generate $2.8 billion through March 31, 2014.

Full press release here.

A Canadian-based coffee chain is planning a location on Court Street with a "European style" formula, and the company is getting tax breaks that helped entice it to Batavia, according to an announcement by GCEDC today.

Coffee Culture stands to save $37,200 in taxes on its new equipment and building improvements to 6 Court St., and the company is also seeking property tax exemptions on the increased value the remodeled property will garner.

It's a program, according to GCEDC's Chad Zambito, that is available to any business, local or out of the area, that is investing at least $50,000 in its start up.

Ken Mistler, who is opening a coffee shop at Main and Jackson, declined the same assistance primarily because the timing of the process did not match Mistler's plans, Zambito said. Mistler was unavailable for comment this afternoon.

Coffee Culture plans to spend $330,000 to renovate the 2,500-square-foot location and turn it into a "high end" cafe and eatery. Initially, the business will be corporate-operated, but will be available to a potential franchise operator. It will offer free wi-fi, a plasma TV and meeting space.

Besides gourmet coffee, the chain offers breakfast and lunch sandwiches and desserts.

Zambito gave full credit to Don Burkel at the BID for getting GCEDC involved in the process of recruiting Coffee Culture to Batavia.