subscribesubscriber servicescontact usabout ussite mapBuy a Classified
Tue, Nov 10 2009 

Published: October 01, 2008 10:14 pm    print this story  

CITY BUDGET: Mayor's spending plan holds line on taxes

Shot of surplus state aid keeps taxes steady

By Mark Scheer
E-mail Mark

Niagara Gazette

Mayor Paul Dyster’s proposed 2009 operating budget represents an increase in overall spending of more than $3 million but maintains stable tax rates for home and business owners thanks in large part to a shot of surplus state aid.

During a special meeting Wednesday at City Hall, Dyster presented his first budget as mayor, an $80.2 million plan that includes an increase in spending from 2008 of $3.69 million, or about 5 percent. The spending plan includes $3 million in revenue from a surplus fund of aid allocated to the city by the state for tax stabilization purposes. As a result, the tax levy, or the amount to be raised through property taxes, remains at its 2008 level of $27.3 million. In keeping with directions from the City Council, Dyster’s budget includes a 10 percent adjustment in equalization for the city’s homestead and non-homestead tax rates. Under the mayor’s proposal, homeowners would pay $16.89 per $1,000 of assessed value, an increase of 0.01 percent from 2008, and business owners would see a slight tax increase to $32.92, up 0.005 percent from this year.

Dyster told council members that while he’s pleased to be able to present a budget that does not increase the tax levy, he’s also concerned about how financial uncertainties at the state and national level will impact the city and its taxpayers in 2010 and beyond.

“The presentation of this budget comes at a time of tremendous turmoil in the national and state economies — a stressful situation that has impacted our finances in significant ways,” Dyster said. “In spite of this, I am happy to report that we have been able to balance the budget without increasing the tax levy. The nature of the times demand nothing less. At the same time, I cannot help but caution that what we are now experiencing may be the calm before the storm.”

For the second time in two years, the city’s tentative budget calls for a sizeable shot of revenue from a surplus fund of state aid known as Aid Incentives to Municipalities, or AIM. Last year, former Mayor Vince Anello used $3 million of what was then a $5.7 million surplus in AIM aid to offset spending hikes and, consequently, allow for a slight decrease in the tax levy. Dyster’s 2009 spending plan relies on another $3 million shot in AIM funding to be drawn down from the city’s 2008 AIM balance of $5.99 million. For 2009, Dyster said the fund balance is projected to be $3.7 million.

Brown said dipping into AIM money again this year, while acceptable, is a practice the city cannot afford to continue year after year. While an AIM funding proposal endorsed by former Gov. Eliot Spitzer projected four straight years of aid increases for Niagara Falls, Brown cautioned that, given the uncertainties in the state’s economy, there are no guarantees the city’s level of aid will be maintained moving forward. Continued use of surplus funds inevitably leads to the depletion of those funds, Brown said. Without increased revenue or new revenue streams beyond 2009, Brown said city leaders should expect to face the unpleasant choice of having to make potentially painful cuts in spending or equally unpleasant increases in property tax rates.

“You are going to have to begin to make some tough decisions,” she said.

Dyster said the proposed increase in spending is almost exclusively the result of non-discretionary expenses, saying all other costs were reduced or frozen at 2008 levels.

“Wherever it was possible to eliminate vacant positions, the sacrifice has been made,” he said.

Dyster said a number of economic uncertainties played a role in the framing of his tentative spending plan, including rising costs for fuel and employee health care, contractual raises for employees and expenses related to the construction of the new public safety building. In addition, Dyster said, the city’s revenue stream was impacted by a state change in the special franchise assessment program, which resulted in a requirement that forced the city to write off more than $10.4 million in assessed valuation, or 2.6 percent of the total value, on utility companies and several other non-homestead taxable properties.

Dyster noted that there are also several factors working in the city’s favor moving forward, including a strong Canadian dollar which bodes well for future sales tax receipts, a relatively stable local real estate market and the promise of new investments downtown and in the city’s industrial sector.

“The good news is that in spite of the many shocks to the state and national economy, the overall economic outlook here in Niagara Falls is bright,” Dyster said.

Dyster said his administration will continue to use casino revenues for equipment purchases and to rebuild streets, sidewalks and address other critical infrastructure needs. He said the city also will use funding from the Niagara River Greenway to support the development of waterfront parks, trails and heritage tourism sites.

“If we have the discipline and dedication to stick to the future we have envisioned for ourselves, better days do indeed lie ahead,” Dyster said.

City Council Chairman Sam Fruscione said he was pleased Dyster presented a plan that does not add to the tax burden already endured by property owners in the city.

“We, as City Council members, don’t like paying high taxes and we know the people in Niagara Falls don’t like paying high taxes either,” Fruscione said.

Council members will take a few days to review the mayor’s proposed budget before holding a series of budget meetings of their own. The first budget hearing will feature is scheduled to begin at 4 p.m. Wednesday and will include presentations from police Superintendent John Chella and Fire Chief William MacKay. By law, the council must return the budget with any changes to the mayor by Dec. 1. After the council returns its revised budget, the mayor has 10 days to veto any of the changes. Council members have the final power to override any of the mayor’s vetoes before the budget is formally adopted by Dec. 15.

print this story  



autoconx
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Premier Guide

Find a job! Find a Home! Find a car!

Featured Jobs

FLOOR ASSISTANT
Floor asst. needed for approx. 30-35 hrs/wk in a podiatry office, no exp. nec., will train, call between 12-2:30 pm for ...>MORE

Assistant Director
ASSISTANT DIRECTOR
Alumni Relations (ft) sought by the Alumni Relations Department of Niagara University, a private
...>MORE

Nursing
NURSING. ElderWood Senior Care, "Care Without Compromise". We invite you to stop by and learn how you can become part of...>MORE

Certified Pharmacy Tech's & Certified Medication Tech's
Certified Pharmacy Tech’s & Certified
Medication Tech’s Competitive wages. Call Lisa McKensie Ransomville Manor 79
...>MORE

Instructors
Join Our Team!
Would you like to work on a top performing team who is ranked 17th in the nation and have the opport
...>MORE

Activities Director
Activities Director FT AS Degree and /or or 3-5 yrs exp working in adult home. Send Resume To: Ransomville Manor at 35...>MORE

Customer Service
Customer
Service
Immed. F/T position.
Includes weekends. Must be customer
oriented, computer
...>MORE

Nursing
NURSING. RN's. Up to $7500 Sign on Bonus. Thinking of a change? Consider Mount St. Mary's Hospital. Various positions av...>MORE

Nurse Practitioner
NURSE Practitioner, PT including one evening, resume 533 Meadow Dr, Suite 2, N. Tona, NY 14120 or fax 693-4807...>MORE

RN
RN, Director of Quality / Education: to plan, organize, develop and direct all staff development and CQI programs. North...>MORE

See all ads

Feature Autos

Ford 1999 Ranger
FORD 1999 Ranger, 5 speed, 130K, fair condition, $2000 or best offer, 716-310-0531...>MORE

Chevy 2007 Impala LT
CHEVY 2007 Impala LT
25,800 mi, ext. warranty
Exc. Cond, $16,500
297-2199
...>MORE

Pontiac 1999 Montana
PONTIAC 1999 Montana 57,000 original miles, full options, like new, $3300, 694-0441...>MORE

Dodge 2001 Neon
Dodge 2001 Neon 4 dr, auto, a/c, new tires, c/d no rust, inspected, $3900. white 860-2854...>MORE

1995 Plymouth Neon
Plymouth ‘95 Neon, 4 cyl, auto, 4 dr, exc in & out, 1 owner, only 56k orig. mi, no rust. $2195. 523-7102 ...>MORE

Ford Windstar 1998
FORD 1998 Windstar $1000 or best offer.
298-5220
...>MORE

1996 Mazda L3000
MAZDA L3000 pick-up 1996, 6 cyl, runs good, new tires & battery, just inspect., $1500. 284-7529....>MORE

Mercury 1999 Grand Marquis
Mercury ‘99 Grand Marquis 4 dr, leather, all options, 49k org mi., showroom cond. $6000. 860-2854, ...>MORE

Chevy 2003 Impala
CHEVY 2003 Impala
25,600 miles, loaded
Exc. Cond. $10,000/bo
297-2199
...>MORE

1991 Dodge Caravan
DODGE 1991 Caravan, exc body, runs great, full power, needs TLC. $1200 or BO. Call 754-4608....>MORE

See all ads





 

Community Newspaper Holdings, Inc.CNHI Classified Advertising NetworkCNHI News Service
Associated Press content © 2009. All rights reserved. AP content may not be published, broadcast, rewritten or redistributed.
Our site is powered by Zope and our Internet Yellow Pages site is powered by PremierGuide.
Some parts of our site may require you to download the Flash Player Plugin.
View our Privacy Policy
Advertiser index