With less state aid and half the federal aid of this past year, and expenses of more than $927,000, Oakfield-Alabama’s school board approved a $25 million 2024-25 budget this week that will mean a 71-cent property tax increase for district residents.

Press Release:

“It’s that time of the year again. The Majority in Albany is once again desperately trying to clean up its mess by spending money we don’t have on projects we don’t need. Lowering the amount our public schools will receive to help teachers and students rebuild after COVID and giving over $2 billion to try to solve the self-inflicted migrant crisis are just more examples of downstate interests trumping the needs of Western New Yorkers. This administration needs to be more fiscally responsible. Families across our state have to create reasonable budgets and live within their means. It’s about time Gov. Hochul and the Majority did the same.”

Assemblyman Steve Hawley represents the 139th Assembly District, which includes Genesee and Orleans Counties and parts of Monroe, and Erie counties. For more information, please visit his official website. 

With a $150 million future phase III water system and $70 million new county jail facility in progress, coupled with addressing a $3.4 million deficit that “emerged” after receiving budget requests from all department heads, it was no wonder why county Manager Matt Landers needed extra time to put his annual budget message together this year.

What was originally expected for release a week ago had to be delayed until Friday of this week, with Landers explaining along the way that he was working to make edits and needed more time with his words than he did with the budget numbers.

City Council has a choice for this year’s budget: vote to override the state-mandated tax cap or prepare to tighten the belt for significant cuts and make ends meet.

That may sound like an ultimatum, but it’s how this year’s 2023-24 budget is panning out so far, City Manager Rachael Tabelski says. She gave a budget presentation to council during Monday’s conference session at City Hall.

Healthcare, inflation, diesel fuel, employee salary and retirement costs are all on the rise, and the tax cap allows a levy increase of $154,000 when what’s needed is $450,000, Tabelski said.

Councilman Bob Bialkowski faced the elephant in the room and asked what happens if the group votes not to override the tax cap, “we raise property taxes?” Or make cuts, Council President Eugene Jankowski Jr. said.

Yes, more likely it would be the latter, Tabelski said: “That would mean significant cuts,” she said to The Batavian after the meeting.

“The tax cap is an arbitrary formula given by the state. You know, the only thought this year was that we can raise this revenue and continue the level of services that have expanded slightly in the last year or so. We have a full-time parking and recycling officer, a full-time ordinance officer, another firefighter that was contractually obligated through a contract signed before I was here,” she said. “To cover those costs, plus health care's up $457,000, retirement costs are up $300,000 … I would say this is this year's request, that the city would do everything in its power to maintain under the tax cap in the future.”

That means that, hopefully, this won’t be a recurring ask, she said. City Council would have to approve the measure by at least a 60 percent yes vote.

Can department heads dig deeper and reduce their budget requests?
“This is the bare bones budget. We've already gone through that process of every department, and they present to me, obviously, what they'd like to see in the budget, and then we cut that back significantly to get to this point,” she said. “This is to maintain the level of employees we have at fair wages and to make sure we can pay social security and health care for those employees. Those are the main drivers, plus the inflationary prices of gas, electric, diesel, fuel, and supplies and materials. So they've already done their value engineering, as we call it. But again, council has budget work sessions that go right through, line by line, each expense and discuss it. And there certainly could be changes that come from that.”

Council members will be going through the budget during the next several weeks to ask questions, make suggestions, and see where other cuts might be made. The one area where Tabelski does not recommend taking from is the unassigned fund balance. That fund is best used as a savings account for future use.

She shared that the fund has grown a bit from an overdue payment from Seneca Power Partners, which had been in arrears with its taxes.

“I will say that we had a payment from Seneca Power of penalties and interest on the tax payments. So my hope is that will really help our unassigned fund balance when we get to the end of the audit year in August,” she said. “But when I do the budget, I don't know that number. I have no way to project what that number is until we get into the audit after the budget books close.”

Other parts of the budget include an extra $275,000 “to reserve funds to prepare to bond for the police facility,” she said.

“So right now, we're putting money into reserves, like our savings, so that we're able to bond when the time comes with the hopes of not having to raise property taxes, and being able to do it within those reserve funds we're putting away right now,” she said. “Kind of like when your car payment rolls off, and you put it into your savings account, and then you lease or buy a new car. You can then use that money in your savings account to pay that new car payment.”

Despite the ominous term of "override the tax cap," the actual tax rate would remain the same, Tabelski said. That would be $8.94 per $1,000 assessed value. She is proposing to raise the water rate by 30 cents. 

Council members will be discussing the budget this month and into February before a public hearing on Feb. 27.

Top Photo: City Manager Rachael Tabelski gives an overview of the past year and 2023-24 budget during City Council's conference session Monday at City Hall; shown with department heads nearby, who have already submitted their "bare bones" budgets for consideration. Photos by Howard Owens.

“The 8 percent inflation the economy is facing challenges this budget, forcing the city to consider overriding the tax cap,” Tabelski said in a memo to City Council. “To balance the fiscal year 23/24 City of Batavia budget I recommend that the City Council of the City of Batavia consider overriding the tax cap.

“According to New York State’s property tax cap legislation, if a city government decides to adopt a budget with a property tax levy that exceeds the level set by the state, the city government must pass a local law to override that cap,” Tabelski said.

Tabelski is to provide a budget presentation and Council is expected to review and discuss her recommendations during its conference session next week. The session is set for 7 p.m. Monday in the Council Board Room at City Hall.

The proposed levy of $6.6 million would help to cover costs of a total $33.5 million budget and $19.4 general fund budget that includes a flat tax rate of $8.94 per $1,000 assessed value, a flat sewer rate, and a water rate increase of 30-cents, Tabelski said. The levy is raised from all real properties subject to taxation by the city based on the assessment roll for the fiscal year 2023-24.

She has also recommended a required public hearing to be set for Feb. 27.

Materials including salt, gas and electric are on the rise between 15 and 40 percent, while employee wages are at $400,000; retirements at $300,000; and health care just under half a million dollars, she said. Those are some of the rising costs imposing the need to ask for an override — unfortunately, not an unprecedented ask in city history.

Batavia City Council members voted to override the state’s 2 percent property tax cap just two years ago, passing a 7.5 percent property tax increase as part of the City’s 2020-21 budget. Part of the blame went to then Gov. Andrew Cuomo for withholding some of the video lottery terminal money from Batavia Downs revenues, though this year a similar portion was earmarked for the police department’s request for guns and equipment.

Other sections of the budget are up for discussion during future work sessions slated each for 6 p.m. on Jan. 31 for Public Works, general government and administrative departments; Feb. 7 for police and fire departments; and Feb. 9 for an as-needed session.

There is time allotted for public comments during this meeting. Speakers need to sign up prior to the start of the meeting.

File Photo of City Manager Rachael Tabelski by Howard Owens.

Genesee County Legislature acted on a final 2023 budget proposal on Monday that won’t be exactly as county Manager Matt Landers initially promised.

There was a slight amendment made last week that will affect the tax rate, albeit slightly.

“I just received word a half hour ago that the assessments changed the tax rate by a penny,” Landers had said to the Ways & Means Committee.

Although legislators would have liked the penny difference to at least go the other way, it will increase the tax rate to $8.45. The total levy — money to be raised through property taxes —  is unchanged at $32,080,762, which reflects a 2 percent levy increase. That levy increase is within the state-mandated levy limit, or tax cap, Landers said.

How will that affect county taxpayers? The rate will be $8.45 per $1,000 assessed value versus $8.44 as initially declared. That will be a decrease of 73 cents per $1,000 assessed property value compared to the current rate of $9.18. To determine your total tax rate, multiply the property value in 1,000 increments (for example, 90 for a $90,000 home) by the tax rate.

Because property assessments have increased for many folks, it’s not a fair comparison to use a typical assessment by each the former and current tax rate for the difference in tax payments from this year. So if your property value was increased, you may not see a decreased total due to that larger number multiplied by the lower tax rate.

For example, a home assessed at $90,000 at the current rate of $9.18 is $826.20. If that home's value has been raised to $100,000 at the lower rate of $8.45, the total will be $845.

To read prior coverage: Genesee County proposes budget with 2 percent levy increase

File photo of Genesee County Manager Matt Landers, by Joanne Beck.

Genesee County legislators knew one thing for sure after Wednesday’s budget presentation, Chairwoman Shelley Stein says.

They weren't yet ready to say how the Legislature was leaning toward a proposed $162.5 million budget with a 2 percent tax levy increase.

“We have one more budget session and we’re going to use it,” Stein said after the presentation and related public hearing.

No one spoke up about the budget during the hearing. County Manager Matt Landers said it was the first budget in quite awhile that didn’t focus on the impacts of COVID. When drafting a budgetary plan — which he did with assistance from his support staff and the treasurer’s office — he looks at the net impact of all decisions.

“That’s what drives my red pen,” Landers said. “When I meet with the department heads, I want to know what the net impact of the county taxpayer is.”

There was a clear understanding that a tax cap override was “off the table,” as he worked with department heads to ensure that all spending was out of necessity, he said. Out of a $32 million tax levy, $25 million of that is for state mandated services, he said.

Of course, the elephant in the county room has been the new county jail, with a price tag of $70 million and a 30-year debt service payout schedule. Landers hasn’t been shy about discussing it, or admitting that it’s a huge chunk of money — about $4 million — to pay off each year.

“We’re trying to be smart, and not shock the system all at once,” he said.

The county is paying not only for the new facility expected to be ready in 2024, but is also designating $300,000 for the latter part of next year for eight new jail-related positions that include six correctional officers, a mechanic and a deputy jail superintendent.

Other full-time positions created in this proposed budget include an investigator and emergency services dispatcher for the Sheriff’s Office, a position in the Highway/Facilities Department for the jail, and a position in the Health Department (to be grant-funded).

“Some key investments that are being made in this budget, so there's public safety positions, there is the investigator in the Sheriff's Office. This is to better serve the public,” Landers said. “It was very bluntly said when talking to the sheriff when he was proposing this, there is an expectation when there's crimes committed in this community that our investigators can investigate these crimes in an inappropriate and timely fashion. The caseloads are starting to build up. So this is our response. It's a public safety request and a need in our community, and I have 100 percent of the Legislature’s support.”

He highlighted factors that will need to be monitored during the next fiscal year, such as sales tax revenues that are largely dependent on gasoline, and can be “volatile.” He also questioned the future and what may happen to those sales tax benefits once electric cars become more the norm and people aren’t buying gas as often.

An ongoing water project will mean spending an estimated $150 million for the next phase three on the horizon, though with labor, supply chain and inflation issues, that number could be upwards of $160 or $170 million, he said. Two union contracts will be coming up for negotiation next year as well, he said.

One part of the process that was not a challenge involved department personnel, he said. They didn’t balk at his suggestions or otherwise make the job more difficult.

“I cut from every single department,” he said.

Stein pointed out that the county’s public services — an area of significant focus in the budget — do come at a cost.

“We are a very conservative county. There is a continual balance between our quality of life here and the cost to our taxpayers. And the legislature that serves as an entire body keeps that balance right at the front of our minds,” she said. “And also, you will see that in our actions and in our questions, and in our commitment to providing the highest quality of life at a cost that is affordable. And we don't apologize for that.”

The levy increase would mean a tax rate decrease of 8 percent, going from $9.18 to $8.44 per $1,000 assessed value. That is due to the overall property assessment increases. 

Legislators have until Nov. 21 to discuss the financial plan and vote to adopt it. Feedback and comments are always welcomed, Landers said.

An “all funds” budget of $162,567,180 is an increase of nearly $3.6 million from the current budget, with an operating budget of $124,247,459 — at a hike of $4.88 million more than the current 2022 budget, Landers said.

New jail debt service — a nearly $4 million yearly tab for the next 30 years — includes the construction, labor and materials of the new facility on Route 5 in the Town of Batavia, and eight new hires needed at the future site.

The Batavian asked Landers about prior statements made by county management about how the new jail would not impact taxpayers.
The proposed 2 percent tax levy increase includes other rising costs, Landers said.

“The debt service for the new jail was not expected to cause an increase in county property taxes, which it isn’t,” he said. “The percent levy increase in the budget is due to a number of factors, including NYS retirement cost increases, wage increases, inflationary increases on a variety of commodities utilized by the County Highway Department and some operational increases at the jail due to hiring new positions.”

Those positions include six correctional officers and a new deputy jail superintendent, two new positions at the Sheriff’s Office aimed at “improvements in public safety,” and a new public health education coordinator position (funded with increased state funding).

What is your calculation for those new positions for the jail, including salary and benefits?
Landers provided numbers for the 2023 budget year, which totals $286,047. However, that covers three correction officers effective July 1, and the other three officers and a deputy jail superintendent to begin on Oct. 1, which means salary and benefits for three to six months of 2023.

A public hearing has been set for 5:30 p.m. Wednesday in the legislative chambers at the Old Courthouse between Main and Ellicott streets, Batavia. Typical of such hearings, this will include a presentation of the budget, Landers said, “but we will welcome feedback from the public.”

“Feedback provided by the public will absolutely be taken into consideration before the Legislature adopts the final budget later this month,” he said.

A tax levy increase of 2 percent and the assessment increases for most properties will mean a decrease in the actual property tax — from $9.18 to $8.44 per $1,000 assessed value. If your property has increased, that may not translate to an overall property tax decrease. For example, a $100,000 home at $9.18 = $918, whereas a home now assessed at $120,000 at $8.44 = $1,012.80.

The county was not directly responsible for raised assessments, as each municipality conducted its own assessment process, and Landers points to the fact that county taxes will go down. But it’s worth noting the increased assessments for many folks, and how that will affect your future county tax bill.

The Batavian asked if this is likely the trend moving forward — increased tax levies to pay off the long-term debt for the jail. While he can’t say for sure about future budgets, Landers is aware of the county’s ties to “a lot of state mandates of which we have little control.”

“And when there are changes made by the state, we must react accordingly,” he said.  “The 2021 budget kept the levy flat and the 2022 budget is increasing the levy 2 percent. The County faces inflationary cost pressures like every other organization, and when inflation is running above 8 percent, it is a challenge to keep our expenses flat.

“The County hopes to generate revenue starting in the 2024 budget from boarding in inmates, which will help offset operational costs at the County Jail.”

During a recent county Legislature meeting, supervisors from Pembroke and Bergen appealed to legislators that their municipalities could use more revenue — something they felt has decreased due to a 40-year sales tax-sharing agreement between the county and city.

Why should they accept the fact that they are seeing less revenue now as the county receives more? Genesee County is sharing $10 million with towns and villages every year for the remaining term of that agreement, Landers said.

“The County has a number of countywide challenges that will need this increase as we move forward on developing solutions,” he said. “In addition to funding a $70 million dollar jail, the county is working towards a countywide broadband solution to ensure every home is connected; the county is working towards Phase 3 of the countywide water system, which carries a $150 million price tag; and we are actively working to help implement some of the solutions identified in the (Municipal Resources Inc.) study.

“With that said, the county absolutely hears the voices of our town and village leaders, and I am hopeful that we can find creative ways to have meaningful positive impacts on their municipal budgets.”

A positive step, he said, was being able to eliminate election chargebacks and reduce workers comp costs by 60 percent in the 2023 budget.

Other budget challenges include increases of more than $700,000 for state retirement costs; state mandates to fund Medicaid, Probation, the new jail, the Public Defender’s Office, assigned counsel, Social Services programs, Mental Health, Early Intervention and preschool services, he said.

With everything proposed, is it all in dire need? Is there anything the county can delay for now?
Landers emphasized that “we DO NOT incur an expense before we need to.”

In fact, county infrastructure has been neglected over the years, he said, and “we have deferred maintenance to the point we end up paying more in the long run.”

“The perfect example is the front of the old Sheriff Administration building.  We had an estimate to repair the front of the building, where large stones were literally falling off the façade, five years ago for approximately $500,000,” Landers said. “We deferred this maintenance and are now making these needed repairs for over $1 million.” 

This 2023 budget includes an ongoing commitment for increased funding by $1 million for roads and bridges, Landers said in his budget message. Deferred maintenance of these structures has gotten to a critical point, “and the cracks are showing,” evident by recent bridge closures, he said.

The proposed budget includes $2 million of unappropriated — not designated — fund balance, and in addition to the new jail, an ongoing water project is clearly on the county’s priority list.

“The county is embarking on two of the largest capital infrastructure projects in its history,” he said of the $70 million jail and $150 million water system project. “These two projects are going to weigh heavily on decisions made by the Manager’s Office and County Legislature for the foreseeable future, and is evident in the 2023 recommended county budget.”

After Wednesday’s hearing, the budget will go to the Legislature for consideration and eventual vote this month. Landers is pleased that the financial plan is under the allowable tax cap, he is also aware of its ramifications.

“I am not blind to the significant impact the proposed tax levy has on the citizens and businesses of Genesee County,” he said. “My time as county manager has only just begun, and I pledge to work with local governments, community not-for-profits, the business county and local citizens on ways to spend these precious resources as efficiently as possible.”

Click to read the entire Budget Message

With no discussion or questions after hearing the proposed 2022-23 budget presentation, board members  Alice Benedict, Jennifer Lendvay, John Marucci, Chezeray Rolle, Barbara Bowman and Michelle Hume cast yes votes. Member John Reigle was absent. The 1 percent tax levy increase means a total of $19,688,898 to be raised through local property taxes. 

If approved by public vote in May, that will push the tax rate from $19.23 per $1,000 assessed value to $19.42. The increase of 19 cents more per $1,000 would result in an extra $19 for a home assessed at $100,000, or a total of $1,942 in property taxes. 

Business Administrator Scott Rozanski walked the board through a brief explanation of how retirements, fewer buses and grant funds helped to lower the preliminary budget of $55 million by $877,225. The initial budget increase from the current year was 5.5 percent, which was lowered to 5.19 percent, Rozanski said.

The related tax levy increase of 1 percent falls under the tax cap of 1.62 percent, which is what the board asked for, President Alice Benedict said.

“Thank you for getting us to a place we requested,” she said. “You’ve done a lot of work getting us to a 1 percent.”

The Batavian has emailed each board member — a publicly elected figure — for comments about the budget and reasons for his/her yes vote since not one offered comments during the meeting. Even though New York State’s Open Meetings Law “generally permits you to converse with your fellow board members outside of board meetings,” according to the state Board of Education Handbook, “you should ensure that such informal chats do not substitute for full deliberation in a public meeting.”

A public budget hearing will be at 6 p.m. on May 5, and the vote is on May 17. 

Batavia City schools board members have quite a full agenda for this week’s meeting, beginning with a public hearing about spending reserves for a roof repair.

There is to be a presentation about the $140,000 tab, to be taken from district reserves, for a Batavia High School roof repair. The public will be given time to voice questions, comments and concerns before the board is scheduled to vote on the work later in the meeting. It is set for 6 p.m. Thursday at the BHS library, 260 State St., Batavia.

Other agenda items include a review of the tentative 2022-23 budget, followed later by a vote to adopt the $55 million financial plan. The most recent preliminary budget in March included a nearly $3 million increase or 5.75 percent more than the current budget. The tax levy was at $20.57 million for a 5.5 percent increase, overriding the tax cap levy by $756,449. 

Business Administrator Scott Rozanski is expected to go over the proposed budget up for board vote during Thursday’s meeting. The preliminary plan included spending increases of $692,575 for teacher/administrative support salaries, $481,970 more for support salaries and nearly $1 million more for fringe benefits. Those total increased numbers are $19.9 million for teacher salaries, $6.5 million for support salaries and $12,306,449 for fringe benefits.

Total salaries have gone from $19,312,386 in 2011-12 to $26,440,590 in 2022-23, or about $7 million more in the last decade. Administrative salaries have risen from the superintendent in 2015-16 at $148,92 to $165,000 currently, and for business administrator, it has increased by $40,000 in the last six years, from $123,913 in 2015-16 to $163,488. The role of department chairman has also been increased from $64,000 to $85,800 in that same time period. 

There are a few decreases in spending, such as $100,820 less for operations/maintenance, $21,248 for textbooks and a $1.15 million decrease in debt service payments. 

The packed agenda also includes time for the public to be heard about matters other than the roof repair, and:

• Presentations from Community Schools Coordinator Julia Rogers with an update and Counselor Julie Wasilewski on a Jackson Primary project.
• An Energia Johnson Controls energy performance contract update.
• Reports from each the superintendent and student ex-officio.
• Votes on resignations and appointments.
• Contracts with the Batavia Administrators’ Association; Batavia City Police Department; Genesee County Department of Social Services and the Student Transformation and Rehabilitation (STAR) program; Thomas Ramming Consulting, Inc.; Gates Chili Central School District’s Health Services; Dwyer Stadium; Campus Construction Management; Genesee Valley BOCES; GLOW YMCA; University at Buffalo Speech, Language and Hearing Clinic; and a revised contract with Kimberly Gingrich. 

Photo: Batavia City Schools Business Administrator Scott Rozanski is on tonight's agenda to present a proposed 2022-23 budget for the board's vote. File photo in 2022 by Howard Owens.