Taxes, layoffs part of Spa City plan
Public works chief says he’ll fight proposed cuts
The city is headed for a 6 percent property tax increase, Jan. 1 layoffs and a 10 percent pay cut for the full-time employees who are spared.
Finance Commissioner Michele Madigan, who submitted her 2021 budget proposal to the City Council Tuesday, said the plan reflects the “realities of the COVID -19 pandemic economy” and means significant spending cuts.
“I believe and hope that we all share a mutual goal of keeping as many jobs intact as possible,” Madigan said in a released statement. “This reduction is a good investment towards that goal.”
That reality, which includes 15 percent drop in sales tax income, a 34.6 percent dip state aid and a 50 percent decline in state VLT aid, is forcing a $6.8 million reduction in the city ’s annual budget, down to $41.9 million in 2021.
Much of the loss in revenue will be made up with a property tax hike, Madigan's first in her nine years on the council. She proposed an increase from $6.07 to $6.43 per $1,000 assessed value inside district and $6 to $6.37 per $1,000 outside. A homeowner inside with a $350,000 assessment would pay $2,250.50 a year, while a home at that assessment outside of the city would pay $2,229.50. The increase should bring in $1.3 million in 2021.
The tax increase busts the city's tax cap, set by the state at around 1 percent, Madigan said. The move to override the cap was unanimously approved by the council in September.
Madigan plans to reduce public works manpower by 25 percent. At Public Safety, there will be a 15 percent reduction in police and firefighters. The fire department assistant chief position, one of three, will remain unfilled.
“Further additional layoffs are not off the table,” Madigan said.
Commissioner of Public Works Anthony “Skip” Scirocco, said the cuts will decimate the department's ability to function.
“The comprehensive budget brings funding for DPW back to 2011 levels, setting this department back a decade,” Scirocco said in a statement. "This comprehensive budget attempts to address deficits by reducing emergency snow removal services, storm and flood response, road maintenance, water and sewer infrastructure upkeep, management of the urban forest, yard-debris pickup and the beautification efforts that make this city a worldclass destination. I will fight to make sure that doesn’t happen.”
Commissioner of Public Safety Robin Dalton said she doesn't yet know how many people will be affected by the 15 percent cut in staffing in the department of 202 people, which also includes code enforcement officers and crossing guards. She did say she wasn’t surprised by the move and she is not yet panicking about layoffs.
“I have a lot of creative ideas in terms of coming up with money to patch some holes,” Dalton said. “I'm not ready to go public yet, but I'm working behind the scenes that could bring in valuable revenue and could push off the possibility of layoffs.”
Madigan said those laid off would be able to come back if the financial outlook for the city improves, particularly if the federal government comes up with a relief package.
Also getting cut are the nonprofits that the city supports. Madigan is unsure as to when the Saratoga Race Course or the Saratoga Performing Arts Center will reopen – both major revenue generators.