BUDGET WORK
Spa City outlines proposal
The Commissioner of Finance presented the 2019 proposed city budget Tuesday night at the Saratoga Springs City Center, outlining the 1.8 percent budget increase.
The budget, which includes a proposed 0.38 percent property-tax increase, must be adopted by Nov. 30.
The lighting strike and subsequent water damage, which forced City Hall to move operations to other areas of the city, played a role in the budget.
“I must admit that lightning striking City Hall, and the resulting extensive water damage to every floor, was not a scenario I envisioned facing while in office, and especially not the day after requested budgets were due,” said Madigan. “This incident has impacted every city department, as well as every resident who interacts with the city, and the timing of the strike has resulted in a 2019 Comprehensive Budget that focuses on the city’s immediate demands, while allowing flexibility as the city determines our steps in the near future.”
The 2019 General Fund Comprehensive Budget is $47 million, compared to the $46.1 million 2018 budget. Madigan explained the 2019 General Fund Requested Expenses came in at $50.2 million, an increase of 8.8 percent, while 2019 General Fund Requested Revenues totaled $43.9 million, which assumes a stable tax rate and no usage of Fund Balance. Madigan said that $6.3 million difference was untenable, which resulted in the budget eliminating many of the requests submitted, such as new hires and vehicles.
Normally, the mayor presents a Capital Budget in September, but due to the water damage to City Hall, Mayor Meg Kelly did not present the Capital Budget. The City Council instead waited to combine the capital needs of City Hall with the project outlined by the mayor’s department for a reprioritized 2019 Comprehensive Budget, of which $8.2 million, including $5.7 million for Water and Sewer, which are funded through their own revenues. Eight of the nine proposed non-water and non-sewer projects include a fire engine and an ambulance replacement; the $1.2 million Loughberry Lake Dam Embankment Stabilization and Spillway Project; $3.4 million for city building and facilities repairs
and upgrades and utilities for the Department of Public Works and recreation enhancements, all of which are bonded.
The property tax makes up 34.1 percent of the city’s revenue source. Madigan explained the assumed property tax increase of 0.38 percent is based entirely on an increase in the Debt Service Fund Levy. The Comprehensive Budget as currently proposed shows for homes accessed at $250,000 to increase by $5 compared to 2018 city taxes paid.
A highlight from Madigan’s presentation was the strength of the sales tax report as of mid-September, showing a 9.7 percent increase over last year. The 2017 Sales Tax total was down because of 2015 and 2016 audit findings by the state. Madigan said if the city collects a similar amount in sales tax for the remainder of this year as the city did in 2017, the sales tax will be $12.5 million. The 2019 Comprehensive Budget expects a 2 percent increase from the 2018 estimate.
Madigan will host budget workshops throughout the month. The budget workshop schedule can be found on the city’s website.