Niagara Falls councilmembers have reduced portions of the proposed 2008 budget by $217,025, but it won’t result in a change in the tax rate for property owners.
Instead, the monetary reductions approved Tuesday will be rolled into a general contingency account to be used at Mayor-elect Paul Dyster’s discretion when he takes office on Jan. 1. The total amount is expected to increase following the council’s budget worksession scheduled for Thursday.
“What this contingency account will do is give the new mayor some flexibility,” Councilman Chris Robins said, adding the practice is not common in the city. “We’re in probably the best financial position we have been in a while, so we’re able to do something like this.”
Mayor Vince Anello presented his proposed $88 million operating budget in October. The plan represents a $6.2 million spending increase but utilizes revenue from the power authority and casino and a surplus of state aid to slightly reduce taxes. Homestead rates will roughly stay the same, but non-homestead owners will see a 1.9 percent decrease.
The budget recommends significant raises for eight mayoral appointees, including a $24,000 jump for the city administrator and an additional $16,000 for the corporation counsel. However, councilmembers were quick to attack those lines Tuesday. They reduced the administrator’s proposed increase by $15,000 and counsel’s proposed raise by $7,000.
Anello, who has initial veto power on any of the council’s budget resolutions, was not happy with Tuesday’s action.
“It’s another juvenile attempt to criticize a very good and solid budget,” the mayor said.
In all, the council approved more than 20 line reductions amounting to $217,025. After being rolled into a contingency fund, the money could be spent at Dyster’s discretion for salary increases as he builds his staff or to fulfill requests from department heads. If the account isn’t depleted by the end of 2008, the money will shift to the fund balance.
Also Tuesday, the council removed $222,000 from the fire department’s overtime line and placed it into a contingency fund that also includes $365,000 to address contract buyouts in the department. The combined $587,000 can be tapped into by the fire chief to cover needed overtime costs as they arise, but councilmembers are hoping the contingency fund will not be depleted at the end of the year.
Fire Chief William MacKay said he didn’t have a problem with switching the overtime money into a contingency account, adding it will give him more flexibility to deal with personnel holes.
“The council understands the predicament we’re in,” he said.
Local News
NIAGARA FALLS: Council cuts budget lines by $217K
Reductions will become “discretion” account for new mayor
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