Lockport Union-Sun & Journal Online

Local News

November 2, 2011

Budget semantics: Cut or hike?

Lockport officials debate whether levy or rate is key

LOCKPORT — So long as a majority votes to override the state’s so-called tax cap, the Common Council will also vote tonight on adoption of a 2012 city budget that calls for a 3.4 percent tax rate reduction.

There were some disharmony in the Council meeting room Tuesday night, as the aldermen convened to go over the proposed $23.2 million budget one more time, line by line, with an eye on cuts.

Fourth Ward Alderman Andrew Chapman and 2nd Ward Alderman Jack Smith were pushing for more bigger line cuts, in areas including staffing, because while the tax rate may be decreasing by 52 cents per $1,000 of property value, the year-over-year increase in the tax levy — the amount of city spending being covered by property tax — is still 9 percent.

The state is now requiring municipalities to adhere to a 2 percent levy increase, or put the choice to “override” the cap up to a vote in front of the public. Four of six aldermen have to vote “yes” on the proposed local law, after a public hearing at 6 tonight in Council chambers, or the Council can’t hold a vote on the proposed budget.

Smith takes exception to Common Council President Richelle Pasceri’s use of the phrase “tax cut,” suggesting there’s no such thing when the tax levy is rising. The rate may be lower, but the levy, $10.5 million, is almost $900,000 more than in 2011.

“For most people in the city, this will mean an increase in their tax bill (I know it will in mine!),” Smith wrote in a Monday e-mail to his fellow aldermen. “Another budget will be adopted that contains no meaningful reform to ensure a fiscally viable future for our city and residents.”

Smith’s e-mail urged line item cuts including: elimination of the community services aide in Lockport Police Department, a full-time position filled by a civilian, Mark Sanders, who’s a liaison between police and residents; ending the LPD-staffed School Resource Officer position that’s half funded by Lockport City School District; scrapping a commitment to hire a full-time housing inspector; and zeroing out city funding for the professional stage used by performers in the summertime Canal Concert Series.

Those line cuts would reduce the 2012 levy by close to $200,000.

They wouldn’t get the city under the tax-cap limit — but they would diminish services to residents, and when the tax rate is decreasing that’s not necessary, Pasceri said.

“Every single dollar we allocate represents a person and a service they offer, and I do not believe residents are clamoring for layoffs or service cuts; if anything, they want more services,” she said. “With this budget we are maintaining services, there are no layoffs, and there is a tax cut. This, to me, is a win-win for this community.”

Smith raised all but the proposed School Resource Officer cut in person at the Tuesday work session and got little or no support from the rest of the Council.

Several aldermen, including at-large representative Joe Kibler, said they were annoyed by Smith’s “eleventh hour” proposals, as Smith hadn’t raised them earlier in numerous budget workshops.

“He pulled this stunt last year too, when he said the day before we voted on the (2011) budget that he wanted to lay off 10 police officers,” Kibler said. “To me, he sounds like a defeated candidate trying to go out in style.”

Even Smith’s usual ally, Chapman, didn’t support a few of Smith’s proposals, although he did argue that “conceptually,” the Council should be prepared to start making job cuts now, instead of pushing the task off to next year.

To the majority’s refrain, that job cuts could be considered in 2013, after review of the possible impacts and upcoming contract talks with five employee unions, Chapman asked, “Why not now? There’s a (9) percent spending increase on the table; taxes are increasing. Start the cuts now, let’s go for 10 percent.”

“You don’t sit down the day before the budget (vote) and decide how many people to cut. That’s irresponsible,” Mayor Michael Tucker countered.

Chapman also suggested the Council scrap the deal that Tucker struck with four unions to defer annual replenishing of members’ health savings accounts to early 2013. It’s merely a $450,000 “loan” that’ll come due in the 2013 budget, and it makes the Council indebted to the unions as they’re heading into contract negotiations, he argued.

The loan payment may not come due, if administration can negotiate reduction or elimination of the health savings accounts before 2013, Tucker said.

Declining the deferment, and then blaming the unions for the sudden budget hole, would set a “bad tone” for contract negotiations, retiring 3rd Ward Alderman Flora McKenzie warned.

Unilateral benefit reductions, and layoffs, have come back to haunt City Hall in the past, retiring City Clerk/Budget Director Dick Mullaney added.

“Dollar for dollar, you’re paying their wages in unemployment and (history shows) they go to court and get their jobs back anyway, so you’re not saving any money,” he said. “It is far better for you to negotiate” benefits and job changes.

Of city spending on the concert stage, rather than cut the $79,200 line outright, Chapman suggested the Council rethink the series frequency and promoter, or consider earmarking bed tax money that it’s been paying Niagara Tourism & Convention Corporation instead. Tucker said he’s not necessarily opposed to redirecting bed tax — it’s true, NTCC never has spelled out exactly what Lockport gets in return for its $85,000 annual investment in Niagara USA promotion — but he disagreed the change could be made immediately. Local tour operators could pay a price if the city pulls out; and their counsel on the effects, or at least fair warning the city is pulling out, is necessary, he said.

As of today, the proposed 2012 general budget drives a tax rate of $14.73 per $1,000 of assessed property value. The 2011 rate is $15.25.

Text Only
Local News
  • LPT 120528 Parade 2 Paying Respect

    May 28, 2012 4 Photos

  • Sense of resignation escorts AES tax pact

    May 24, 2012

  • Town considering WNYLC's request

    May 23, 2012

  • Palace, Hartland get Greenway funding

    The Historic Palace Theatre and the Town of Hartland both were cleared Tuesday to receive Niagara River Greenway funding for improvement projects.

    The eight-member Host Communities Standing Committee voted unanimously to approve funding requests of $151,000 for the Palace and $244,000 for Hartland, which is planning a multi-phase town park enhancement project.

    May 22, 2012

  • Erie Canal photo contest underway

    The seventh annual Erie Canalway photo contest is under way.

    Entries are being accepted now through Sept. 7. Winning photos will be published in the 2013 Erie Canalway calendar.

    May 22, 2012

  • Jobless totals drop slightly

    Unemployment in the Lockport area decreased slightly last month, but it wasn't because more people are going back to work.

    The New York State Department of Labor reported Tuesday about 1,000 city residents were without a job in April, the fifth straight month with over 1,000 unemployed. That was down from the 1,100 it reported in March, however, the number of employed stayed the same at about 9,700 people.

    May 22, 2012 4 Stories

  • 070_Salmon_Kid.jpg Fishing for 'Ultimate' perks

    Olcott teaming up with Ontario town in running for Canadian equivalent.

    May 22, 2012 2 Photos

  • Sprinkler work coming

    Piping in high school fire sprinkler system will be addressed in July.

    May 22, 2012

  • Willow Street victim identified

    The victim of a self-inflicted gunshot wound on Willow Street  on Saturday was identified by Lockport Police as Richard Boye, 46.

    May 22, 2012

  • 120517travelagencies2jpg.jpg Cutting the travel time

    For the most part, there is a lot of planning that goes into traveling. Some like to handle the details on their own, making arrangements on the phone or using travel websites to book hotels, planes, vehicles and so on.

    But lately, working with a travel agent is becoming more popular.

    May 21, 2012 1 Photo

Featured Ads
Front page
AP Video
Beryl Makes Landfall on Florida Coast UN Blames Syrian Forces for Shelling Houla Raw Video: Gay Protest Blocked in Moscow Vatican in Chaos After Butler Arrested for Leaks Jimmy Carter Endorses Egypt's Election Results Biden Addresses West Point Graduating Class Dozens of Children Killed in New Syria Attack Raw Video: Activists Allege Massacre in Syria NJ Man Charged With Murder in Death of Patz Support, Fun for Kids of Fallen Soldiers at Camp Fugitive Penguin Caught, Returned to Aquarium 50 Years Later, Underground Fire Still Burning Light Show Transforms Sydney Opera House Raw Video: Unruly Passenger Restrained in Miami Raw Video: Robber Uses Drive-thru Window Raw Video: Dragon Arrives at Space Station Calif.'s Coronado Named Nation's Best Beach CEO Salaries Become Sore Issue in Labor Disputes
Seasonal Content
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Popular Searches
Powered by Local.com
AP Video
Beryl Makes Landfall on Florida Coast UN Blames Syrian Forces for Shelling Houla Raw Video: Gay Protest Blocked in Moscow Vatican in Chaos After Butler Arrested for Leaks Jimmy Carter Endorses Egypt's Election Results Biden Addresses West Point Graduating Class Dozens of Children Killed in New Syria Attack Raw Video: Activists Allege Massacre in Syria NJ Man Charged With Murder in Death of Patz Support, Fun for Kids of Fallen Soldiers at Camp Fugitive Penguin Caught, Returned to Aquarium 50 Years Later, Underground Fire Still Burning Light Show Transforms Sydney Opera House Raw Video: Unruly Passenger Restrained in Miami Raw Video: Robber Uses Drive-thru Window Raw Video: Dragon Arrives at Space Station Calif.'s Coronado Named Nation's Best Beach CEO Salaries Become Sore Issue in Labor Disputes
Twitter Updates
Follow me on Twitter
Seasonal Content
Helium debate
Helium
Section Teases
Royal Wedding Live