City Council

CITY OF SARATOGA SPRINGS CITY COUNCIL MEETING CITY COUNCIL ROOM TUESDAY, OCTOBER 4, 2005 6:00 P.M. PRESENT: Commissioner Thomas Curley, DPS Mayor Michael Lenz Commissioner Matthew McCabe, Finance Commissioner Thomas McTygue, DPW Commissioner Stephen E. Towne, Accounts ABSENT: Phil Klein, Supervisor Anthony Scirocco, Supervisor STAFF PRESENT: Lynn Bachner, Deputy Commissioner, Finance Patrick Design, Deputy Commissioner, DPW Matthew Dorsey, City Attorney Debbie Harper, Deputy Commissioner, Accounts CALL TO ORDER Mayor Michael Lenz called the meeting to order at 6:00 p.m. with the Pledge of Allegiance. Mayor Michael Lenz moved and Commissioner Matthew McCabe seconded to adjourn to executive session at 6:00 p.m. for the purposes of discussing Niagara Mohawk, Shaw Litigation, sale of City owned property and land acquisition. Ayes all. Council members returned at 7:00 p.m. PUBLIC COMMENT PERIOD Mayor Michael Lenz opened the first public comment period and reviewed the rules of conduct. Dave Bronner, 5 Royal Henley Court, urged the Council to not support the media center project at a cost of $150,000. The City needs to be fiscally responsible and fund a consultant but it should be included in this budge cycle and considered along with all other projects. He recently appeared before the school board and did not see much support from them on this matter. On the sales tax issue he said it had been reported that the City had collected historic record- breaking numbers but suggested that the figures need to be brought forward on what the City would have collected had we stayed in the County formula. He asked that those numbers be made available. Joanne Yepsen, 91 Fifth Avenue, supported the media center project. This project will provide a great many benefits including educational and fundraising benefits. There are opportunities for fundraising efforts if done through the 503c programs. She said the funding issue needs to stop being tossed around between the city, county and the school. The $150,000 will improve the quality of life for the residents. The County has a $30 million surplus with only $5 million being returned to municipalities. The County should be giving back the entire $30 million. She encouraged the Council to fund the media center project. John Vandermeer, 20 Marion Place, Citizens for Community Media, thanked the Council for the $75,000 authorized at the last meeting. He said the media center project approached the school board last week with a request to match the City’s $75,000. The school board will consider the matter. The media center project will also approach the County Board of Supervisors. He encouraged the Council to issue the RFP for the telecommunications ordinance matter and to also request that the Public Service Commission perform a financial audit of the cable company. He also suggested that the Council consider passing a resolution in opposition of the proposed federal regulations which will weaken the City’s ability to negotiate with the cable company. -1- Christine Idle, 346 Lake Avenue, reminded Council members that they also represent taxpayers who work very hard for their money. She said the Council needs to contain taxes and have compassion for those who pay their taxes. Brian Riley, Citizens for Affordable Taxes group, said they were concerned with the preliminary budget figures and the rapid increase in property taxes. School taxes have gone up 26 percent from 2003 to 2005. City taxes have gone up 45 percent from 2003 to 2005. He questioned how, with an increase in the tax base, this could happen. He urged the Council to stay below $4.70 per thousand. John Kraus, Saratoga Citizens for Affordable Taxes, said that group issued a press release last week. This is a new committee that is concerned with the increase in property taxes. It is a nonpartisan group. Taxes have gone up 14 and 21 percent in the last two years. They would like to see the City work toward fair, affordable taxes by keeping the tax rate at or below $4.70 per thousand. Keep the budget process open. Do a formal budget presentation. Educate the taxpayers on the budget process, spending and revenues. Jay Verro, Evergreen Drive, Saratoga Citizens for Affordable Taxes, said the City needs to identify new revenue streams or look at cutting costs through services or positions. Businesses are forced to make those decisions every day. Rents are going up due to increase assessments and utility costs. Many seniors are forced to sell their homes because of higher taxes. Affordable housing in this City is an oxymoron. Patty Garrett, Union Avenue, urged the Council to support the media center project. She urged the Council to hire a consultant to negotiate the best contract for the City. Commissioner Stephen Towne said he had received a letter from Wilma Koss, 160 Kaydeross Park Road. She was not able to attend tonight’s meeting but wanted to voice her opposition on the water budget adopted by the Planning Board. She asked the Council to reject that budget as well as their recommendations. There being no one else wishing to speak under the public comment period, Mayor Michael Lenz closed the first public comment period. EXECUTIVE SESSION Niagara Mohawk Certiorari (05-206) Commissioner Stephen Towne said that there was discussion during the executive session concerning the Niagara Mohawk certiorari matter. He said this has been a longstanding certiorari case dating back to 1992 with annual lawsuits filed against the City. It is the most complex and the one with highest exposure for the City. After much discussion, they have come to a good resolution. Commissioner Stephen Towne moved and Mayor Michael Lenz seconded to authorize Martin Auffredou, attorney representing the City to execute an order of stipulation in the Niagara Mohawk certiorari matter on the following terms. The refunds and interest are waived in this settlement. For the next eight years, there will be no assessment challenges by Niagara Mohawk. The 2005 assessed value will be base on third party methodology (ORPS). The settlement encompasses 21 years. Niagara Mohawk’s aggregate refund claim is in excess of $5 million with the City’s exposure at 20 percent. There will be $33,000 tax credits for eight years. The cost to defend this case could have been in excess of $100,000. The terms under this settlement must also be acceptable to Richard Mullaney, attorney representing the school board. Commissioner Thomas McTygue said he was glad to see this case settled, however, this only goes to show that these parcels had been over assessed for all of these years. Commissioner Stephen Towne said this is a 13 year lawsuit that also moves 8 years forward. This was a very complex case. The school district had three times the exposure that the city had. Commissioner Thomas McTygue said Commissioner Stephen Towne did a good job negotiating this settlement, but the case stemmed from the parcels being over assessed. Commissioner Stephen Towne said that the tax credit to Niagara Mohawk through this settlement is for 8 years and will have a negligible impact on the City’s finances. Ayes all. MAYOR=S OFFICE -2- City of Saratoga Springs City Council Meeting Minutes Tuesday, October 4, 2005 Proclamation - Café Lena (05-207) Mayor Michael Lenz read the following proclamation into the record: A Proclamation of the City of Saratoga Springs WHEREAS, the history of American music has been written in a tremendous variety of settings. Whether the style is jazz, rock, folk, country, popular or classical, the music must begin and flourish someplace, and such places frequently become legendary, as important to our musical heritage as the artists, the composers, and the ideas, and WHEREAS, 45 years ago, in the City of Saratoga Springs, Lena Spencer created a legend on her premises. Café Lena began as a small venue intended primarily for local college students. It turned out to be a great deal more than that. Lena's stage became a showcase for great performers as well as gifted amateurs, and before long its fame had spread around the world, and WHEREAS, today Cafe Lena remains both an icon of American music and a cornerstone of our city's culture. It preserves Lena Spencer's practice of putting the music first. The woman who once referred to this place as "my whole existence" gave unselfishly of her genius and drive, sustaining this Cafe through financial difficulties that often seemed insurmountable. Through it all, she always gave good musicians a place to play and the rest of us a place to listen. Hers is a legacy that will endure. NOW THEREFORE, I, Michael A. Lenz, Mayor of the City of Saratoga Springs, am pleased to join with Café Lena's many friends and patrons in celebrating its 45th year. Saratoga on The Move - Resolution (05-208) Mayor Michael Lenz moved and Commissioner Thomas McTygue seconded the following resolution: BE IT RESOLVED by the City Council of the City of Saratoga Springs as follows: WHEREAS, obesity among adults and children is a topic of increased importance in our country. Although we may find the facts difficult to accept it is all too obvious that many Americans today carry enough excess body weight to threaten their health. Perhaps the saddest fact is that we tend to ignore even the minor changes in physical activity and eating habits that could add many healthy and happy years to our lives; and WHEREAS, for some time now, America on the Move and its local component Saratoga on the Move, have worked diligently to inform the public of the danger of obesity and to offer for action, programs and activities to promote healthy behavior. These organizations tell us that even a walk of 200 steps and a 100 calorie reduction in food consumption every day can make a major difference in our overall health. It is the responsibility of every local government to assist these organizations and the public by providing every possible opportunity for health activity. NOW, THEREFORE, BE IT RESOLVED, that this Council hereby recognizes and commends the great work done by America on the Move and Saratoga on the Move and further more encourage all Saratogians to increase their awareness and appreciation of good eating habits and exercise. Ayes all. Sue Mallanoswki and Holly Schwarz Lawton both thanked the Council for adopting this resolution. They said there was an event last week sponsored by Saratoga on the Move with more than 50 participants. They also thanked the county for their support. They also noted that they will be tracking 60 constituents in the County during this program which is a pilot program through a national initiative. Cable Franchise Agreement Mayor Michael Lenz said there have been many conversations between the City ad the Media Center Project. A letter was drafted today that will be sent to the Public Service Commission requesting their assistance with a financial audit. He said this could be done within the confines of the 2005 budget. Jacki Pardon said the three telecommunications bills at both the state and federal levels have been moved from the table. However, there is now the potential for a rewrite of the Telecommunications Act. That could endanger the PEG access. She suggested that the Council meet with her next week to go over the preliminary survey that Steve Pierce completed. -3- City of Saratoga Springs City Council Meeting Minutes Tuesday, October 4, 2005 The survey provides information on the justification for renewal process, sample contracts, survey of cable franchises, budgets, etc. Visitor Center Donation Mayor Michael Lenz moved and Commissioner Matthew McCabe seconded to accept the $25 donation from City National Bank for the Visitor Center programs. Ayes all. Recreation Department Program Funding Application (05-209) Mayor Michael Lenz moved and Commissioner Thomas Curley seconded to authorize the Mayor to sign the 2006 Individual Program Application State of New York Office of Children & Family Services funding application. Ayes all. Recreation Department - Gym Rental Contracts Mayor Michael Lenz moved and Commissioner Thomas McTygue seconded to authorize the Mayor to sign the gym rental contracts with Skidmore College, Town of Wilton, Ballston Area Community Center, Saratoga Springs Enlarged City School District and the YMCA of Saratoga. Ayes all. CA Smith - Environmental Review of Spring Run Trail Properties (05-210) Matthew Dorsey said the Council had previously approved contracts for the Springs Run Trail properties, however, as part of the environmental review findings, debris was discovered which now requires a phase 1 environmental review of all of the parcels (Quality Hardware, Egar/Baker, Allerdice and Excelsior Park). Mayor Michael Lenz moved and Commissioner Stephen Towne seconded to authorize the Mayor to sign all necessary documents with CA Smith for a phase one environmental review of the four parcels in an amount not to exceed $3,500. It was noted that the funding for this will come from the Open Space Bond Act. Ayes all. Mayor Michael Lenz moved and Commissioner Stephen Towne seconded to authorize the Mayor to sign all necessary documents with CA Smith for a phase two environmental review of the Ten Springs parcel at a cost not to exceed $12,000. It was noted that the funding will come from the Open Space Bond Act. Ayes all. ACCOUNTS DEPARTMENT Approval of September 20 meeting minutes Commissioner Stephen Towne moved and Commissioner Thomas Curley seconded to approve the September 20 meeting minutes. Ayes all. Award of RFQ - Putnam Street Parking Deck Testing Upon the recommendation of the Department of Public Works, Commissioner Stephen Towne moved and Commissioner Thomas McTygue seconded to award the contract for the Putnam Street deck testing services to Ryan Biggs of Troy for $14,000 including expenses and further move to authorize the Mayor to sign all related documents contingent upon review by the Risk & Safety Manager and the City Attorney’s Office. This motion is contingent upon DPW transferring the funds to the appropriate line item. This request for quote has been reviewed by the Purchasing Department and meets the purchasing guidelines. Ayes all. Quarterly Report Risk & Safety Management -4- City of Saratoga Springs City Council Meeting Minutes Tuesday, October 4, 2005 Marilyn Rivers informed the Council that October is National Fire Safety month and there will be an open house at the Lake Avenue Fire Station. There will be four training sessions offered in the near future on winter readiness, OSHA training, sensitivity training and senior winter preparedness. There will be community outreach programs offered to EOC and the Senior Citizens center. Other items that are being worked on include emergency preparedness (dam safety), interactive play fountains (develop risk & safety program), hazard communication, capital budget program and claims management. She said the dog ordinance will also be reviewed as requested by the Department of Public Works. She noted that the claim for the weed harvester had been settled at $45,000. FINANCE OFFICE 2006 Comprehensive Budget Commissioner Matthew McCabe read a prepared statement into the record (Attachment A). Commissioner Matthew McCabe said that public hearings and workshops were scheduled as follows: Tuesday, October 11, capital budget workshop 6:00 p.m. Tuesday, October 18, budget hearing 6:30 p.m. Thursday, October 20, budget workshop 6:00 p.m. Tuesday, October 25, budget workshop 9:00 a.m. Tuesday, November 1, budget workshop 6:00 p.m. Thursday, November 10, budget workshop 9:00 a.m. Commissioner Matthew McCabe said that it may or may not be necessary to hold all of the workshops. Payrolls Commissioner Matthew McCabe moved and Commissioner Thomas Curley seconded to approve the following payrolls: September 23, 2005 - $433,836.45 and September 30, 2005 - $344,899.15. Ayes all. Warrants Commissioner Matthew McCabe moved and Commissioner Thomas Curley seconded to approve the following warrants: 2005 regular warrant 10/4/05 1OCT05 $ 722,384.85 2005 mini warrant 9/28/05 MC2SEP05 $ 4,875,878.93* 2005 mini warrant 8/31/05 MC3SEP05 $ 8,666.67 *Check #139185 for $2,008,666.67 voided on September 29, 2005 Ayes all. Transfers - payroll Commissioner Matthew McCabe moved and Commissioner Thomas McTygue seconded to approve the payroll transfers as presented (Attachment B). Ayes all. Transfer - regular Commissioner Matthew McCabe moved and Commissioner Thomas McTygue seconded to approve the payroll transfers as presented (Attachment C). Ayes all. Amendments -5- City of Saratoga Springs City Council Meeting Minutes Tuesday, October 4, 2005 Commissioner Matthew McCabe moved and Commissioner Thomas McTygue seconded to approve the budget amendments as previously distributed (Attachment D). Ayes all. 2004 Financial Statements Commissioner Matthew McCabe informed Council members that the 2004 financial statements had been received and distributed to Council members. It is also available for public review. DEPARTMENT OF PUBLIC WORKS Italian Gardens Statues Commissioner Thomas McTygue moved and Commissioner Matthew McCabe seconded to authorize the Mayor to sign the contract with Marble Cast Products, Salt Lake City, for $25,280 for the statutes to be placed in the Italian Gardens in Congress Park. Ayes all. High Rock Avenue Parking Lot Project Commissioner Thomas McTygue said that there had been three responses to the RFP for the redevelopment of the High Rock Avenue parking lot. He formed a committee with the following members to review the material: Wallace Allerdice, Jim Grande, Jack King, Ted Martin, Rod Stribley, Gordon Boyd, Bill McTygue, Paul Male and Geoff Bornemann. He said there was a potential conflict of interest in using Tom Roohan because Sonny Bonacio was one of the respondents to the RFP, so Tom Roohan would not be on the committee. There will be presentations made to the committee which Council members may attend. Respondents will be given approximately 1 2 hours to discuss the proposal and then it will be moved to the committee for their review and recommendations. He said he hoped the first meetings would take place next week. He noted that there are three very competitive proposals. He said they will work closely with the City Center. DPW Salary Increases for 2005 - Transfer from Contingency Commissioner Thomas McTygue moved and Commissioner Thomas Curley seconded to transfer $120,000 from the contingency fund to cover the 2005 DPW contract. Ayes all. Saratoga County Water Scoping Document Commissioner Thomas McTygue said there is limited time to review the Saratoga County Water Scoping Document. He said the City had hired Barton & Loguidice to review the document and develop a list the City’s concerns/recommendations. He said those concerns/recommendations had been forwarded to the County. Bill McTygue said they are also soliciting input from Charles Morrison. He noted that any suggestions/recommendation/concerns on the document developed by Barton & Loguidice should be forwarded to the City Attorney. He also noted that any single Council member may submit their concerns to the Council. He said he did not believe that the County would hold a scoping session. Parking Solutions Fund - Transfer Funds Commissioner Thomas McTygue said there was approval at the September 6 Council meeting to transfer $8,000 to cover the cost of the engineering services necessary for the parking deck. He said the proposal has come in and it was at $14,000. It is now necessary to transfer an additional $6,000 from the parking solutions fund to cover this cost. Therefore, Commissioner Thomas McTygue moved and Mayor Michael Lenz seconded to transfer $6,000 from the parking solutions fund to cover the cost of the contractor to review/analyze the parking deck. Ayes all. DEPARTMENT OF PUBLIC SAFETY -6- City of Saratoga Springs City Council Meeting Minutes Tuesday, October 4, 2005 Set Public Hearing - Alternate parking on Cottage Street Commissioner Thomas Curley requested a public hearing be set for the October 18 at 6:55 p.m. on alternate side parking on Cottage Street. Towing Contract Commissioner Thomas Curley said that his office had been working on updating the towing contracts and ordinance. He said it was necessary for the Council to adopt the schedules a & b of the contracts Therefore, Commissioner Thomas Curley moved and Mayor Michael Lenz seconded to approve the towing contracts which includes schedules a & b. Ayes all. Federal Asset Forfeiture Agreement (05-211) Commissioner Thomas Curley moved and Commissioner Thomas McTygue seconded to authorize the Mayor to sign all necessary agreements in connection with the Federal Equitable Sharing Agreement. He said this will allow the City to share in the proceeds of equitable sharing program. Ayes all. Administrative Assistant position (05-212) Commissioner Thomas Curley moved and Commissioner Matthew McCabe seconded to move the administrative assistant position located in his office from 33 hours to 40 hours effective Monday, October 10. Commissioner Thomas Curley said that this position was always meant to be a 40 hour position, however, when it was created, it was not done so accordingly. He said that he had since sought approval from the CSEA Union and it was granted. Commissioner Thomas Curley stressed that moving this position from 33 hours to 40 hours with no salary adjustment was for this position only and will not impact any future positions moving from 33 hours to 40 hours. All other positions moving from 33 hours to 40 hours will be negotiated on a case by case basis with appropriate salary adjustments. Ayes all. Contract - Karen Gazada Hearing Officer (05-213) Commissioner Thomas Curley moved and Commissioner Thomas McTygue seconded to authorize the Mayor to sign the contract with Karen Gazada as a hearing officer for a Section 71 proceeding contingent upon the review of the Risk & Safety Manager. He noted that the City Attorney had reviewed the document. He noted that the funds will come from the DPS budget. Matthew Dorsey explained that this was in connection with Civil Service law. He said the city had not had a case such as this before. Ayes all. SUPERVISORS Anthony Scirocco said that flu season was coming. He said the County will provide vaccination clinic and there should be adequate supplies. When the vaccines become available, the county will publicize the dates and times of the clinics. Phil Klein said that the Saratoga County Social Services Department had recently distributed more than 1,700applications for the HEAP program. He said to date about 800 have been returned. He encouraged anyone who received one of those applications to return it so they can participate in the program. -7- City of Saratoga Springs City Council Meeting Minutes Tuesday, October 4, 2005 PUBLIC COMMENT PERIOD No one spoke. ADJOURNMENT Mayor Michael Lenz moved and Commissioner Matthew McCabe seconded to adjourn the meeting at 8:30 p.m. Ayes all. There being no further business, Mayor Michael Lenz adjourned the meeting at 8:30 p.m. Respectfully submitted, Kathy Moran Clerk Approved: -8- City Council Meeting Minutes, 10/4/05, Attachment A To the Members of the Saratoga Springs City Council and the People of the City of Saratoga Springs: I present to you the 2006 Comprehensive Budget, the second budget that I have had the privilege of submitting. Enormous increases in re-assessments, as we aligned our assessment values with the runaway market values of today’s housing market, have brought both angst and pride to Saratogians. While we are proud that our beautiful, prosperous city increases the quality of our life as well as the value of our homes, we are fearful that the ever-increasing assessments will drive us from these homes. Assessments, budgets, and tax rates are inter-related, and we must strive to constrain all of these in order to contain any one. In my first budget I succeeded in re-aligning our fiscal priorities with our fiscal realities. I balanced the budget without a surplus and planned for contingencies. I demanded year-end fiscal discipline, and with the cooperation of my Council Members, re-built a surplus where there was none, and created retirement reserve for 2006. In my second proposed budget I am committed to continuing the fiscal restraint and conservative policies that have placed the City’s finances on strong and stable ground. This proposed budget strives to balance the services necessary to maintain this fine City with our ability and desire to finance these services. General Economic Climate for Local Governments In the beginning of September 2005 the New York State comptroller issued a summary of a report dealing with “growing fiscal distress” at the local government level. In that summary the Comptroller noted that “Overall costs are increasing at nearly twice the rate of inflation B the pressure towards increased spending is primarily caused by . . . healthcare costs, wages and salaries, and employee benefits, including retirement mandates.” Saratoga Springs is neither alone in nor immune from these difficulties. Key Spending Increases This year’s budget is most responsive to one, universal message from the taxpayer B relief. Having brought the city to a stronger fiscal reality, first and foremost in this year’s analysis is the taxpayers’ concern with their share of the burden. This consideration is first, even before the merits of any new spending. Accordingly, you will see very little new spending other than required increases involving personal services and benefits. This does not mean that you will see stagnation in City Hall in the year 2006. It means that you will see increasing innovation so that fewer resources result in better services. The bottom lines for the 2006 budget year: Total 2006 Comprehensive Budget: $47,976,754.86 Total Change from 2005: $5,818,000.93 Total 2006 General Fund Budget: $32,488,856.93 General Fund Change from 2005: $3,508,051.52 Now I will address the General Fund, as this is where the real property tax burden is felt. About 98% of the increases that are reflected in this change are due to Benefits (Health Insurance, Social Security, Retirement), Personal Services contracts, energy costs, and various other required contracts (insurance, medical exams, special assessment districts): Health Insurance, Social Security, and, most notably, the NY State Retirement Plan, caused a budget surge of $3,079,640 and there is no end in sight. This is the challenge of 2006, and every year hereafter, until the costs of health care and the NY State Retirement Plan can be contained. The increased cost of Benefits account for about 78% of the entire increase between the 2005 Adopted and 2006 Comprehensive budgets. The Retirement Plan, alone, mandated by the state, is the most dramatic addition to this year’s budget. This is the one, single expense that drives municipal budgets all across this state. It accounts for about 61% of the increase in our budget. Our retirement mandate has ballooned from about $86,000 (actual) in the year 2001, to $2.42 million dollars. In 2005, the state allowed a one-time, one-year deferral of the 2005 payment to assist cities struggling to meet this exploding obligation. We used our deferral wisely, and established a $1.5 million retirement reserve with 2004 surplus funds to help offset the 2006 expense. Health Insurance, rising across the nation, rose 16.4% over 2005 costs. Personal Services - The DPW Union contract was re-negotiated this year; there are four more union contracts up for negotiation. Overall, Personal Services (and contingencies therefore) account for about 9.6% of the overall increase between 2005 and 2006. A special mention must be made for the cost of Gas, Oil, Utilities, and related items. Throughout the year, indeed the last few tragic weeks, these costs have risen dramatically across the nation for all consumers, our city included. This must be reflected in the 2006 budget, and an increase of about $320,900 (24% over last year’s costs) was made in these lines to accommodate the situation. This increased cost most deeply effects the Departments of Public Works, and Public Safety. Cuts were made to offset some of this cost, but overall it accounts for about 8% of the increases between 2005 and 2006. All other increases were kept to a minimum (1% new programs; 1% programs offset by donations). They are greatly outweighed by the benefits incurred and cuts endured to include them. For the most part, they are revenue producing or security oriented: A commitment to our investment in our parking decks, funds are included for their maintenance and upkeep. These are completely offset by donation by the state. A part-time grant writer to pursue grants for all departments, a position that should bring in enough revenue to justify its creation. A part-time seasonal building inspector is renewed to keep the permit process moving during the busiest time of the construction year. A part-time parking enforcement officer is funded for our busy seasons. Funds for computers required by a grant that otherwise covers the costs of putting laptop computers which are connected to DMV, the court system, as well as other data networks in patrol vehicles (“TRACS System”) Upgrades in City-wide wide data and computer protection, general security, and disaster recovery Key Spending Decreases Spending decreases contributed to the proposed tax levy. Conservative budgeting and considerable sacrifice on the part of each and every city department has been requested. Most expenses (other than contractual items such as benefits or Personal Service) were held at 2005 amounts; many were rolled back even further. No expenditure was impervious to this process. Running the City on less will be our challenge. There is no doubt in my mind that Saratoga Springs can rise to this occasion, and our future depends on it. As long as the retirement obligation remains at its current level, our budget will be driven by costs that we cannot control but are required to pay. Capital Budget Capital Projects deserve a special mention in this budget message. The City engaged in a new process, as required by the Charter, which resulted in a thorough review and ranking of the City’s Capital needs over the next 6 years. The projects included in this budget were limited to those that made this list of priorities. Choices were made based on 1) absolute necessity and 2) city-wide priorities. The Committee’s ranking system, as well as long range operating costs, were important considerations. Capital projects included in the 2006 Comprehensive Budget: Total about $4.139 million; about $3.789 million of that amount will be bonded $610,000 of that will be bonded in the water fund $350,000 is from other sources (grants, donations, fees) Mandated by the insurance company - we are required to complete these: repairs to the Police Department floors, bathroom, jail cells, electrical system; repair to the Arts Council roof. Funded by outside sources, but must be included in the capital budget: Downtown Transportation Plan, initiated to meet the anticipated needs generated by new development and funded by SEQR fees paid by private developers, the Railroad Run Trail Expansion (Phase III), which will extend this trail form New Street to the State park and is funded by a state grant from the NYS Department of Parks, Recreation and Historic Preservation. Other capital items: Excelsior Avenue will be repaired and improved; Improvements to the South Broadway waterline, the Maple Ave Storm sewer, the Southeast Storm sewer; Improvements to the Interlaken water treatment facility; Replacement program for DPW vehicles. Upgrades to the Skatepark Ramp Perhaps the single most notable Capital Budget item is something that the citizens of this city have been requesting for the longest. I am pleased to state that, in response to the overwhelming demand, a new recreation facility has been included in this budget. The total funds available for this project are $2.2 million, of which $1,865,000 is funded in 2006. Revenues I remain committed to using reasonable, realistic estimates. Over estimating revenues only serves to artificially hold down real property taxes for a short period of time; it ultimately results in operating deficits, unwieldy jumps in property tax, and erroneous concepts of the cost of a city’s government services. The majority of our city’s budget is supported by four main revenue sources - state aid, mortgage tax, sales tax, and real property tax. State revenue sharing: stagnant since 2001, saw an increase of $264,123 for the 2005-2006 revenue sharing fiscal year. Mortgage tax revenue: is benefiting from low interest rates and the building boom. While last year’s collection is skewed because of a one-time, large payment for the NAVY housing project, an increase over last year’s estimates is expected. Sales tax collection: is running about 2% higher than last year’s 2004 record $8.119 million collection, and has been estimated at $8.5 million for 2006. This is supported by the County’s growth rate predictions for the county, as well as their positive outlook for the city. A new revenue has been generated by a federal program designed to encourage employers to retain prescription drug coverage in the face of the new Medicare Part D plan (prescription coverage under Medicare). Another new revenue will result from fees for Dumpster permits Surplus: The Comprehensive Budget 2006 is supported by funds from both unreserved and reserved fund balance. Available by good foresight, among these are: Retirement reserve: The good planning of my department resulted in setting $1.5 million of this aside in a retirement reserve, and I propose that this be used towards the 2006 retirement obligation. County Surplus distribution: In July of 2005 Saratoga County passed a resolution to release a percentage of its surplus to each of the municipalities in the county. Saratoga Springs is very grateful to be the recipient of $791,644. In a unanimous decision that I supported wholeheartedly, the City Council immediately resolved to set this aside for expenditures in the 2006 budget year, and, “to the extent practicable, for property tax relief for the citizens of Saratoga Springs during the 2006 budget year.” In accordance with the requirements of this resolution, I have used these funds to reduce the taxpayers’ burden in 2006. There are a few changes in our other revenue sources that must be addressed. Saratoga County was the source of substantial increases as well as substantial decreases in our revenue base. While the City is grateful for the County surplus distribution, be aware that we also experienced a $500,000 reduction in general fund revenue sources at the County’s hands. OTB: The County Treasurer has advised that it is unlikely that OTB (Off Track Betting) Surcharge revenue will reach the minimum distribution due the County before the City may receive a share. Revenues budgeted at $200,000 in 2005 must be reduced to $0 in 2006. OTB: Under the current formula, the County receives the first $1.66 million of OTB revenues collected. This means that the County may receive $1.66 million in 2006, while the city would receive nothing. This vast revenue source is from the harness and flat tracks that are located within our own City boundaries. I have repeatedly appealed to our City Supervisors, the County Board, the NY State Racing and Wagering Committee, as well as our state Assembly and Senate representatives to direct these funds, as well as the NYRA Racetrack admissions revenue, to the City in a proportion that more fairly reflects our contribution. HUB “Grant”: In addition, we have been forced to remove County funds distributed towards the HUB parking lot from the general fund budget. Originally promised without restriction, the County subsequently limited these funds to debt service only, leaving a $300,000 gap in our general fund revenues. Of course, it is the real property tax levy that is of the most vital interest to the citizens of Saratoga Springs. The tax levy has increased in the past several years due to the rise of certain expenses such as wages, health care benefits, and retirement payments, as well as the dwindling of certain revenue items, most notably the surplus. While the tax levy did increase last year, the effects of this on the taxes paid by each individual have been misstated for reasons that do not belong at this table. The amount of 2004B2005 increase in property tax paid by each individual taxpayer depends on the amount of 2004B2005 increase in their assessment, and taxpayers’ assessments did not all increase by the same percentage. For example: If your assessment value was increased by 40%, your taxes decreased by 0.06% If your assessment value was increased by 50%, your taxes increased by 7.08% If your assessment value was increased by 60%, your taxes increased by 14.22%. This year marks a notable departure from past practice B the taxable assessment was not offered to the City Council to be approved by vote. For the 2006 taxable assessment, we have been informed that, reflecting current full market value trends, all city property owners’ assessments were again increased, this time by 8%. The expenditures included in the 2006 Comprehensive budget will require a tax levy of: $11,732,924.93. This is a decrease of $32,066 from the 2005 tax levy. This results in an average tax rate decrease of about 8%, which offsets the 8% increase in assessments. The following draft tax rates (debt service and general fund, combined): Inside District: 4.69 Outside District: 4.67 This budget is bringing to the citizens of Saratoga Springs much of what they have requested in services with absolutely no increase in the tax rate. This is responsive government. This is a good budget. Conclusion The 2006 Comprehensive Budget is the result of hard work, sacrifice and good planning. It contains good news as well as a difficult forecast. I am pleased to be able to bring to the table a decrease in the tax rate that offsets the increase in assessments. I have the integrity to be forthright about what lies ahead. As long as the New York State Retirement Plan drives our expenses, and the County holds the strings to our revenues, we will be fiscally challenged. I will continue to press the state regarding mandates, as well as the county regarding our fair share of OTB and NYRA Racetrack admissions. This would take the burden of the attendant expenses off our citizens. I will continue to eliminate unnecessary spending, find new revenue sources, and go after every sales tax dollar that this city is owed. I will continue the fiscally responsible measures that have put our City on strong, stable financial ground, with a surplus encouraged, a contingency prepared, a city charter in place, and solid funding for essential services. The greatest service this City Council can do for its taxpayers is to take the politics out of the analysis of this budget. Analyze as you will, but let us all keep the election year rhetoric at bay and do what is best for this city.