AMSTERDAM — Major changes to the $38.26 million city budget proposed by Mayor Michael Cinquanti for the next fiscal year seem unlikely as the Common Council begins to review the spending plan, according to Deputy Mayor and 1st Ward Alderwoman Kelly Quist-Demars.
“I think that’s a good starting point and we’ll see where we go from there,” she said Tuesday. “There is so much in the budget that is money we have to spend contractually and to keep things operating, but I always want to look at ways we can improve the spending in some of the extra areas we have.”
The 2024-25 budget proposal represents an approximately 3.46% decrease from this fiscal year’s $39.63 million budget. The proposal anticipates a $5.96 million tax levy and a $1.35 million appropriation from the city’s water fund balance.
Under the proposal, the tax rate would remain flat at $19.02 per $1,000 of assessed property value. Combined user fees would rise by $23.77 to a total of $1,211.91 assessed per dwelling unit. Individual fees would rise by 2% to $469.03 for water, $377.39 for sewer and $365.49 for sanitation.
“It is good to see that the tax rate will remain the same and just a little increase on the user fees,” Quist-Demars said. “That is a relief to a lot of people.”
She pointed to the likelihood the flat tax rate and modest increases to user fees contributed to the muted feedback to the budget proposal at Tuesday’s public hearing.
Only city resident John R. “Chet” Watroba addressed the council during the public hearing, railing against the increase to water fees.
“My bill keeps on going up, which I don’t like,” Watroba said. “The water situation is upsetting.”
Increases to the other fees were of no concern to Watroba, who took issue with the hike to water fees despite the city’s apparently abundant supply. He suggested the rate paid by users in the towns of Florida and Amsterdam should be increased so the city rate could be lowered.
“Make the people from the outside pay more,” Watroba said.
However, Cinquanti pointed out users in the towns already pay 1.5 times the rate paid by property owners in the city, meaning their rate would also increase next year. He said raising the rate further could make the resource unaffordable and it would be unreasonable for the towns to establish their own water systems.
Furthermore, Cinquanti said water and sewer service from the city has driven commercial and residential development in the towns, resulting in economic development benefits for all.
“We’re one larger community,” Cinquanti said. “We need each other. We need to work together and we are.”
Officials went on to say the user fees are set based on existing operational needs and long-term maintenance needs.
“I think the user fees for now are very reflective of what we need to take in in order to provide these services,” Quist-Demars said. “I don’t really foresee those changing much.”
Potential amendments to the mayor’s budget proposal will come into focus during upcoming workshops when the council initiates its review of the spending plan and discusses line items with department heads over the coming weeks before the June 1 deadline to adopt the budget. The first workshop is scheduled for May 9 at 5:30 p.m.
“Priorities are always to better understand where the money is going,” Quist-Demars said. “Making sure that … spending reflects the priorities and the values of this city and its residents.”
Under the mayor’s budget proposal, present staffing and service levels would be maintained or enhanced. Several positions that were left vacant in code enforcement, information technology and other areas would be funded next year. No new positions have been proposed at this stage.
The spending plan includes funding to enhance public safety, expand the use of technology across departments to improve efficiency, provide the seed money for economic development projects funded by reimbursable grants, replace aging Department of Public Works equipment and increase demolitions to curb blight.
It remains to be seen whether the council will seek to add spending for those or other initiatives. Quist-Demars plans probe the use of $10,000 added by the council to this year’s budget for park maintenance and improvements to see if further investments are warranted next fiscal year.
Hoping to maintain the flat tax rate proposed by the mayor, Quist-Demars suggested any additions sought by the council could potentially be balanced by subtracting from other lines.
However, it’s unclear how the review of the proposed spending plan by the state Comptroller’s Office may impact the city budget. The mayor’s proposal is subject to review by the state under the 2019 law enabling the city to borrow $7.7 million to finance its accumulated deficit. The deficit was eliminated in 2022.
The council will need to incorporate any changes recommended by the Comptroller’s Office into the 2024-25 city budget when the state returns its report on the mayor’s proposal, which is expected within the next week.
