Batavia budget counts on unions making cuts

Batavia really, really hopes more unionized employees will agree to wage freezes or salary cuts.

Otherwise, the $1 million deficit projected in its 2010 operating budget is going to get even larger, according to city officials.

The proposed budget was unveiled Tuesday night at a government services committee meeting.

The budget calls for $23.4 million in expenditures, about $410,000 more than the city projects to spend by the end of 2009 but nearly $1.27 million less than it spent as recently as 2007.

It is also budgeting nearly the same revenue in 2010 as it expects to receive in 2009 - $22.37 million, compared to $22.28 million.

The expense figures assume unionized city employees in the fire and streets and sanitation departments will agree to pay cuts or freezes similar to those several police department unions agreed to recently, even though the city is contractually obligated to give them raises.

Talks are under way with the firefighters and are scheduled soon with the streets and sanitation workers. The budget does not include the potential retirement of several employees who would not be replaced, or would be replaced with less experienced, lower-paid people.

It also does not include any new revenues, although officials are considering charging for curbside leaf pickup, instituting a vehicle sticker program, or raising property taxes.

If the budget is approved as proposed, it will be the third year in a row the city has either experienced or budgeted a deficit in the operating funds. Electric, water and sewer treatment costs and revenues have their own budgets.

Administrators are suggesting that the council draw on the city's cash reserves to make up for the deficit. Instead of having 134 days' worth of operating expense cash in the bank, as it expects at the end of this year, it would have 118 days' worth at the end of 2010.

"You need to decide how you think the reserves can be used to get us through the next couple of years. But that is a policy issue," city administrator Bill McGrath told the committee. "I don't see 2011 as being the end of what we are going through with the economy."

The city expects to receive about $929,000 less in sales taxes than it did in 2008, but has budgeted a $247,000 increase for 2010.

The budget is on display at the Batavia Government Center and on the city's Web site, cityofbatavia.net. The government services committee will discuss it on Nov. 12 and 18, an official budget hearing will be conducted Nov. 16, and the city council will likely vote on it at its first meeting in December.

Budget: City considers going to reserves