Batavia will address budget deficit without property tax increase

The Batavia City Council is looking at a deficit budget for 2020, the first time the city has used reserve funds to supplement its operating expenses.

The alternative to the deficit in the roughly $136.2 million spending plan would be an increase in property taxes, Director of Finance Peggy Colby said.

"This is the reason to have reserves," she said during a recent committee of the whole meeting.

A motion to reconsider the council's decision to use reserve funds failed in a 6 to 8 vote.

A week before, staff members were directed to find $50,000 to eliminate from the budget. The cuts were mostly from overtime and training in the police department and administration.

The budget slates $70,000 from the reserve fund for operations.

"I can't recall a deficit budget," Alderman Dan Chanzit said.

Chanzit said it would be possible to raise property taxes by "a few pennies" without having a huge impact on residents. In an uncertain time, he said, reserve funds should be left alone and the council needs to make some difficult decisions.

"I feel like we are kicking the can down the road," he said.

"No one wants to raise taxes," Alderman Michael O'Brien said. "But when you flush the toilet, you want everything to go down. When you flip the switch, you want the lights to go on. That costs money."

O'Brien said he didn't "want to tax people out of the city." He felt it would be OK to use some of the reserves but "I wouldn't go crazy on it."

It's about more than pennies, Alderman Marty Callahan said.

"We can't keep taking it from property taxes," he said. "The grand projects that we want, maybe we can't do them right now."

Callahan said the group was making the same hard decisions for the city that he makes on his household budget.

"I'm comfortable with this position," he said.

Alderman Abby Beck said she felt the city was relying too heavily on growth.

"I'll only agree to a few more pennies if we say we are going to limit it," she said.

Alderman Tony Malay didn't like the reserves being used for operational costs.

"We are deficit spending in this budget, but that it's for operations is a huge red flag," he said.

Although Colby said she would prefer a budget in which revenues cover expenditures, "we'll be fine. Our reserves are good."

Colby, who is working on her 19th consecutive budget for Batavia, said the plan includes needed capital projects, including a road study for Route 31, replacement of a fire engine, Prairie Street reconstruction and renovation at city hall.

On property taxes, Colby said the city will raise the amount of the levy by $250,000 but the rate for homeowners will remain the same.

"We will increase the levy enough to capture the new (equalized assessed value) for the new growth but not enough to increase someone's taxes," she said. "The city council didn't want to raise taxes if they didn't have to."