Mayor Witte Unveils Proposed Budget
Mayor Linda Witte asked the Olean Common Council Tuesday to begin reviewing the numbers contained in her $15,925,177 budget proposal for 2010-2011.
“We’re trying to keep the tax rate flat this year or up only slightly,” said Mayor Witte, referring to the tax rate of $14.24 per $1,000 of assessed valuation that is projected in the draft.
Under this plan, homeowners of properties assessed at the citywide average of $60,000 could expect to receive a tax bill of about $854.40.
“Increases in our projected spending with my plan total $425,765, and that’s a modest 2.7 percent hike over the 2009-2010 level of appropriations,” she added, pointing to the $281,595 increase, or 4.25 percent, in the property tax levy, which totals $6,902,949.
Mayor Witte said that she slashed the spending increase from the 15.17 percent increase tallied in the first round of departmental budget requests. But she said she expects the city’s aldermen will make further changes to the plan in the coming weeks and those numbers could be revised downward.
The plan will generate a $1,385,607 fund balance at the end of the year, reflecting the city’s continuing position of financial stability, and will also provide a contingency account equal to 4.76 percent of operating costs, to be ready in case of unforeseen emergencies.
The draft was distributed a week before the Feb. 15 deadline, the President’s Day holiday in which the Municipal Building will be closed. A final budget must be in place by April 15 for the 2010-2011 fiscal year beginning June 1.
The $14.24 per $1,000 is the first double-digit tax rate for property owners in about seven years. Last summer a citywide revaluation was completed, and it brought all property assessments which had been calculated based on 1962 values to 100 percent. Currently, the 2009-2010 rate is $170.98 per $1,000 of assessed value based on a 7.95 percent equalization rate.
Mayor Witte also pointed out that the city will enjoy a smaller-than-expected cut in AIM, or state aid to municipalities. The most recent information received in the mayor’s office projects the city will lose only one percent of its aid, or $23,581, based on the city’s heavier reliance on AIM funding for 10 percent of its budget.
The water and sewer funds will operate in the black with the proposed plan. If adopted, the water rates of $58 per 1,000 cubic feet will not change, and the sewer rate hike is one of the lowest in recent years. The proposed sewer rent of $55.15 is an increase of $4.65 per 1,000 cubic feet.
“We’re trying to keep the tax rate flat this year or up only slightly,” said Mayor Witte, referring to the tax rate of $14.24 per $1,000 of assessed valuation that is projected in the draft.
Under this plan, homeowners of properties assessed at the citywide average of $60,000 could expect to receive a tax bill of about $854.40.
“Increases in our projected spending with my plan total $425,765, and that’s a modest 2.7 percent hike over the 2009-2010 level of appropriations,” she added, pointing to the $281,595 increase, or 4.25 percent, in the property tax levy, which totals $6,902,949.
Mayor Witte said that she slashed the spending increase from the 15.17 percent increase tallied in the first round of departmental budget requests. But she said she expects the city’s aldermen will make further changes to the plan in the coming weeks and those numbers could be revised downward.
The plan will generate a $1,385,607 fund balance at the end of the year, reflecting the city’s continuing position of financial stability, and will also provide a contingency account equal to 4.76 percent of operating costs, to be ready in case of unforeseen emergencies.
The draft was distributed a week before the Feb. 15 deadline, the President’s Day holiday in which the Municipal Building will be closed. A final budget must be in place by April 15 for the 2010-2011 fiscal year beginning June 1.
The $14.24 per $1,000 is the first double-digit tax rate for property owners in about seven years. Last summer a citywide revaluation was completed, and it brought all property assessments which had been calculated based on 1962 values to 100 percent. Currently, the 2009-2010 rate is $170.98 per $1,000 of assessed value based on a 7.95 percent equalization rate.
Mayor Witte also pointed out that the city will enjoy a smaller-than-expected cut in AIM, or state aid to municipalities. The most recent information received in the mayor’s office projects the city will lose only one percent of its aid, or $23,581, based on the city’s heavier reliance on AIM funding for 10 percent of its budget.
The water and sewer funds will operate in the black with the proposed plan. If adopted, the water rates of $58 per 1,000 cubic feet will not change, and the sewer rate hike is one of the lowest in recent years. The proposed sewer rent of $55.15 is an increase of $4.65 per 1,000 cubic feet.
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