ONEONTA _ The city is eyeing a 4 percent increase in the tax levy as it prepares its 2010 budget.
A decrease in state aid levels and sales-tax revenues, along with an increase in employee retirement and health-insurance costs, have helped make this a difficult budget-development cycle, Mayor John Nader said.
The 2010 budget proposal includes a reduction in general-fund spending and the application of between $900,000 and $1 million from the city's fund balance. This was done to offset the decline in revenues and keep the tax-levy increase at 4 percent, Nader said.
Nader said no layoffs are expected, but the city will likely be forced to cut some services, repair fewer streets and sidewalks in 2010 and raise some fees.
An initial estimation of the general fund budget _ based in part on department-head requests _ resulted in a $15.3 million general fund budget, he said.
"That was cut significantly," Nader said.
The city is looking at a $13.4 million general fund budget, a decline of $300,000 from the 2009 adopted budget, Nader said.
But a decline in state aid and other revenues will mean an increase in the tax levy.
Preliminary estimates show that for a home assessed at $85,000 _ which is the average in the city _ there would be an increase of about $45 from last year's tax bill for that homeowner, Nader said.
This does not include any increase in sewer and water bills. The sewer and water funds are calculated separately from the general fund budget.
Last year, the Common Council adopted an $18.3 million overall budget. The overall proposed figure for 2010 was not immediately available Tuesday.
Nader said the city's Youth Employment Program will likely be cut. That program hires local teens for summer jobs focused largely on the city's parks.
"I think it's pretty clear we will not be able to afford that," Nader said.
The city is also looking to increase some fees.
"We are probably going to be raising some fees, like softball-field reservations and other activities," Nader said.
Nader did not rule out layoffs for 2010.
"No one wants to see layoffs," Nader said.
Nader said work will continue on the budget in the coming weeks. The fiscal plan is usually adopted at the first Common Council meeting in December, which falls on Dec. 1 for this year.
