1 week Ago By Robert Harding [email protected]
Amid a $2.8 million budget shortfall , the Auburn City Council will begin the process to override the property tax cap. The council's agenda for Thursday includes a resolution to set a public hearing on the local law to exceed the tax cap.
If approved, the hearing would occur at the May 22 meeting. When the budget process began, the city had an $8.6 million shortfall — the gap between expenditures requested by departments and the projected revenue for the fiscal year.
City staff began erasing that deficit by cutting from department budgets and restructuring debt payments. However, a budget gap remains. Auburn City Comptroller Mary Beth Leeson told the council on Thursday that "options are limited" for closing the deficit.
One option — providing a retirement incentive to select employees — has already been approved. Leeson hopes that will save the city $300,000, but they won't know until May 17 how many of the roughly 30 employees who are eligible will take the incentive. The city could restructure more of its debt to save an additional $381,000, according to Leeson.
The state budget is also a factor. Gov. Kathy Hochul's proposed budget included $4,982,093 in unrestricted aid for Auburn, which has been unchanged for more than a decade, and $578,528 in temporary municipal assistance.
But, as of Saturday, Hochul and state legislative leaders have not reached a 2025-26 budget agreement. The city is unsure how much aid it will receive from the state. Exceeding the property tax cap, Leeson said Thursday, is "the last straw.
" The state imposed the cap to limit property tax levy increases. Generally, the cap is 2% or the rate of inflation, whichever is less. But the cap for each municipality is recalculated every year.
The city's proposed budget would increase the property tax rate from $11.27 to $11.74 per $1,000 of taxable value.
The tax levy increase would be within the cap, according to Leeson. To override the property tax cap, three of the five members of City Council must vote for the local law. State law requires the passage of a local law by 60% of a local government body's members to exceed the cap.
Overriding the property tax cap may not be necessary. The Cayuga County Legislature took similar steps during its budget process in 2024, but ultimately did not exceed the cap. The city's budget process is winding down.
After presentations from department heads, Auburn City Manager Jeff Dygert will gather feedback from councilors. A public hearing on the proposed budget will be held at the May 22 council meeting. The City Council is expected to pass the 2025-26 budget on June 12.
Government reporter Robert Harding can be reached at (315) 664-4631 or [email protected] .
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