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Johnstown may delay adoption of 2010 budget

City officials cite concerns about uncertain state aid

By MICHAEL ANICH, The Leader-Herald
POSTED: November 3, 2009

JOHNSTOWN - Citing the unpredictability of state aid for next year, City Treasurer Michael Gifford on Monday advised the Common Council to wait to adopt the city's 2010 budget - perhaps past the date set by the City Charter.

"My suggestion would be to push the adoption of the budget off as long as you feel comfortable," Gifford said.

Mayor Sarah J. Slingerland already has released her tentative 2010 city budget, which shows a 2.4 percent property tax-rate increase. But in recent weeks, city officials have become increasingly concerned about the state aid picture. Slingerland said the city receives at least $3 million annually in aid from the state.

Gifford has told city officials that if cuts proposed by Gov. David Paterson are realized, Johnstown may have to take a fresh look at trying to trim more out of next year's budget.

The council conducted a public hearing Monday on the tentative budget, and no one spoke.

Since he first heard a few weeks ago there might be state aid cuts, Gifford said, the news out of Albany has been scant.

"We really know nothing more on state aid," the treasurer said.

During a break in the meeting, Slingerland said under the City Charter, the council has to adopt the budget "on or about" Dec. 1. Both she and 2nd Ward Councilman Chris Foss said it is not a hard deadline, and adoption can be delayed if it is deemed necessary for the good of the city.

Slingerland told the council it can wait until as late as Dec. 7 or 21 - dates of scheduled council meetings - to adopt the 2010 city budget. The mayor said the council also could conduct a special emergency meeting in between or around those dates to adopt the budget.

"We'll just work it and decide how we're going to go along," Slingerland said.

The tentative city budget for next year totals $10.1 million in appropriations - up from $9.9 million appropriated for 2009.

Slingerland said the budget allows for a 2.13 percent increase in spending.

The budget calls for a 2.4 percent hike in the property tax rate - an increase of 38 cents per $1,000 of assessed property value. The city tax rate would rise from $15.98 per $1,000 this year to $16.36 for 2010. Slingerland said a property owner with a home assessed at $100,000 would see his taxes increase by $38 next year, for example.

The tax levy in the city would go up from $3.7 million this year to about $4 million next year. The city plans to use $290,000 of its fund balance in 2010, compared to $301,100 used for 2009.

Expenditures in many city departments are expected to decrease for 2010, including the Department of Public Works - from $2.35 million to $2.29 million.

Michael Anich can be reached by e-mail at johnstown@leaderherald.com.

 
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View Comments: | 1-4 | Post a comment
AreaResident
11-04-09 2:16 PM
I'm not hoping for a disaster in Johnstown. I'm saying their apparent success over the last ten or so years has been the result of many factors they can't really take credit for. The residents of that city are not inherently better behaved, or more socially involved, or more educated, or any other measure of a community's worth, than Gloversville. They happened to have a couple of strip malls within their city line and an industrial park (heavily subsidized) that has been more successful than Gloversville's. No inherent virtue, just luck. Johnstown has developed a bit of arrogance in recent years, to the point that they don't even consider cooperating with other municipalities. I think that attitude may change in the next couple of years as Gloversville gets its own Wal-Mart-anchored strip mall and Johnstown's budget starts to come undone and they learn that they are not much different from the rest of the county.

IKnooow
11-04-09 9:24 AM
It has been observed over the past few years that Johnstown has taken a pretty responsible stance regarding their budget and the reliance on state aid. Seems to hold true in this year's case as well. Are you suggesting they somehow deserve some kind of punishment for that?

AreaResident
11-03-09 11:28 PM
Johnstown may receive an overdue comeuppance in a few weeks. Our two cities are not that different. When sales taxes drop, Johnstown has a harder time justifying their claim of superiority to neighboring communities. It turns out they've been propped up by state aid, just like everyone else in the region.

Discobulous
11-03-09 3:58 PM
Replace the word 'delay' with the words 'hedge our bets'.

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