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City of North Tonawanda releases preliminary 2025 budget

Fri, Oct 18th 2024 11:00 am

$45.4M plan includes capital spending, tax increase; Common Council expected to adopt budget Nov. 6

By Terry Duffy

Editor-in-Chief

The City of North Tonawanda released its preliminary 2025 budget of $45,420,116.36 on Oct. 1. The budget expands from NT’s adopted expenditures of $44,082,156 and revenues of $43,247,289 in 2024. It calls for a continued greater reliance by the city on outside funding sources, includes spending for a sidewalk capital improvement project, and a temporary sewer use hike to cover expenses from a water meter replacement project. It also forecasts a 4.44% tax levy increase.

For 2025, the budget introduces what Mayor Austin J. Tylec called “a new approach that is both responsible and informative.” He said the plan includes new initiatives aimed “to create innovative programs, increase services, enhance programs or reduce expenses.” The budget also calls on further action by the city’s council on proposals beyond merely adopting the 2025 budget.

“This process ensures that every proposed change is carefully considered and aligned with our city’s long-term goals,” Tylec said.

According to Tylec, the budget seeks to expand on the city’s grant funding opportunities over the coming year, which saw North Tonawanda utilize $17.5 million in outside funding sources in 2024 to assist various programs. “Leveraging grants have assisted with many capital projects, but we also took on some initiatives to help contain operational costs, reduce expenses and increase revenues.”

In capital projects, the budget includes $50,000 in spending for the city’s sidewalk replacement program that could see approximately 200 additional sidewalk blocks replaced. It also includes $140,000 in budgeted revenue from rental registration funds in the Building Department covering 5,000 rental units, and it includes $101,000 in revenue from a proposed parks and recreation fee schedule.

All three proposals would require separate votes by the city’s council prior to its signing off on the entire 2025 budget.

The budget also includes a temporary $1 increase in the NT sewer rate – from $5 per 1,000 gallons to $6 per 1,000 gallons. The city’s water rate is expected remain at $3 per 1,000 gallons of use – a rate that has remained unchanged since 2021, Tylec said. “By contrast, other municipalities have frequently raised their rates during this same period, resulting in much high costs for their residents.”

According to Tylec, the temporary increase is from the city’s $6 million water meter replacement project that’s expected to begin in November. “The increase is intended to offset the budgetary deficit of $547,540 by adding $595,376 to our sewer budget while we complete the water line replacement.”

The new tax levy would total $22,263,948 – a $908,948 increase from 2024 – while increasing the tax rate from $16.05 to $16.62 per $1,000 of assessed valuation. The plan is designed to increase the city’s unappropriated fund balance account by $57,296. For a property valued at $100,000, the owner would have an additional cost of $56.88.

The budget also seeks to use $422,000 in remaining American Rescue Plan funds, greater reliance on grant funding, and overall utilizing fund balance monies. It also includes the aforementioned 4.44% tax levy to balance out the plan.

“While any tax increase is never ideal, I believe our city’s leaders and departments have effectively navigated challenges that could have caused severe financial setbacks, all while driving North Tonawanda to become one of the most notable resurgences in Western New York,” Tylec said.

At this writing, the 2025 budget is on file in the city clerk/treasurer’s office and online at www.northtonawanda.org for public review. The NT Common Council is expected to vote on the 2025 budget at its Nov. 6 meeting. The budget is due to be filed with the state comptroller’s officer by mid-November.

In closing, Tylec added, “Our 2025 budget is a testament to our city’s reliance and potential. By continuing to prioritize sound financial practices, seeking new revenue streams, and investing in our community, we are laying the foundation for a bright and prosperous future for North Tonawanda.”

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