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Mon, Nov 09 2009 

Published: November 18, 2008 11:00 pm    print this story  

Council reviews budget increases

By Jake Palmateer
Staff Writer

ONEONTA_ The Common Council was presented Tuesday night with a preliminary $18.3 million budget for 2009 that represents an 8 percent increase in spending over this year's budget.

Aldermen also rejected a summer-rental permit and delayed action on college Greek house permits during the Council's meeting.

The budget spending increase is being driven by personnel costs, especially health insurance for employees and retirees, said Second Ward Alderman Paul Robinson.

Health insurance for employees is up $182,100 over the 2008 level, or 15.9 percent, and health insurance for retirees is up $221,000, or 24 percent, said Robinson, chairman of the city Finance, Personnel, Operations and Legal Affairs Committee.

The city expects to collect $4 million in property tax revenues to fund its operations, an increase from the $3.8 million it planned to collect this year.

This translates to an anticipated 3.6 percent increase in the tax rate, Robinson said. The overall tax levy would still be less than in 2005.

Mayor John Nader said a homeowner with an assessment of $85,000 would pay an additional $37 over the taxes he or she paid this year.

The spending plan also includes increases in the water and sewer rates paid by property owners in the city of Oneonta, as well as for customers in the town.

The amount of state aid the city will receive is still in question, Robinson said.

"We don't really know what's going to happen with the state at this point," he said.

Under the plan, the city would apply $1.1 million appropriated from its fund balance to the 2009 budget, an increase of $295,966 over what was applied from the 2007 fund balance to the 2008 budget.

Robinson cautioned aldermen that the city needs to remain fiscally prudent.

"I don't think that it can be a year of business as usual," Robinson said.

Next year, when there are requests for funding that are not in the budget, they have to "really be scrutinized," Robinson said.

A budget workshop is scheduled for next Tuesday at 7 p.m.

In other business:

ä Aldermen, by a vote of 7-0, denied a summer-rental permit to Robert S. Steenrod for 46 Church St.

This was the first review by the Common Council of a summer-rental permit application since aldermen revised its ordinance earlier this year.

Fourth Ward Alderman Mike Lynch said the property would not be appropriate for use as a summer rental due to parking and traffic concerns, as well as its overall impact on a block where the number of single-family homes has declined in recent years.

Steenrod was not at the meeting, but two neighbors spoke out in opposition to the issuance of the permit.

ä Seventh Ward Alderman Lizabeth Shannon said a motion to issue special-use permits for four Hartwick College Greek house would be held over until the Dec. 2 meeting of the Common Council. This was due to the city not having all of its paperwork in order.

The Gamma Phi Delta sorority at 23 Elm St.; the Phi Sigma Phi sorority at 6 Myrtle Ave.; the Alpha Omicron Pi sorority at 17 Maple St.; and the Alpha Delta Omega fraternity at 62 Elm St. are applying for their annual special-use permits.

About 20 members of the Greek groups attended the meeting.

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