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Thane submits budget objections

Mayor Ann Thane announced Monday that she has submitted three line item vetoes or “objections” to the budget passed May 29 by the Common Council.

The three objections are to changes made by the council to the following lines: 1) A $100,000 decrease to the city’s health insurance line, 2) an increase of $40,000 to the proposed $950,000 transfer from the water fund to the general fund, and 3) a $30,000 decrease to the mayor’s proposed $40,000 marketing line.

Thane had proposed an increase in marketing spending this year in order to “help promote the soon-to-be completed Mohawk Valley Gateway Overlook, update the City’s website, and otherwise improve the image of the City of Amsterdam.”

Thane said in her statement, “I would object to all of these modifications if I had the votes to support my objections. Instead, I will only object to certain items that will lessen the negative financial impact of this budget in the hope that the Common Council will reconsider its actions.”

She also said, “The modifications made by the Common Council substantially underestimate expenses for the city’s health insurance program and numerous other areas…The net result will be a significant deficit across all operating funds at the end of the fiscal year, while simultaneously damaging the ability of city staff to provide services.”

The council may override these objections with at least four out of five votes.

Click here to read the full statement on Thane’s blog.

Editor’s note: The mayor has since withdrawn one of her objections. See her comment below…

 

About Tim Becker

Tim Becker is the owner of AnthemWebsites.com LLC which publishes The Compass. He serves as both editor and a writer.

One Response to Thane submits budget objections

  1. I made a mistake.
    REVISED:
    All, an error in my calculations was brought to my attention. Therefore, I withdraw my objection to the elimination of marketing funds, as this will take the budget over the prescribed tax cap. However, I point out again that this cut would be unnecessary had the council taken the ambulance service in-house. My revised veto is as follows:

    OBJECTION TO BUDGET MODIFICATIONS • Resolution #14/15-241
    In order to protect the interests of the taxpayers of the City of Amsterdam, I am objecting on this date, June 9th, 2015, to the following modifications to the proposed budget contained in the adoption resolution #14/15-241.

    In general, the budget I proposed contained accurate and realistic estimates of revenues and expenses. It is unfortunate that the Common Council has decided to forgo the city ambulance proposal and thereby increase the tax burden on our property owners. In-house ambulance services have been proven beneficial to municipalities across the state in the way of hundreds of thousands of dollars in new revenue unrelated to property taxes or utility fees.

    The modifications made by the Common Council substantially underestimate expenses for the city’s health insurance program and numerous other areas. The problem with doing this is that the “cuts” are not real; the costs that many of these items estimate are not entirely under the control of the city. The net result will be a significant deficit across all operating funds at the end of the fiscal year, while simultaneously damaging the ability of city staff to provide services.

    I would object to all of these modifications if I had the votes to support my objections. Instead, I will only object to certain items that will lessen the negative financial impact of this budget in the hope that the Common Council will reconsider its actions. These objections are also constrained by the various tax caps.

    OBJECTIONS:
    1. Item 37 – Remove an additional $100,000 from the health insurance appropriation.
    Removal of this modification will reduce the amount of the year-end deficit that will be caused by the underestimating of this expense. Again, this harkens to my prior veto of Resolution 240 citing the “practice of the County Board of Supervisors that earned negative comments during a recent audit. The OSC noted that the supervisors had adopted budgets that were structurally unsound, “The County’s declining financial condition is the result of poor budgeting and financial management practices, and the board’s failure to develop and use long-term financial plans”.” I reiterate, we should not make the same mistake here.

    2. The amendment to increase the transfer from the Water Fund to the General Fund by $40,000 sponsored by Alderman Barone.
    Removal of this amendment will prevent the loss of taxing power under the 2% annual tax cap. Retaining flexibility under this cap is important, as it will allow future administrations to more easily comply with the state-mandated cap and secure the associated compliance checks for our residents. It is particularly concerning that this action was taken so swiftly, without proper justification, analysis or thought, after lengthy discussion about the negative impact the loss of taxing power has on our taxpayers. Please refer to the OSC citation in reference to Item 37.

    It is my hope that the Council will recognize my restraint in crafting this veto and that they will concede these few points to better serve our taxpayers.

    In light of the aforementioned points, I hereby veto this budget resolution.

    Mayor Ann M. Thane