Ë®¹ûÅÉAV

When city's budget process began, officials acknowledged there was a "significant" gap. The shortfall was reduced to $2.8 million through increased revenues and cuts to expenditures, including $550,155 for salaries and overtime that was achieved by slashing vacant positions. Another $362,694 was cut from the budget for equipment purchases, such as new police cars.

Auburn City Comptroller Mary Beth Leeson told the City Council Thursday how they reduced the budget gap by another $1 million. While they identified additional revenue, cutting expenses contributed to the deficit reduction. The city slashed another $151,750 for salaries and overtime and aims to lower its energy budgets by 10% to save $55,822.

Energy costs were among the budget challenges listed by Leeson. She said the city's natural gas bills have increased by 22% and electric is up 19%.

Other challenges include fringe benefits for employees. The city's share of dental insurance is up 25%, while health insurance increased by 19%.

Another action taken by Leeson to address the shortfall is dipping into the city's fund balance. She did not want to do that this year because the fund balance is low and the city is trying to build it up. But she felt comfortable using $500,000 to help close the budget hole.

"I am being very cautious about this," Leeson said.

With a month to go until a final vote on the budget, the city is left with a $1.8 million shortfall. Leeson noted the deadline for a retirement incentive being offered to eligible employees is May 17, so the savings generated from that program remain unclear.

The 2025-26 state budget contains some good news for Auburn, which could help the city erase its remaining deficit. The state budget will continue to provide temporary municipal assistance — for Auburn, that's an additional $578,000 — and the city will get $200,000 for operating the New York State Equal Rights Heritage Center.

The most important item for the budget is the authorization to charge a hotel tax. Leeson said city staff planned to meet Friday to discuss the next steps for implementing the tax.

The state budget allows the city to charge up to 5% for hotel stays. Auburn City Clerk Chuck Mason told the council in 2024 that the tax could generate $500,000 in annual revenue.

Auburn Mayor Jimmy Giannettino said the tax is "a tool that most municipalities across this state are using due, in large part, to the lack of increases in AIM funding from the state." AIM is the Aid and Incentives for Municipalities program, which provides unrestricted state aid to cities, towns and villages. Auburn's AIM funding has not increased in more than a decade.

Giannettino also responded to critics who say the city should not rely on the state to close its budget gap.

"That is money that we sent to New York state that comes back to us," he said, crediting state Sen. Rachel May for advocating on behalf of the city.

The next step in the budget process will be public hearings on the city budget and a proposal to override the property tax cap. Both hearings will be held at the May 22 City Council meeting.

In other news

• The city will not increase its water rates in 2025-26, according to Leeson.

With increased volume expected due to Cayuga Milk Ingredients' expansion and an ongoing wholesale water rate study, city staff opted to hold off on an increase. Leeson said rate changes "may complicate" the rate study discussions.

Sewer rates will increase by 2%, which Leeson notes aligns with its rate study model. Seth Jensen, the city's director of municipal utilities, said it would increase bills by a few cents a quarter.