By JOE LoTEMPLIO
Staff Writer
September 21, 2008 06:54 am
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"It is not going to be an easy year, that's for sure," said Councilor James Calnon (I-Ward 4), who as mayor pro tem serves as budget officer.
The council will host budget hearings at City Hall starting next week department by department. Each department head has submitted their spending plans for 2009 in recent weeks.
"The department heads will come in and tell us about their budgets and hopefully where they think they can find some savings," Calnon said.
Calnon said operating costs so far appear to be down about $120,000, but there are other big costs still looming.
The city is facing the loss of about $850,000 from an agreement with Saranac Power Partners, formerly known as Falcon Seaboard, that is about to end, and it owes about $860,000 in debt service for mandated projects.
"We're about $1.7 million in the hole to start with and that amounts to a 21.5-percent tax increase," Calnon said.
While costs continue to rise, Calnon said, he hopes the city's revenue picture is brightened by increasing county sales tax and state aid.
"We are facing some serious issues, and we will have to see what we can do about things that we can control," he said.
The budget work sessions will go until the end of the month. Calnon said he hopes the council can come up with a final plan by December.
Typically, the mayor submits a budget to the council by Oct. 1, and then the council has until Jan. 15 to adopt it.
This year, Mayor Donald Kasprzak changed the procedure and called for himself and the council to work together throughout the fall on the spending plan.
"Difficult times call for difficult measures, and the next three weeks and then some, will be very challenging," the mayor said.
jlotemplio@pressrepublican.com
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