Binghamton Mayor Matt Ryan discussed how the city is confronting the ongoing recession Wednesday in his 2011 budget address.
Mayor Ryan cited new police union contracts, personnel cost reduction and further action from citizens and government officials in three key areas as ways to prevent Binghamton from reducing urban municipalities services by 2013.
He proposed a 3.68 percent residential tax and 7.98 percent commercial tax increase for 2011, saying it would provide critical services and long-term investments the community needs to grow and thrive.
‘Despite all our efforts, there is only so much the city can do before we have to slash services,’ Ryan said. ‘It is at times like these that we must demand relief from those who are burdening our city with unsustainable costs.’
New costs have hindered the Ryan administration’s ability to allocate the 2011 budget. Where the administration initially had $1.5 million available to allocate, new costs included a $1.4 million increase to the city’s annual health care bills and $1.5 million in additional pension payments.
The city of Binghamton has agreed to share its Police Chief and Assistant Chiefs with Johnson City. The Police union has endorsed a new contract in which it will receive retroactive pay raises up until 2010, and forgo pay raises in 2011. Ryan said these actions are estimated to save taxpayers $100,000 and reduce 2011’s tax rate by one percent.
‘It is my hope that this important gesture will carry over to our other unions so that we have the strength to weather the worst economic times we have faced in generations,’ Ryan said.
The police, fire and public works departments cut five percent of their respective budgets, or $500,000 individually. Police will leave open five currently vacant positions, fire will not fund three currently open positions and public works found in-house cost-saving opportunities such as retrofitting existing equipment and vehicles.
Ryan asked citizens and government leaders to take action toward ending tax cuts for the wealthiest two percent of Americans to potentially receive $700 billion, holding state aid to limit property taxes, and changing the sales tax distribution formula for municipalities to receive a fair amount.
He also announced $9 million in grants for housing repairs and construction.
Additional strategies to stimulate growth included Ryan’s support of the $80 million Newman student housing project, scheduled near the University Downtown Center, which was done with the hope that it will increase the vitality of Downtown Binghamton.
Barry Koffman, a Binghamton landlord and property manager, maintained that residents could not afford any more commercial or property tax increases.
‘The unions are just telling him what to do,’ Koffman said of the Ryan administration. ‘They’re not willing to make the tough choices to stand up for residents.’
Ryan said labor group relations are important to providing better and more affordable constituent services. He also said cooperating with these labor groups has limited taxes and supported working families. Two-thirds of the city’s budget is currently dedicated to personnel. The police, fire and public works departments make up 90 percent of all personnel costs.
Kathy Reno, a retired Binghamton resident and part-time antiques business owner attending the budget announcement, said she could not afford any tax increases. She said her property taxes increased from $2,000 to $8,500 in the six years since she has moved to Binghamton, and that she was finding it increasingly difficult to pay for her living expenses.