Without the help of federal funds, Saratoga Springs will not have enough money to make payroll or pay other expenses by June, 2021, Commissioner of Finance Michele Madigan said during the city council meeting last night, Tuesday Feb. 2. The city has run through cash reserves as it has dealt with the effects of the coronavirus pandemic on the city’s fiscal health.
The federal aid, if it comes, is part of the $1.9 trillion package being negotiated in Congress now. In December, negotiators cut state and municipality aid from that stimulus package.
“Without [federal] relief, the city remains poised to experience a substantial dip in cash flow come June of 2021 which will result in insufficient funds to meet payroll and other expenditures, so let’s hope things go well with the $1.9 trillion aid,” she said.
To make the current budget work--it runs through the end of the calendar year--the city has borrowed $11.3 million at very, very low interest. The amount to fund the government starting in June would be another $5 million or $6 million she said in an interview today.
“We can’t borrow our way out of this,” Madigan said, having said that the city has already saddled future generations to pay back. “I think we have done a sufficient amount of borrowing.”
As well, the state budget has cut “another” $1.5 million for the operation budget this year, she said.
This cut comes as the governor’s proposed budget zeroed out the city’s $1.1 million Video Lottery Terminal tax, and another $360,000 expected to be cut from the state’s Aid and Incentives for Municipalities funding. That number is currently budgeted at $1.8 million.
If the VLT and AIM cuts are sustained by the legislature, the city will need to enact a “substantial revision” to current spending through 2021.
The lobbying to reinstate that funding in the state legislature has already begun.
Madigan and Mayor Meg Kelly said they both plan to address a joint session of the legislature Feb. 11, “Local Government Day,” arguing that the state should send the Video Lottery Terminal tax back to the localities that generated it.
The VLT is a tax that is collected around the state from locations such as the Saratoga Hotel and Casino where the gambling terminals are located. The resort reported $25.8 million in net receipts during the final four months of last year, according to documents reported to the New York State gaming commission.
Anthony “Skip” Scirroco said later in the meeting that the council needed to join with other municipalities to fight for the VLT. Both county supervisors who represent Saratoga Springs, Matthew Veitch and Tara Gaston, said they would work with the city, write letters and lobby state legislators.
Also on the docket last night: the city adopted the 2021 tax roll, a total of $34.9 million. Tax rates listed are per $1,000 of assessed value of real estate.
For inside districts:
- City, $6.4331
- County, $3.897426
For outside districts:
- City, $6.374
- County, $3.897426