Mayor Malik Evans’ released a $680.5 million budget proposal Friday that is smaller than the current year but nonetheless would result in slightly higher property taxes for homeowners.
Water bills also will increase. But the city otherwise holds service charges flat. And commercial property owners could see a tax decrease.
The difference in tax rates for residential and commercial is the result of a state-calculated shift meant to balance the tax burden between the two classes. The tax levy, or total property taxes collected, would not change, as the city tightens its belt amid stagnant sales tax revenue and economic uncertainty.
“We're not going to let momentum stall, even with the uncertainty that is taking place at the federal stage,” Evans said. “We're going to keep moving Rochester forward by being nimble and resilient.”
City Council has until mid-June to approve the budget and will begin deliberations later this month.
If approved, the average homeowner would see their tax bill increase by $2.30 per month, while, commercial properties would see a drop of $34.55 per month. The average home, using 60,000 gallons of water per year, can expect an increase of $18.26 per year.
The mayor’s spending plan is $27 million smaller than the current year. That reduction is largely accounted for by an end to American Rescue Plan Act or federal pandemic relief dollars, representing $20.1 million of the decrease. The city was awarded $202.1 million in federal aid in 2021 and has used the money to fund a litany of programs, from lead pipe remediation to pilots like Guaranteed Basic Income. That money has now been entirely allocated.
The remaining $6.3 million in cuts comes from the Capital Improvement Plan and operations, which Evans said is necessary to meet growing pension costs and the sagging sales tax revenue.
Sales tax revenue dropped by $10 million in the budget proposal, while pension and healthcare costs increased by $14.9 million.
Budget director Suzanne Warren said the sales tax revenue represents a trend of consumers spending less on non-essentials due to inflation and other economic uncertainty.
“The county is kind of in the same situation as well," Warren said.
City officials are working on contingency plans should they have to make further cuts, she said. Top of the list are pauses on studies and filling of vacant positions.
“We have multiple levers we can pull,” Warren said.
A particularly devastating turn for the city would be if President Donald Trump follows through on a promise to pull federal funding from sanctuary cities like Rochester. That move was blocked by a federal court last month. If it went through, Warren said, it would pull about $5 million of staff funding from the city.
Rochester entered the spotlight of the sanctuary city debate last month, when the federal administration sued the city over its policies. Last month also saw a visit from Trump border czar Tom Homan, who came to Rochester to meet with the Rochester Police Locust Club and other law enforcement organizations from around the country.
Despite the economic concerns, this year’s budget largely shows stable funding for city programs. For example, the Rochester Police Department saw a 1% increase to $115.4 million. The Rochester Fire Department saw a 4% increase, to $66.8 million. Libraries saw a 2% increase, to $5.6 million.
The Police Accountability Board, which faces an ongoing legal battle after a state Supreme Court ruling stripped it of nearly all of its power, saw a 9% cut, ending at $3.3 million.
The budget, while modest in new funding, does include some novel programs. For example, it includes placing a fire lieutenant on full-time code enforcement duties, addressing high-risk properties. That move was spurred by a 2023 warehouse fire on Otis Street.
The budget also sets aside $332,400 for the creation of the ACTION Team. Housed in the Office of Violence Prevention, a part of the Mayor’s Office, the team will offer a police alternative response to non-emergency calls for service. The city has billed the program as specializing in conflict resolution and connecting community members to services.
The first phase of the program is expected to launch this fall.
The budget also continues sustained funding for removal of lead water lines. Evans said the city is on track to complete the total removal of all lead lines by 2030.
Evans dubbed the fiscal document, the final of his first term in office, as his “momentum” budget, a word he also used liberally in his State of the City address. He said it represents a fiscally conservative city offering a consistent spending plan.
“I'm proud of this budget because it continues to fund critical services, cutting edge programs and transformative projects that are propelling the momentum we started building three years ago to move Rochester forward,” Evans said.
The Rochester City Council will begin the budget review session on May 28, with a public hearing scheduled for June 12. The budget is planned to go to vote on June 17.
