The Town of Batavia passed a resolution opposing the taking away of Video Lottery Terminal(VLT) revenues by NYS at Wednesday nights Regular Town Board meeting.
According to Town Supervisor Greg Post, with a $170,000 budget shortfall created by the proposed termination of VLT revenue in the NYS budget, the Town of Batavia’s tax rate will increase from $2.45 to $2.85. A 16% increase, which is greater than the annual NYS tax cap mandate of 2%.
The resolution passed 5-0 and copies will be sent to Governor Cuomo, the Lt. Governor, State Senator Mike Ranzenhofer, Assemblyman Steve Hawley, the Genesee County Legislature and the City of Batavia.
The Town of Batavia will now receive no reimbursement for the expenses that occur with hosting the Batavia Downs Casino. The Town is now forced to consider cuts in Town-wide services, the number of employees and employee benefits to offset the large loss in revenue.
Post says there are expenses with hosting Batavia Downs Casino in the Town of Batavia.
“Everyone likes the casino and the economic benefit, but the fact of the matter is that when NYS took it over, they took the private property off the tax rolls, so no property tax is coming to the community, but we still provide all the services. There is nothing to offset the cost of snow operations, signing operations, design operations, water and sewer operations, court operations, clerking operations and increased traffic and maintenance to the highways,” explained Post.
Post says the first check from the state over 10 years ago from VLT revenue was a surprise. The Town of Batavia used it to reduce the fund balance.
“We’ve been accepting the money, but never for sure knowing it was coming each year.”
The NYS Comptrollers Office says any repeating revenue has to be included in the Town’s records as revenue. Post says this is the first year the Town included that revenue in their budget, because it has been over 10 years they have been receiving VLT revenue from NYS.
On top of the loss of $170,000 in VLT revenues, the Town is also having to look into hiring another employee in the court. Post says the cost of operating the court has gone up by 20% because of the bail reform law that went into effect in January.
“We are concerned,” says Post.
“The only way to express this is through a resolution to the Governor so he will reconsider in taking this money out of the budget. I implore the Governor to reconsider because it has a profound impact.”