By Mike Pettinella
For Video News Service
The City of Batavia is in “a relatively good financial position” heading into work sessions later this month on its 2025-26 budget – a $22.4 million general fund spending plan that currently calls for a 50-cent decrease in the property tax rate.
That’s the latest word from City Manager Rachael Tabelski, who led a 53-minute conference call with members of the local media on Friday morning.
Tabelski was joined by Assistant City Manager Erik Fix and Deputy Director of Finance Lisa Neary on the call which covered information found in the city’s 222-page full-color budget book titled #TOP City – Tradition, Opportunity, Prosperity.
Link to Budget book: https://www.batavianewyork.com/bureau-of-finance/pages/city-budget
2025-2026_budget_book_final_1.13.25.pdf
The first work session with City Council (revenue) is scheduled for 5 p.m. Jan. 27. Other sessions are at 6 p.m. Feb. 4 (fire, general government and general administrative services), 6 p.m. Feb. 6 (police and Department of Public Works) and 5 p.m. Feb. 10 (water and wastewater).
Tabelski, on the phone call, said the completed budget must be delivered to City Council, per the City Charter, by Jan. 15.
The 2025-26 budget, which runs from April 1-March 31, is balanced, maintains the current level of service and maintains current staffing levels, Tabelski said. She is proposing a tax rate of $8.46 per $1,000 of assessed value – down from the $8.96 rate in 2024-25.
“The city continues to have a balanced budget in a relatively good financial position,” she said. “We have an unassigned fund balance of 21 percent. Our policy dictates that we try to move that unassigned fund balance to 25 percent. So, we’re slowly moving towards that. And that was a change that was made during COVID.”
The city manager quickly noted that expenses for retirement (increasing by $400,000) and health care (increasing by $600,000) are up by $1 million combined and that projections of sales tax – the city’s biggest revenue source – are nearly flat.
“We do not and have not projected just a very slight increase in sales tax,” she said. “We needed to be very conservative in budgeting for an increase of sales tax in this year’s budget.”
General Fund Major Revenue Sources
Sales tax revenue is at $7.8 million – the city receives 14 percent of all sales tax generated in Genesee County – and the property tax levy is not far behind at $7.2 million.
Other major revenue sources are:
— Aid and Incentives for Municipalities (flat at $1.7 million).
— CHIPS (Consolidated Local Street and Highway Improvement Program) $900K.
— Appropriation of unassigned fund balance $526K, more than that has been used in the past.
— Retirement Reserves $310K.
— Water Fund transfer $300K.
— Departmental Income $250K.
— License and Permits $215K.
The budget does not include Video Lottery Terminal (VLT) aid.
“In 2019, it was taken out of the (New York) State budget and then put back in,” Tabelski said. “So, the safest thing for the city is not to budget that revenue (usually around $440,000 annually) because it’s not a consistent revenue item for us.”
General Fund Major Expenses
As far as general fund expenses go, public safety (police and fire protection) accounts for $10.5 million or 47 percent of the budget.
Other major expense accounts are:
— Public Works $5.1 million.
— Healthcare $4.9 million.
— Retirement costs $2.9 million.
— Street and sidewalk investment, using CHIPS funds $1.2 million.
— Capital investment (vehicles, buildings, and parking lots/sport court resurfacing) $540K.
— Funding reserves (preparing for bond payments for Police Facility) $1 million.
Tabelski said that annual payments for the new police station being built on Alva Place are $850,000 to $950,000 annually, including interest, for the next 20-25 years.
“Our budget focus is on maintaining our core services, which are public safety (police and fire), Department of Public Works and making sure we have continuing work with vibrant neighborhoods and quality of life for all our residents,” Tabelski offered.
She added that the city is “experiencing a season of growth with continued investment in commercial, residential and public infrastructure.”
“The housing market remains extremely active, with only a few listings. So, we are in the process of helping any developers that want to build single-family homes or market rate apartments that will attract more tax base to the city.”
2024 and 2025: Banner Years for Capital Projects
Tabelski touted the city’s public works capital project achievements in 2024 and the large number of projects on tap for 2025.
In 2024, capital projects completed included work at Jackson Square, City Centre entrance, Jackson Street Water Improvement and Bank Street Water Improvement. Additionally, the Single Family Home Renovation initiative will wrap up this summer with renovation of 10 houses.
Ongoing capital projects are as follows:
— Police Facility construction on Alva Place will conclude in August of 2025.
“So far, we remain on time and on budget,” Tabelski said.
— Brisbane Mansion RFP will be issued in February 2025 to developers, with an April 2025 deadline for submission to the city
— Ice Rink Chiller project will start in March of 2025 and be ready for the 2025 hockey season
— Bank Street Streetscape project construction summer 2025, which coincides with the new police station construction
— Cohocton/Walnut water main projects construction 2025
— Austin Park Playground, a $750,000 venture that is covered by a $500,000 grant.
— Water Plant WIIA grant, finish pump and precipitator and close out project in 2025
— Wastewater Treatment Plant planning for multiple projects.
Tabelski said the improvements at the wastewater treatment plant are about 80 percent complete and will allow the plant to continue to operate for the next 15 years.
— Street resurfacing and corresponding sidewalks
— Grandview Terrace Resurface and Complete Sidewalk Replacement
— Kingsbury Avenue Resurface and Complete Sidewalk Replacement
— Street resurfacing on Watson Street, Morton Avenue, Ganson Avenue, South Spruce Street and Union Square
— City Centre West Parking Lot mill and repave, using city reserves
— Tree removal and planting.
“This project will span three years and will add up to 1,000 trees to the City’s urban forest, mainly in the Fifth and Sixth Wards and a portion of the Second Ward,” Tabelski said.
Increases in the City’s Assessed Value
Tabelski was happy to report that taxable property values in the city increased by $102 million or 13.68 percent from last year.
“We don’t typically see such an increase in assessed value, but we did have a reassessment of residential properties, and we do have commercial properties that are rolling off PILOTs (Payment in Lieu of Taxes) and also increasing in value because of improvements being made to those structures, especially in the downtown area,” she said.
There are approximately 5,700 properties in the City of Batavia that support the city’s general fund operating budget. Property taxes make up 32 percent of the city’s total budget in fiscal year 2025-26.
Since 2017, the city’s I’m All In campaign has resulted in $152 million in completed public and private investments, $30 million of investment under construction and another $70 million planned by 2028, Tabelski said.
“In total, we have over $254 million of investment taking place in the city. With our strategy of trying to increase the tax base … you’re spreading out the amount that the average taxpayer has to pay. We think we’re doing a really nice job with that … and hopefully, continue to stabilize the tax rate or lower it for our citizens.”
Increase in Public Safety Costs
Tabelski said that spending for public safety expenditures has increased by $800,000, primarily due to reaching full staffing status in all positions as well as contractual raises, technology subscriptions, investments in Neighborhood Enforcement Team (NET), and high retirement costs.
She noted that bail reform, high call volume, mental health crisis and drug use has increased the call volume and length of time on each call our public safety officers spend on scene. Vehicle and larger equipment purchases are offset by reserve revenue in the budget and does not contribute to increased expense.
City Centre Fund Details
The City Centre Fund, with a proposed budget of $333,310, exists to pay for city operations and maintenance responsibilities for the City Centre concourse.
Tabelski said the user fee for businesses in the City Centre remains unchanged for 2025-26 at $2.15 per square foot.
While not addressing the ongoing lease negotiations with the Batavia Players, tenants of Main St. 56 Theater, she did say the budget calls for the use of facility reserves in the amount of $310,000 to repair the theater roof and add new heating and air conditioning units.
The budget book also indicates the city has applied for a Pro-Housing Community grant of $500,000 to begin work on the flooring, lighting, interior celling, and bathrooms inside to (create) a better event and gathering space.
City Capital Projects FY25-26
