City Manager hails 'Once-in-a-lifetime' budget

Apr. 25—WATERTOWN — City Manager Kenneth A. Mix is calling his $56.5 million spending plan "a once-in-a-lifetime budget."

The 389-page proposed budget includes 24 new positions and 68 infrastructure and other projects that will cost $23.6 million.

Under the tentative budget, the tax rate is down 1.74%. The tax levy increases will be 0%. Better-performing sales tax and hydroelectric revenues are also helping the city with its bright financial picture, Mr. Mix said.

The city is using nearly $11 million in remaining American Rescue Plan Act funding to pay for "an unprecedented number of capital projects in a short time," but the city "is not staffed to handle that many projects," according to Mr. Mix's budget message.

The proposed budget was released to the public and the media on Monday morning. Council members received the spending plan on Friday afternoon. "It's a once-in-a-lifetime budget with projects that we were never been able to do until now," he said after it was released. "There's something for everyone."

The ARPA funding includes a series of recreational projects, including $3 million for renovations at Thompson Park, $1 million for Zoo New York Adventure Land and other Phase One improvements and about $2 million each for Black River Parks and Trails and sidewalk reconstruction.

Mr. Mix warned council members that decisions must be made how the money will be spent so that the city can start planning the projects to complete them by the ARPA deadline.

The city is required to have construction contracts in place by the end of 2024 and for them to be finished by Dec. 31, 2026.

The new positions include five firefighters being covered by a federal grant, five positions in the police department, a deputy comptroller, a couple of new engineers, a city planner, a secretary in the codes office and five public works employees, a fleet officer and an assistant superintendent.

The positions in the police department include an evidence officer, warrant officer and patrol officer, a detective and a sergeant for the county drug task force.

Over the weekend, Mayor Jeffrey M. Smith warned that the city has to be financially smart about how it handles its pocketbook in the years to come, adding that the city will be losing millions of dollars in hydro revenues from a contract with National Grid ending in 2029.

"The city is currently in a financial situation that I am not aware of having ever happened before," Mr. Mix wrote in his budget message.

"All the above will be done while keeping the property tax levy the same as the current year."

Under the financial document, $5.5 million of Fund Balance is transferred into the Capital Reserve Fund ($5 million) and the Tax Stabilization Fund ($500,000).

The Capital Reserve Fund will provide money for projects after the city completes the current round of projects.

The only borrowing proposed in the general fund is for the refurbishment of two fire trucks.

Like they do every year, council members are expected to schedule a series of budget sessions to discuss the financial document in May.

Mr. Mix will have a better idea about the upcoming budget deliberations after Tuesday night's council work session that will include discussions on road paving and water and sewer projects.

Council members are expected to set up some budget meetings then.