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**Date:** 10-29-24
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*An important note: This is your mayor’s vision. The Council will decide. *
Pressure makes diamonds. But it’s in the carving that a diamond shines.
There is no greater pressure on the representatives of the city of Oneonta than in crafting their response to the challenges of an ever-tightening budget. The skill and strategy with which we chisel and shape our financial future will decide what kind of city Oneonta will be for years to come.
The Council is seemingly faced with two choices: to raise taxes at a rate significantly beyond the tax cap, or to cut services. You’d be hard-pressed to find “fat” in the budget, so cuts would be painful and impactful to our quality of life.
There is a third choice that I’d like considered. Invest more in the city, not less. Strategically approached, it could be a catalyst to a better, sustainable economy for the city and its government.
Taxes are a portion of the city’s funding stream, but in my opinion, when a minority percentage of property-owners must account for the balance of property taxes, the return on an escalating tax rate is not significant enough to warrant the added burden.
In comparison to other upstate municipalities, Oneonta has an attractive tax rate. But we are also a community in which the percentage of seniors (relative to year-round residents) is about one-third. Nearly three-quarters of those over sixty-five own their homes, and as a demographic they are in sync with the national averages of those on fixed incomes and within proximity of the poverty line. All of which begs the question, who are we asking to shoulder this growing burden?
Additionally, how do we retain young families who must cope with the increasing financial stress of home ownership? And perception informing reality… How do we attract others?
I believe that in our third choice, we can finally realize the aspirations of earlier leaders who saved and saved, so that in a time of trouble we would have the resources to find safety and regain our footing.
They could. The city’s healthy economy allowed it. Thank goodness.
You should know that Oneonta compares well to other upstate cities. Our fund balance is just a few ticks below our projected annual expenditures.
The city’s finances have been extremely well managed, and we’ve built an impressive cushion. We are respected for our transparency and reporting, and our credit and bond ratings are enviable.
Beyond taxation, there’s less support than needed coming from other sources, and the city is facing real challenges. Our population (and workforce) has suffered a long decline, and that has bearing on the decisions of large employers and industry. Our small shops and restaurants incur loss after monthly loss, and the perceived lack of vitality, security, and convenience of Main Street is a narrative with roots.
I am deeply concerned that unless our city takes a new and decisive turn of direction, we could enter a spiral from which we may not recover.
And so, the need for a “third choice” with two components:
The first is to assemble a group of committed citizens to bring their expertise and collaborative energies into action. To identify and help implement strategies that address our issues of vitality, security, and convenience while bringing new and expanding funding streams to the city.
The second is to intelligently and precisely take advantage of the resources that have been built.
We’ve been blessed by the diligence of others in the creation of what’s been called a “rainy day fund.” I don’t think it’s arguable, this is that rainy day.
I am advocating for a tax hike that doesn’t exceed the cap, balancing the budget with assistance of the General Fund, and exercising vision in support of the priorities of our City’s Strategic Plan.
In my view, the need to “spend money to make money” has never been greater.
I’d never advocate for a policy in which we annually spend down our nest-egg. That would be gross mismanagement, and impactful to the city’s financial standing and its ability to borrow at a low interest rate.
However, in this moment I would urge that we employ a strategy in which expenditures are justified by our faith in their return.
We need to address the concerns of shop owners by investing in programming and communications that foster a new identity of Oneonta as a destination city. We must support the need for additional officers so that we can increase police presence both downtown and in our neighborhoods, and relieve those working long hours and extra shifts for our protection.
Rather than cuts to service, we must focus instead on how to improve and promote the recreational and environmental assets that are necessary and marketable.
Recruitment and retention of population and business MUST be our goal. It will take a commitment to vision and faith in the outcome. It will take shared understanding and buy-in from the community. It will require public and private partnership. It will take vigilance, cooperation, creativity, dedication, resolve, and a strong spine.
This is not a reprieve; this is a call to action.
