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Brown Plans Modest Cut In City Property Tax Rates

City homeowners could see a modest cut in property tax rates this summer, Mayor Byron W. Brown disclosed Friday.

Pointing to a growing cash surplus, Brown proposes creating a $15 million fund for cutting taxes, channeling money into job-creation projects, boosting tourism, and financing quality-of-life efforts.

The mayor said he recognizes “conservative” fiscal policies must continue in light of the state’s budget problems that could cause local fallout.

“I also believe that a small portion of the city’s fund balance surplus should be invested in programs and initiatives that will benefit our taxpayers,” Brown wrote in a letter he sent Friday to city Comptroller Andrew A. SanFilippo.

Brown’s plan to earmark $5 million of the proposed fund for residential property tax relief would be enough to deliver a 3 percent tax cut, according to the budget office. However, the rate could be reduced further through other fiscal actions.

Administration officials cautioned that it’s too early to predict what the mayor’s plan for tax rates will be. He must submit a plan May 1. Following a review and possible changes by the Council, a new budget would take effect July 1.

Brown wants to use another $5 million in surplus money for “regionally significant projects” to create jobs and increase tourism. One possible use could involve assisting developers of the now-closed Statler Towers.

The remaining $5 million in this special fund would be for quality-of-life initiatives, including more money for city parks and anti-crime efforts.

University Council Member Bonnie E. Russell hopes that some of the surplus will be used to hire more police officers, assigned to foot patrols. She pointed to a string of recent shootings, including three in her district.

“I’m sure people in all parts of the city would appreciate seeing more police walking the beat,” said Russell.

SanFilippo earlier announced that Buffalo’s surplus continued to grow for the sixth year. He said there’s currently a $48.2 million reserve that is free and clear of any fiscal obligations, and $33.6 million set aside for emergencies.

“We have a real cushion of nearly $82 million,” the comptroller told reporters.

Buffalo’s total fund balance hit a record-setting $138.6 million, up $5.3 million from last year. But fiscal experts have declared $57 million off-limits based on anticipated costs, including pending court cases and deficits incurred by the city’s trash collection division.

SanFilippo said the upbeat news is tempered by “storm warnings” in Albany that could saddle Buffalo with painful cuts in state aid and dramatic increases in pension costs. Buffalo must continue to practice prudent spending, said the comptroller.

SanFilippo is also touting a plan that could bring future tax relief. The strategy would set aside an unspecified amount of money for neighborhood improvements, paying for capital projects up-front, as opposed to selling bonds and incurring long-term debt. Late last year, a citizens advisory panel that helps the city craft capital budgets each year said the funding earmarked to mend streets, upgrade parks and make other improvements is “woefully insufficient.”

Meanwhile, the president of the city fire union took aim at the bulging reserves.

“The surplus has been built on the backs of the workers of the city of Buffalo, especially the firefighters who haven’t had a raise since June 2002,” said Daniel Cunningham.

The fire union rejected two contract offers made by the city in recent years.