Palmieri Proposes Budget with No Tax Increase for Fifth Consecutive Year

UTICA— Utica Mayor Robert M. Palmieri unveiled his proposed budget for the fiscal year 2023-2024 budget with a zero percent tax increase. If adopted, the $79.892 million budget proposal would mark the fifth consecutive year that taxes were either flat or lowered.

The new budget proposal was challenged by rising costs, higher interest rates and supply chain constraints. Some of these constrains include:

• Healthcare cost went up nearly 30 percent, or roughly $2 million total.
• The City’s total retirement contribution increased 10 percent.
• Most of the City’s labor unions agreed to contracts that included 3 percent raises
  
  

Despite these and other challenges, the City avoided a tax increase by collaboratively with City Comptroller Bill Morehouse and the Common Council, Mayor Palmieri said. Further, the City has been able to make necessary investments to grow Utica while keeping on a positive financial trajectory.

This positive trajectory has been recognized by all of the financial rating institutions. Over the past several years Fitch Ratings, Moody’s and Standard & Poor’s Global Ratings have all upgraded Utica’s credit rating. The City is currently seeking further upgrades that, if realized, will continue to improve borrowing rates.

Just 12 years ago, the City had completely depleted its reserve funds. Now, our total general fund balance stands at $14.1 million.  Total unrestricted and available fund balance is $10.3 million, just $2.2 million short of the administration’s $12.5 million goal as recommended by the Government Finance Officers Association.

A key indicator of economic development is growth in sales tax, and the city has seen a consistent increase in its sales tax revenue and this past fiscal year, sales tax increased again, up 26 percent year-over-year to $18.1 million.  

The Mayor emphasized that the City is slated to make necessary investments in infrastructure, housing and the City’s parks system with our a tax increase. The ability to make these investments while retaining an adequate fund balance is the result of prudence and partnership over the course of several years.

Utica Mayor Robert M. Palmieri said: The explosive growth we have seen in Utica has been accompanied by an equally-impressive fiscal revitalization within the City’s budget. We have restored the City’s credit ratings, replenished the fund balance and  put the City on track for a sustainable future. The members of my administration, the Common Council and Comptroller Morehouse have all worked hard to collectively to put Utica on track for long-term success.

Comptroller Bill Morehouse said: “The turnaround in the City’s finances have been the result of hard work, planning and partnership. This budget will ensure that our needs are taken care of, while holding the tax line on households that have seen costs go up everywhere else.  In this environment, it’s difficult to present a budget that doesn’t raise taxes, but it’s necessary for our residents.”