Hornell passes budget with slight property tax decrease. What to know about spending plan
Tax bills are expected to decrease slightly in Hornell as the Common Council on Monday night approved its new budget for the 2024-25 fiscal year.
The General Fund features a 0.5% property tax decrease, according to the city. Mayor John Buckley noted the city was essentially able to keep the General Fund flat despite inflationary pressures in the prices of materials and supplies across city departments.
City revenues actually increased by a little over 1.5%, boosted by sales tax revenue and Payment in Liu of Taxes (PILOT) agreements that helped the city overcome some increased costs.
Buckley credited department heads, city personnel and City Chamberlain Michele Smith for holding the line on spending and producing a budget with relief for taxpayers.
“The inflation and price increases experienced by consumers are also felt by municipalities,” Buckley said in a statement. “While these prices do appear to be leveling off, many of our material and supply expenses surpass amounts for last year. This is most evident with the chemical costs for our Water Treatment Plant and Water Pollution Control Plant, but we see it everywhere, with rising prices of fuel and building materials as well.”
The Common Council unanimously approved the proposed budgets for both the General Fund and the Water Fund.
Finance Committee Chairman Robert Colucci, the 9th Ward Alderman, noted the city was able to keep the change in appropriations to just over 3%.
"This was clearly not an easy task given the inflationary pressure of our economy," said Colucci. "It’s remarkable the city has been able to increase revenue by 1.58%, which has been buoyed by strong sales tax revenues and PILOT payments. These budgets are a testament to the fiscal responsibility of Mayor John Buckley, Chamberlain Smith, all of our dedicated employees, and our city’s strong economy.”
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Buckley and Smith noted the city achieved the tax decrease while in the midst of major grant-funded construction projects that require a local contribution, such as renovations of Main Street and an overhaul of James Street Park.
"Although our budget reflects a small decrease in our tax rate, I hope it shows our taxpayers we are working to keep expenses under control, while providing services, despite our highly inflationary times," added 10th Ward Alderman John Carbone, a member of the Finance Committee for 19 years.
This article originally appeared on The Evening Tribune: Hornell passes 2024-25 budget with slight property tax decrease
