BY JEFF CHUDZINSKINorth Country This Week

MASSENA -- Massena village trustees unanimously approved the 2024-25 fiscal year budget during a special board meeting on April 16, coming in just under the 2% tax cap as planned, however trustees were forced to get creative to do so.

Most department budgets were described as "bare bones" by Mayor Greg Paquin, with only one piece of equipment being approved for the Department of Public Works, along with the addition of another police officer in hopes of saving overtime expenses.

Staffing and services were maintained for all departments, however Trustee Ken McGowan cautioned that residents may not be so lucky next year.

"We squeezed under the cap this year and that's great, but our expenses are going up, the levy and cap are going up. We may not get so lucky next year though," he said.

In order to get under the cap, Mayor Greg Paquin has requested the Joint Recreation Department utilize $150,000 of its fund balance.

That ruffled some feathers however, with Town Board Member Adrian Taraska calling the move "unfair" to the town and its taxpayers.

"It's a joint commission and part of it is funded by the town. How are you able to take all that money witout the commission or town saying it's OK," Taraska asked Paquin.

"Well, because when I look at their fund balance, we contribute 62%, 61% and you guys contribute 38 point something percent. As I figured it, the part of the fund balance belonging to the village was $170,000 and the town had $98,000," Paquin responded.

Taraska debated the point, saying it was his belief that if the village were to contribute 61% but forced the department to spend $150,000 from the fund balance, then the village wasn't actually contributing 61% as agreed upon.

"You're reducing your contribution. We put aside our contribution based on what we thought you guys were going to budget," Taraska told Paquin.

Paquin said the town approved their budget in January, while the village has the right to determine what they would pay in their fiscal year budget.

"And I based mine on what you guys did," Paquin said.

Taraska said town board members were under the assumption that the figures would remain the same when navigating the budget process during the winter.

"We have contributed that portion of the fund balance as part of our overall contribution. So, my budget isn't being reduced, he's just using part of the fund balance," Paquin said.

Taraska questioned whether the commission should have a say on the entire fund balance, a notion Paquin shot down.

"I think it was our contribution and we should be able to decide what to do with it," Paquin said.

Paquin continued, saying the village was entitled to use that portion of the fund balance that the village contributed as they saw fit.

"We pay a significantly higher percentage, around 61%, for joint rec. We are still contributing that, we are just requesting that they utilize $150,000 of their fund balance," he said.

Paquin broke down the contributions further, saying the village contributes $352,846 annually, while the New York Power Authority contributes $234,525 and the town contributes $204,570.

Paquin said when the agreement was signed years ago, it was assumed that the split in cost would remain roughly 50/50.

But with job losses weighing heavily on the town after General Motors and Reynolds both closed, along with Alcoa downsizing over the past 20 years, the assessed values in the village far outweigh those in the town.

Taraska agreed that the contract was struck at a time when higher paying jobs and property values were relatively even between the town and village but argued the village has a larger tax base to pull from in order to fund the department.

"You have a larger population and a larger tax base from the assessed value of properties in the village. That's why the village pays more," he said.

Paquin said it was not a personal decision but one that was prudent for the financial health of the village.

"We share a number of services with the town, including water, fire, and rescue. All at a wonderfully cut rate," Paquin said.

Paquin commented that they could agree to disagree on the move, however the Joint Recreation Department would have to utilize $150,000 of its fund balance to make the proposed department budget whole.

Joint Recreation Director Mike McCabe said the move to use so much of the department's fund balance was not sustainable.

"If we're looking at doing this year after year, removing 150 (thousand dollars), then with 70 (thousand dollars) left, that's just not sustainable. We can't do that and obviously there would have to be changes in something. Whether it's trying to increase our revenue $150,000, removing $150,000 in expenses or a combination of the two. Those conversations would have to happen in terms of what we're looking for from the town and village itself but that's a concern for myself and the board," he said.

Treasurer Kevin Felt also touched on another expense that continues to rise, with minimum wage increases impacting not only full-time employees but part-time summer help as well.

"We've looked at it, it's about a 7% increase each year from 2012. It's about a 70% increase, that's what we were looking at," McCabe said.

In response, he told trustees that NYPA has agreed to adjust the index that is used to calculate the power authority's contribution to joint recreation.

"We're pretty much up to speed on that now with the new 10-year agreement and the additional funding from NYPA," McCabe said.

Felt commented that the increase in wages from fiscal year 2023 to fiscal year 2024 will amount to about $18,000 in additional wages paid out for just part-time employees alone. Those figures do not include full-time employees with benefits, he said.  

In the end, trustees say the model is simply not sustainable, despite the programming that the department provides to the community.

"Sooner or later 2% won't sustain itself. We will either have to exceed that cap or cut services," McGowan said.

McGowan said residents should attend board meetings to weigh in on the process.

"I want to be honest with the public and let them know we made it this year but next year, chances are there is going to be a hefty, hefty jump in taxes," he said.

"I think we need to tell the public way ahead, a year ahead, that things will be different. Maybe people need to come to our meetings and voice their opinion instead of cornering us while we're walking down the street or posting something on Facebook. I think it's also important to counter their statements...services aren’t free. No one has come to me and said 'we need to cut services.' I just want people to be aware of that in a year from now. The board could be completely different, there's two spots coming up this year. There could be two different faces up here next year," McGowan concluded.