Initiatives and Actions

Budget 2025

I respect the Mayor's counter point regarding the 2025 Budget, though I want to make the distinction that the audit in the link he shared is for the 2023 fiscal year. 

Reported is an "unassigned" fund Balance of $9,728,872,  the 2024 budget appropriates  $2.73 Million+ , and the budget passed for 2025 appropriates another $2.04Million+ from the reserves to balance the budget.

All things considered (recurring revenues remaining constant and the recurring expenses continuing to increase), that could potentially reduce the unassigned balance below $5 million before budgeting for 2026.  It is fair to expect the 2026 budget to increase to $30Million.  The unassigned balance at that point would barely cover 2 months of expenses.  It cuts cash flow pretty tight.

Admittedly we have a buffer this year with the one time windfall of unapplied ARPA funds passed at the last council meeting that will be applied to the 2024 reserve fund.  There is new revenue on the horizon but none of it is guaranteed.  

My message continues to be that we should be striving to cover recurring expenses with recurring revenue...not bridging the gap gambling with the reserves.

On December 7th, 2021, the council passed a fund balance policy as an effort to ensure the reserves do not get depleted.  It can be found here in the minutes:

https://www.tonawandacity.com/December%207,%202021.doc

The past budgets passed can be found here as a point of reference:

https://www.tonawandacity.com/residents/treasurer.php

_Sean Rautenstrauch

3rd Ward Councilperson