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Cliff Newton of Rochester (Courtesy photo)
It is often said you can't tell where you are going if you don't know where you've been.
Rochester has a tax and spending cap that 9,755 or 71 percent of the voters passed in 2008. The people said reasonable increases are OK. The tax cap allows for an increase in government spending based on the rate of inflation.
Anything above that requires a council supermajority vote. This includes most funding sourced from the "unassigned fund balance," which I call the 'cookie jar."
The citizens of Rochester realize it costs money to operate government. The tax and spending cap allows for 'reasonable' increases to do that. This worked well for years until super inflation set in and the city found a way to spend around the cap.
Rochester currently has an Unassigned Fund Balance Fund with a suggested limit by city ordinance of 7-18 percent of the city budget, Simplified for this op-ed we will use a million dollars per percent. So, approximately 7 at the lowest to 18 million dollars at the highest is what should be in there. That fund is supposed to be primarily for emergencies. We currently have more than $29 million in this 'cookie jar' fund.
This year alone - MORE THAN 50 TIMES - the city council has approved spending over and above the tax cap budget and was it all emergency spending? In fact, the city couldn't wait to start moving money around, and did so a couple of weeks after the budget was adopted last June. On July 6 council agenda Example: moving $844,000 from school capital reserve fund to the FY22 revenue account and Public Works getting an additional $200,000. Why wasn't it in the budget passed a couple of weeks prior? They didn't know about this at budget adoption? Did this emergency spending pop up out of nowhere? Are we not paying enough for good help? Hmm.
Where did I get my information? I looked at all the council agendas for this fiscal year until now and added up every supplemental appropriation request listed. I was shocked with what I found. 50 times or more the city asked for additional spending over and above the adopted budget. One department, Public Works has asked for $8.5 million in additional spending since the budget was passed. This is not including, a couple years back, counting the $4 million more they came for after determining the original request for 18 million wasn't enough for their new garage.
I suspect that these city budget shenanigans are, by design, being used to overspend the tax and spending cap budget. I also believe it's happening across the state. I hope that I am wrong but why else did our legislature pass a law (SB52) in 2021 with the analysis stating: This bill requires city charter exclusions and ordinances that have the effect of an override of a tax cap, to require a supermajority vote.
This new law is a tool for accountability ladies and gentlemen USE IT!
In closing, The Unassigned Fund Balance contains millions over what the city ordinance allows. I believe it's because every nickel the finance department can free up goes into the "cookie jar." Then, by skirting the tax and spending cap and being "labeled Unassigned," the 'cookie' jar fund becomes a free for all for city department spending and growth that our city has not seen since the '80s. The citizens have been very
generous to our fine city and its employees. During Covid they have not suffered the financial hardships we, in the private sector, have had to endure. The 'cookie jar' could help the citizens get tax relief, but, just the opposite is being proposed, more government spending for more government growth. On top of it all, despite all the money in the 'cookie jar," next years budget proposes a TAX INCREASE in our property tax bill.
generous to our fine city and its employees. During Covid they have not suffered the financial hardships we, in the private sector, have had to endure. The 'cookie jar' could help the citizens get tax relief, but, just the opposite is being proposed, more government spending for more government growth. On top of it all, despite all the money in the 'cookie jar," next years budget proposes a TAX INCREASE in our property tax bill.Here's what you can do to help. Call your city councilor and ask them why we have spent so much more than the budget appropriated? Ask them why they are about to vote to spend $3.6 million more than the budget appropriated in just a few short days, Ask them why, with so much of our money in the "cookie jar" - $29 million,- are our taxes increasing at all? Why is property tax relief the last thing to be discussed and not the first. It's up to you, citizens of Rochester, what the next step will be. Let your voices be heard!
Cliff Newton is a lifelong resident of Rochester and is serving his 4th term as a State Representative for the citizens of Rochester.
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