Property taxes in the city of Buffalo are set to rise if Acting Mayor Chris Scanlon's proposed budget gets approved by the Buffalo Common Council.
The recommended budget, released Tuesday, outlines a property tax rate increase of 8% for both commercial and residential properties starting July 1.
Scanlon said the proposed tax hike is necessary to help fill a projected budget deficit of $70 million for the 2025 to 2026 fiscal year.
“This increase will generate approximately $13.7 million for the upcoming year alone," Scanlon said. "I know when people hear 8% they become uneasy with it but just for practical application -- on a home that’s assessed at $150,000, next year that will be an $11 a month increase.”
The administration has also proposed a 3% hotel occupancy tax, which Scanlon estimates will generate around $3.5 million annually, as well as the sale of four city-owned parking ramps to bump a further $40 to $60 million in revenue. Both proposals need state approval if they are to go ahead, but Scanlon feels "confident" he will get it.
Besides revenue propositions, the acting mayor said departmental cuts to the tune of $10 million, teamed with $16.5 million saved through implementing a "soft" hiring freeze, will also help address the projected deficit.
“If you couple those two things with several other smaller cost cutting and saving measures, we ended up in the range around $30 million in direct cuts or savings throughout the different departments," he said.
So far those savings have been made without cuts to services "or a single layoff," according to Scanlon.
The proposed budget is now in the hands of the Buffalo Common Council which has the power to suggest amendments to the administration's plans between now and May 26.
Acting Council President, Bryan Bollman, said his fellow councilmembers will start digging into the numbers right away.
“My colleagues and I are ready to get to work. I know that. And you know, for me, I really want to look at, you know the burden we're placing on residents versus tightening our own belt and making cuts.”
Scanlon's predecessor, Byron Brown, did not increase property taxes during the majority of his 18 years as mayor. Scanlon inherited a $17 million deficit for the current fiscal year which was balanced in part using federal American Rescue Plan funds - a one-time cash injection designed to help municipalities recover from the economic impacts of the Covid-19 pandemic.
A public hearing on the proposed budget is scheduled for April 29 at 5 p.m. in the common council chambers. The deadline for the council to approve the budget is June 8.
