Gates Town Council reviews 2024 property tax cap amid uncertain sales tax forecasts

The Gates Chili Central School District is proposing a property tax increase of 2.24% for the 2025 budget, staying below the state-mandated cap of 2.42%. This decision comes amid a complex financial landscape, where property taxes make up 46% of the district's revenue. The tax cap, established in 2011, is calculated using a formula that considers the Consumer Price Index (CPIU) and other factors, ensuring that any increase requires a supermajority public vote if it exceeds the cap.

During the public budget hearing on May 3, officials highlighted the anticipated decrease in local sales tax revenue due to economic uncertainties, including consumer fears related to market conditions and tariff legislation. This has prompted the district to cautiously estimate its sales tax revenue for the upcoming year, aiming to avoid mid-year staffing cuts or program reductions.

State funding, which constitutes 45% of the district's revenue, is projected to be around $62.6 million, reflecting a change in formula aid. The district is also working to reduce its reliance on reserve funds, targeting a usage rate of about 4%.

As the budget proposal moves forward, the district is preparing for potential changes in property assessments, which could affect the estimated tax rate. With the town of Gates currently reassessing properties, officials expect an increase in assessments, which may lead to a drop in the tax rate despite the proposed increase in the levy.

The budget discussions underscore the district's commitment to maintaining financial stability while navigating the challenges posed by fluctuating revenues and economic conditions.