Auburn faces $8.6M preliminary budget gap; council adopts CIP, awards biosolids consultant and approves several budget transfers

The Auburn City Council received a preliminary budget presentation on April 3 showing an $8.6 million shortfall for fiscal year 2025–26 and took several financial steps intended to keep city operations running while staff works toward a balanced budget.

Marybeth Leeson, who led the budget presentation, told the council the gap includes a 2% tax‑levy increase that would add about $550,000 in general‑fund revenue but that the city currently lacks available fund balance to use as a bridge. "Our preliminary budget shortfall right now is at $8,600,000 that includes a 2% tax levy increase," Leeson said. She said staff will return with a balanced budget proposal on April 24, and that departments were identifying cuts and possible new revenue streams.

Councilors and staff discussed several funds that are contributing to the shortfall:

- Solid waste: Rising tipping fees were highlighted as a major pressure. Public Works staff reported the city is currently paying $43 per ton to Seneca Meadows under its most recent extension; the contract originally started at about $29 per ton. Public Works Superintendent Tim Talbot told council the solid waste fund covers curbside garbage and recycling collection, four free landfill drop‑off days, yard‑waste pickup and limited walk‑off service for medical exceptions; those services mean the fund is likely undervalued versus true cost. Talbot said curbside collection runs roughly 9,000 tons per year.

- Power utility fund: Leeson said the general fund currently subsidizes other municipal funds and that the power utility fund’s support has amounted to roughly $2.2 million in past years. Staff said the power utility fund has stabilized but must be managed to allow for payback and future capital needs.

- Water and sewer: A recent rate study recommended 2% annual increases; staff asked water/sewer managers to first seek 2% expense reductions rather than raising resident rates, to ease household impacts.

Biosolids and tax credits: The council awarded a consulting contract to Baker Tilly Advisory Group, LP, for professional services related to the Auburn biosolids and wastewater treatment plant improvement project at 35 Bridal Street. The resolution authorizes Baker Tilly for phases 1–4 for an amount not to exceed $125,000, with initial phases to be charged to the Sewer Operating Fund. The contract award was accompanied by questions from council about whether federal tax incentives on which projected returns depend will remain available.

Council discussion noted the biosolids project could generate substantial savings. A staff presenter said the $125,000 consulting expense could be justified by potential returns in the range of "a million to $11,000,000" if relevant tax credits apply, but several councilors pressed for safeguards. In response, a staff member involved in scoring the proposals said the contract will include protections so the city will not be committed to paying $125,000 if the tax credits or other financing mechanisms disappear: "we're putting safeguards into this agreement to ensure we're not going to spend $125,000 and not get anything out of it."

Capital plan and other transfers: The council adopted the fiscal year 2025–2029 Capital Improvement Plan under a resolution referencing New York General Municipal Law Article 5, Section 99‑gs. Staff also presented a financial resolution closing a set of completed capital projects and authorized transfers for operating and capital budget adjustments for fiscal 2024–25, including funding for replacement vests for school resource officers and a line item addressing tipping‑fee shortfalls.

Department budgets and services: Presentations from Public Works, Engineering, and Planning/Code Enforcement provided department‑level context for the budget pressures. Public Works described 39 general‑fund positions (36 full time, 3 part time) and said refuse collection employs 20 people (17 full time, 3 part time). The public works presentation listed details including rising chlorine costs for pools (near $4.50 per gallon) and the role of the city’s municipal utilities and parks in everyday expenditures.

Next steps and staff direction: Staff said they will present a balanced budget proposal on April 24 that will include options to close the gap. Staff and council discussed possible rate increases for solid waste and other funds and a plan to roll some capital costs into long‑term debt; the finance office said it is working with fiscal advisers on a strategy to manage borrowing and limit short‑term borrowing costs.

Votes at a glance

- Land sale — Resolution 36 (sale of 68 Francis Street to Michelle Aziz for $40,000): approved. Motion sponsor: Councilor Cuddy; second: Councilor Clerko. Roll call: Councilor Kent — Yes; Councilor Overstreet Wilson — Yes; Councilor Cuddy — Yes; Councilor Clarko — Aye; Mayor Genentino — Aye.

- Financial resolution 37 (closing identified capital projects): approved. Motion sponsor: Councilor Kent; second: Councilor Overstreet Wilson. (Roll call recorded as carried.)

- Award resolution 38 (award contract to Baker Tilly Advisory Group, LP, for biosolids project consulting, amount not to exceed $125,000): approved. Motion sponsor: listed as Councilor Caugheysek; second: Councilor Kent. (Vote recorded as approved in meeting record.)

- Council resolution 39 (adopt FY2025–2029 Capital Improvement Plan under New York General Municipal Law Article 5, Section 99‑gs): approved. Motion sponsor: Councilor Clerko; second: Councilor Kent. Roll call: all voting members present recorded as Aye/Yes.

- Financial resolution 40 (authorizing various operating and capital budget transfers for FY2024–25, including fund‑balance use and line items such as vests for SRO/SPO): approved. Motion sponsor: Councilor Overstreet Wilson; second: Councilor Clerko. Roll call: recorded as carried.

Details recorded in the meeting transcript show discussion points and some roll‑call votes for the items above; where the transcript did not include a full named roll call for a specific resolution, the meeting record indicated the resolution was approved but did not specify each member’s recorded vote within the provided excerpt.

Why this matters: The preliminary $8.6 million shortfall will require a mix of spending cuts, rate changes, and borrowing decisions that could affect municipal services — including solid waste collection, parks and pools, and utilities. The biosolids project and the Baker Tilly contract are intended to reduce future tipping fees, but councilors insisted on contractual safeguards because projected financial benefits depend on federal clean‑energy tax credits that could change.

What the council directed: Staff will return April 24 with a balanced budget recommendation and options to close the gap; staff also will continue procurement steps for the biosolids project with contractual safeguards and continue work on rate and debt strategies to stabilize affected funds.