Cheektowaga finance director warns of structural budget gap; public hearing on exceeding tax cap closes
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Summary
Finance Director Brian Krause told the Town Board the 2027 budget is structurally unbalanced, with projected contract and benefit increases creating a roughly $1.7 million gap relative to the town's estimated $1.5 million tax‑cap allowance; residents urged the board to avoid exceeding the cap.
The Town of Cheektowaga’s finance director told the Town Board on Jan. 27 that structural budget pressures make it likely the town will need to consider options that could include using fund balance or exceeding the property‑tax cap.
Brian Krause, the town’s finance director, presented six years of budget comparisons and said appropriations increased about $20.6 million (roughly 22%) from 2020 through 2026 while revenue sources did not grow at the same pace. He highlighted several drivers: payroll (the 2026 payroll budget is nearly $44 million), rising retirement rates, health‑insurance cost increases, waste‑disposal and sewer‑contract costs, and possible new debt service for infrastructure work. Krause said those pressures create an approximate $3.2 million in contract‑related spending increases and a net gap of about $1.7 million compared with a $1.5 million tax‑cap allowance under a 2% assumption.
"The budget's out of balance by $1,700,000 as it stands right now," Krause told the board.
Public reaction and board questions: Residents at the budget hearing argued over whether the town has a spending problem or a revenue problem. Several speakers urged the board to keep the tax cap in place; others, including Jessica Greenwald, said they would support raising the cap if necessary to avoid bankrupting essential services. Councilmembers asked specific questions about fund‑balance use, how increases in property assessments affect the tax rate, outstanding grants and reimbursement timelines, and the town’s bonding strategy for road and sewer projects.
Key budget details reported in the meeting record: Krause reported a projected $2.9 million use of fund balance in 2025, a multi‑year increase in appropriated fund balance of over $8 million, an approximate $6.6 million tax increase from 2020–2026 (9.5%), and increases in other revenues such as mortgage and adult‑use cannabis taxes. He said certain union contracts covering most employees will require negotiations in 2027 and that police contracts include binding arbitration. Krause warned that sustained use of reserves would reduce the town’s fiscal flexibility.
Process and next steps: The board opened then closed the public hearing after receiving about 50 emailed comments opposing exceeding the tax cap. Members said they will continue budget discussions through the winter and spring, evaluate potential operating cuts, revenue options and capital‑spending choices, and consider whether to propose a budget that exceeds the tax levy limit.
Outcome at this meeting: No final vote to exceed the tax cap was taken; the hearing was closed and the matter remains before the board for further deliberation.
