Mayor Jimmy Giannettino says the city is confronting escalating costs and revenue pressures as it prepares for the next budget cycle, with health insurance, pensions and utilities driving much of the strain.
During a recent appearance on Inside Government, Giannettino said health insurance premiums have risen 54% over the last two years, including a 12% increase this year alone — roughly a $1.2 million jump on a $10 million policy. The city also saw an $800,000 higher-than-expected pension payment and sharp increases in equipment and energy costs, including snowplow trucks that now cost about $240,000 compared to $130,000 five years ago.
Budget pressures and revenue outlook
Giannettino said Auburn is under both a spending and hiring freeze while officials review finances quarterly, a practice he described as a recent improvement. The city may rely heavily on fund balance to close the current gap, potentially reducing reserves to about $800,000, below target levels.
Sales tax revenue is tracking as budgeted, he said, while occupancy tax receipts are expected to improve once additional quarterly payments are received. Revenue from the city’s cannabis dispensary tax is performing slightly better than anticipated.
Parking revenue has fallen short, in part due to aging kiosks that are expensive to maintain and prone to failure. The city is considering shifting more fully to app-based payments with a phone-in option for those without smartphones. Auburn is also working to collect long-outstanding parking tickets, though officials are not adding penalties or interest to encourage compliance.
Dispute over school costs
A significant policy dispute remains between the city and the Auburn Enlarged City School District over the cost of crossing guards. The city currently pays roughly $200,000 annually for 16 crossing guards and has asked the district to share in or assume that cost.
Giannettino said similar cost-sharing negotiations have occurred before, citing the phased transfer of school resource officer expenses to the district. He acknowledged recently stating in frustration that he would vote against the school budget but said it was inappropriate to express a personal voting position in that forum.
State aid and long-term stability
On the state level, Giannettino said Auburn expects an additional $1.2 million in temporary AIM funding after advocacy efforts in Albany. While he welcomed the increase, he noted AIM has not seen a permanent formula adjustment in roughly 15 to 16 years and said the city continues to push for structural reform.
Development projects and infrastructure
The mayor also highlighted several development proposals. A Syracuse-based developer is exploring a 40-unit affordable condominium project at the former RPM site on Aurelius Avenue, with units priced between $60,000 and $100,000. Meanwhile, a Rochester firm is proposing an 89-unit Residence Inn by Marriott on Grand Avenue, which would be the city’s first new hotel in more than a decade. Both projects are expected to seek sales tax exemptions, and the hotel would also request a payment-in-lieu-of-taxes agreement.
Finally, the City Council approved bonding for the long-planned replacement of the Lake Avenue bridge, a project now estimated at just under $8 million. About $4.9 million will be covered by state Bridge NY funding, with construction scheduled to begin at the end of the school year and continue through the next season.
Giannettino said the city’s focus remains on stabilizing finances, negotiating equitable cost-sharing agreements and pursuing development projects that expand Auburn’s tax base without overburdening residents.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].