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State of the Village

Gowanda has deeper reserves, lowest expenses in four years

OBSERVER Photo by Andrew David Kuczkowski Pictured is the Finance Committee for the village of Gowanda. From left is: Finance Advisor Andy Burr, Trustee Carol Sheibley, Treasurer Traci Hopkins and Mayor David Smith. Missing is Department of Public Works Director Jason Opferbeck.

GOWANDA — The 2018 State of the Village of Gowanda presented a tax increase for next year’s budget, which has the lowest budget expenses, $3.1 million, and a gain in property tax revenue, $1.06 million, for the first time in a four-year span.

For Gowanda residents located in Cattaraugus County, taxes will go up 1.71 percent and be at $16.48 per $1,000 of assessed value. For village residents in Erie County, taxes will go up 1.88 percent and be at $16.48 per $1,000.

The State of the Village, presented by Mayor David Smith, stated the fiscal changes, accomplishments and gratitude toward the “first class” staff around him.

GOOD FUDICIARIES WITH RISING COSTS

The village of Gowanda’s 2018-19 budget will have a decrease in spending of $219,572 or 7 percent. That is coupled with many difficulties that the municipality and many others had to face in the area. Despite this, the raise in taxes of 1.71-1.88 percent will also allow deeper reserves, happy employees and more.

“When the calendar flips on June 1,” Mayor Smith said, “we will incur a 13 percent increase in insurance costs, our employees will get raises, we have an increased contribution to the employee’s retirement system and the cost of doing everything goes up: utilities, putting fuel in your vehicles. Nothing ever goes down. So, even with those increase in costs, we are spending $219,572 less.”

The improvement to reserves and the funds helped Gowanda get removed from the Fiscal Stress List by the state. In 2015, Gowanda was rated at 60.8, moderate stress; 2016 was 55.8, moderate; and on March 20, 2018, it was said that the village dropped to 19.2, which has no fiscal designation for stress.

The positive, Smith noted, will relate to a great credit rating. The mayor believes it will open up more borrowing options and give collateral for the economic world.

“This is a result of increased expense management and monitoring through the purchasing and procurement policy that Deputy Mayor (Carol) Sheibley spearheaded,” Smith said. “It also puts us in a position where we are anticipating a substantial fund balance in our operating budget in the completion of this year.”

The village anticipates having $300,000 to $350,000 in the reserves at the end of the budget year. The village board stated the reserve increase is necessary and that there are only two options to accomplish this: reduce spending or increase taxes. Smith said 2018-19’s budget accomplished this by a mixture of both.

“Building reserves in a small community is very difficult and it is a challenge, but you have to because right now we have some good times for us,” he said. “Just like in your own home, when times are good, it would be smart to put some of that money away.”

2017, A YEAR OF ACCOMPLISHMENTS

From a $6.7 million flood mitigation channel of Thatcher Brook to the village receiving $2.5 million for a finished Hollywood Theater and improved water access, Gowanda can look back at 2017 as a resounding success.

The flood mitigation plan is no burden to taxpayers. The local share is coming from Sen. Cathy Young, $1 million, and Sen. Patrick Gallivan, $200,000, while the state and federal government will supply the rest. Smith stressed that Cattaraugus Creek does not flood, and that Thatcher Brook is the enemy for the village. The project also has a ratio of 1.44, which anything over 1 is acceptable for the Federal Army Corps of Engineers.

“Perhaps the biggest thing, and most important thing, for our village … flood mitigation becomes a reality for village residents,” Smith said. “Although, I have only lived in the village for, coming up on, three years, I have been an administrator here for 15 and I recall the days when the children were shivering inside the school after the 2009 flood. I don’t ever want to feel that again. We feel it here every time the water comes up.”

The mayor previously stated that property values may go up 23 to 27 percent and the need for flood insurance will be no more.

Mayor Smith added during the meeting that his first year was a combination of past mayor’s and current board’s activity. He complemented previous Mayor Heather McKeever and, farther back, Richard Klancer, who made areas in Gowanda waterfront locations.

Along with that, the village began its sewer capital project of $3.3 million, which was approved last year. Gowanda also received the Brownfield Opportunity Area Phase 2 funding.

“WE” NOT “I”

Mayor Smith began and ended the meeting with one sentiment: us. It was never “my administration” nor “we.” In every topic, Smith brought up the leaders of the accomplishment, even though it may not have been him. Flood mitigation was by Village Trustee Paul Zimmermann; Sheibley led the purchasing and procurement plan and was active in the financial committee.

Smith noted the importance of the new clerk, Danielle Wagner, and Village Treasurer Traci Hopkins. This wasn’t the end of the list, and Smith was heavy hearted when he emphasized the impact they’ve made on his first year.

“I have to say that serving the village of Gowanda has been a blessing for me,” Smith said. “Working with this team has been a blessing. I didn’t know if I would like it or not. To be honest with you, I said, ‘Well, I will try it for two years and if it’s a disaster, I will just let somebody else do it.’ I feel so loved here to work with all of you and to work in this village with top-notch people that help me in every way and every day.”

Twitter: @ByKuczkowski

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