The Watertown City Council unanimously approved a local law on May 18 to override New York's two-percent tax levy cap, paving the way for a budget increase necessary to cover rising payroll costs and declining revenue. City Manager Mills told the council the city currently relies on $1.9 million in fund balance to cover the proposed budget and warned that at current spending trajectories, the city's roughly $17 million fund balance could be depleted in just over two years. The primary challenges are declining hydroelectric facility proceeds, which are down approximately $1 million year-to-date, and salary and benefit increases that consume roughly three-quarters of each year's budget growth. Councilmember Shoen supported the override on condition that savings go toward replenishing reserves rather than lowering tax rates.
In separate action, the council unanimously reversed a prior requirement that residents place all trash in rigid containers, allowing bagged refuse with city stickers to be accepted curbside again. Councilmember Garrabrant noted the city has lost refuse customers to private haulers, citing a projected $126,000 decrease in sticker fee revenue. He proposed the Clean Watertown Initiative, a five-year plan to recruit approximately eighty new customers annually through efforts including discounts for returning customers, free stickers for new residents, and a subscription sticker-by-mail program.
During public comment, Suzanne Renzi Falge urged the council to maintain library staffing levels, saying only three staff members cover the entire building on many nights and weekends. Resident John Phelps criticized the city bus pilot program and the proposed trash sticker price increase from five to five dollars and twenty-five cents.