I would like to thank the thousands of residents who signed my Video Lottery Terminal (VLT) funds petition last fall and helped me in the campaign to bring back this sorely needed revenue source.  Your overwhelming response sent a clear message to our state leaders in Albany.   Second, I would like to thank all those residents who took the time to provide input and to my fellow council members for their assistance in refining my plan on what to do with those funds now that we are receiving them again.

I have proposed a plan for the use of VLT funds and the council has taken steps to put this plan in place.  I’d like to take this opportunity to outline the plan and explain why certain decisions were made.  As you may or may not know, the VLT legislation has certain restrictions on how these funds can be used, so my plan had to take those into consideration. 

The VLT legislation dictated that funds could be used to either defray local costs associated with a video lottery gaming facility or to help offset the tax burden to local taxpayers.  Coming out of one of the worst economic recessions ever, reducing taxes and positioning the city for long term stability were my priorities.   Since the VLT legislation was not passed until long after we had set our tax rate for 2011, we could not lower the property tax rate for this year.  Therefore, I asked fellow council members to identify priority items that had been deferred to the 2012 budget that we could use now, thereby reducing next year’s tax burden.  We are allocating $451,000 for items that fall into this category including paving near the Casino & Raceway.

Given the unpredictable nature of the receipt of revenues, especially the VLT funds, we needed to take steps to reduce the tax burden for the future.

The solution was the creation of a “Contingency and Tax Stabilization Reserve Fund”. The purpose of this fund is to help keep taxes below 2.5% and to be used when there is an unanticipated loss of revenue (i.e. when budgeted VLT funds do not arrive or an unanticipated expense is realized). 

Initially the Council is allocating $1,000,000 to this Reserve Fund and it is my hope to increase it the next couple of years. This way, future councils may safely pass a budget in the fall knowing that if unexpected shortfalls arise, the city isn’t left in the lurch.  As this fund builds, it will create a safety net for unpredictable economic downturns.

I am cautiously optimistic that we have turned the corner and are on the path toward my vision of a fiscally sound Saratoga.  I pledge to continue fiscal responsibility and the fight for reduced government and lower taxes.

I once again ask for your support, so I can insure that the ground work we have worked so hard for will not go to waste but provide stability to our fiscal future.