MASSENA -- The Massena Town Board has approved the preliminary budget for Fiscal Year 2025 but Town Supervisor Sue Bellor said the budget is far from settled.

Town board members adopted the budget during the Oct. 16 board meeting.

Bellor previously said town of Massena department heads would have to sharpen their pencils and give a hard look at their budgets if the town is to remain under the 2% tax cap.

Town officials passed a resolution last month that allows them to override the cap if it is deemed necessary.

Bellor previously said it is very likely the town will have to exceed that cap despite a "fiscally tight spending plan" to meet the various commitments to town residents.

One monkey wrench the town must now face is a commitment to pay off the town's trailing liabilities from the sale of Massena Memorial Hospital to St. Lawrence Health.

Despite the town paying off a $1.7 million worker's compensation debt to the county, over $5 million remained from the sale of the hospital in January 2020 in the form of a New York State pension liability.

The town signed off on an agreement with the state to pay back

around $5 million beginning in 2025 with an interest rate of 7%.

That means the town will pay $383,214.24 every year for 30 years.

Town officials said during the Sept. 19 board meeting that the funds will have to come from taxpayers unless action is taken in Albany to assist.

In January of this year, town officials passed and signed the "home rule for state legislation," which they said would give the town expanded bonding authority to cover up to $5 million of the pension liability.

Despite the town's best efforts, it appears a lack of action in Albany is going to end up costing taxpayers hundreds of thousands of dollars each year to settle the trailing liabilities from the hospital sale.

Bellor said those efforts are putting the town in a financial crunch.

“We tried for two years with the Senate and Assembly to try to get a resolution so that we could pay our hospital pension debt back at a better rate, and it has not passed both houses two years in a row. So, therefore, next year we need to start paying back the hospital pension debt each month,” she said.

She said the plan is for 30 years barring "some kind of miracle that comes across to help us out."

Expenses also continue to rise, while sales tax revenue has proven to be volatile in recent months as consumers are forced to cut back due to price gouging for basic goods.

Bellor said she has met with several groups in recent months to discuss budgetary needs.

needs.

“With the need for transparency and clarification for all town board members ahead of planned budget sessions, and following the advice of the Association of Towns legal staff, I had dialogues with board members, department heads, bookkeeper, and town clerk to coordinate budget review and calendar planning sessions," she previously said.

That review allowed town board members to ask questions and make adjustments to their tentative spending plans, Bellor said.

Bookkeeper Brena Mossow has since finished processing department proposals and other funding requests to calculate expected revenues and year-to-date expenses.

The budget also shows a zero fund balance due to the trailing liabilities of the hospital sale, Bellor said.

It's not just the hospital debt that is weighing down the town.

Bellor said an increase in health insurance expenses for employees and retirees alike will also impact the budget.

Rising costs such as fuel, gasoline, equipment and repair costs are also impacting the budget as well.

Bellor said it is essential the town be proactive in "discussing, strategizing and developing a cooperative plan" with the St. Lawrence County Chamber of Commerce, St. Lawrence Industrial Development Agency, New York Power Authority, Air Products Hydrogen Facility and "other local industry leaders for continued and potential marketing."

She also highlighted a need to promote tourism and recreation in the town.

“With the support of fishing promoter Don Meissner and grant writer Linda McQuinn, we can capitalize on their work with our Explore Massena branding webmaster, Jason Hendricks. We also need to continue with the grant writing by established engineering firms for the airport, highway, water districts, and infrastructure,” she said.

Town officials will next hold a public hearing on Nov. 6 at 3 p.m. to accept the preliminary budget for Fiscal year 2025. The public are encouraged to attend the hearing, which will be held in Room 30 at the Massena Town Hall, 60 Main Street.