Money lessens pain of "disaster budget"

ALBANY, N.Y. (WIVB) - The New York Power Authority has voted to accelerate payments of $13.5 million to the city of Niagara Falls. The allocation represents 14 years of payments due to the city under the 2007 Relicensing Agreement. It falls under the category of the Host Communities Development Fund.

Mayor Paul Dyster tells News 4 Senior Correspondent "We would have the ability to spin it back down again...repay NYPA...when we are paid our casino revenues. " The Seneca Nation suspended casino payments to Niagara Falls and other local governments after the state allowed gaming at Batavia, Hamburg, and Finger Lakes race tracks. The issue is now in arbitration.

Mayor Dyster tells Newberg that money will be used to lessen the pain of an $83 million "disaster budget" he proposed on November 1st. The Power Authority money could possibly offset an 8.3 percent property tax increase for homeowners and a five percent increase for commercial property.

In addition, it might help prevent the potential layoff of 20 city workers.

State Senator George Maziarz tells Rich the "state stepped up to the plate, bailed the city out in fiscally hard times." Maziarz chairs the state's energy committee. NYPA falls under the jurisdiction of that committee. "I worked very closely with the governor's office to get this done," said Maziarz. Talks had been going on for a month.

Maziarz said the city of Niagara Falls will "have to prove some fiscal discipline" after receiving the NYPA funds.

Talks with the governor's office had considered a spin up of state aid, but Maziarz said: "One of the concerns of the Division of the Budget was, what happens if Utica is in trouble, or Yonkers is in trouble, or Syracuse...they don't want the same thing. With the hurricane...there's not a whole lot of money to go around with the state's general fund. Niagara Falls has a unique agreement with the Power Authority where they get this money over a 44 year period. It made more sense to go that route."