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While Gov. George Pataki has reportedly encouraged Mayor Irene Elia to raise property taxes here by a whopping 27 percent, he publicly chastised the Nassau County Legislature for its proposal to hike taxes there by 16.3 percent.
The difference? In Nassau County, on Long Island, the legislature is controlled by Democrats and many of the property owners are wealthy Republicans. In Niagara Falls, the mayor is a wealthy Republican and many of the property owners are Democrats living at or below the poverty level.
"I think a massive property tax increase is clearly the wrong way to go," Pataki said of the Nassau County proposal. "I certainly would be personally opposed to any significant property tax increase."
While the Nassau County increase reportedly would raise the average homeowner's bill about $165 a year in one of the wealthiest counties in the nation, Elia's proposal would raise the average bill in excess of $200 annually in one of America's most economically distressed cities. Pataki's comments were quoted in an Oct. 18 article in the New York Times. Last week, he was reportedly out of state, stumping in support of Texas Gov. George Bush's presidential bid, and unavailable for comment despite repeated attempts to reach him.
Elia has stated on numerous occasions that her historically unprecedented tax hike was cleared with Pataki beforehand, and hinted it may be the key to receiving additional funding from the state in the future.
If she's not telling the truth, it wouldn't be the first time. As recently as Aug. 7, Elia vowed not to raise taxes and, during her election campaign, she promised to attend all city council meetings.
Within the past month she's skipped two of those meetings, and many believe it was because she was afraid to face the hundreds of irate Niagara Falls businesspeople and homeowners who did attend.
Of the dozens who spoke at the two meetings, only one, City Administrator Al Joseph's daughter-in-law, spoke in favor of the increase. She was booed down by the angry crowd.
In a television interview following the Oct. 24 public hearing on her tax increase, Elia stated, "I've faced worse firing squads before." Aside from the fact that she wasn't there and hadn't faced anyone, some took exception to the fact that she referred to her constituents as a "firing squad."
"I voted for her," said LaSalle resident Claire DellaValle. "She really had us snowballed." Her absence from the meetings angered others.
"She's a coward," said Fifth Street homeowner Clifford Thorn. "She doesn't even have the courage of her convictions."
Niagara Falls businessmen also were outraged.
"Right now, you have 35 empty stores on Pine Avenue from Hyde Park to 16th Street," said Danny Cipollitti, owner of Dante's Ristorante and a former supporter of the mayor. "All you have to do is put up the plywood and it would look just like Main Street."
Chamber of Commerce President Chuck Steiner joined the list of those characterizing Elia's proposal as disastrous. Steiner said the tax hike would cost the city business and jobs, especially in light of expected increases in water and sewer rates, a county tax increase and a possible increase in school taxes this year.
"The problem of out-of-control expenses has been identified," Steiner said. "We do not challenge these facts. What we do challenge, however, is the fact that no substantive changes are being offered in this budget to address these expense challenges, other than a significant increase in property taxes to gain more revenue."
Elia was the guest of honor at the Chamber's annual awards banquet this year, but last week Steiner offered her some hard advice. Reductions in personnel and benefits, a hiring freeze, consolidation of services between the city police and the county Sheriff's Department and a sharing of services with the Niagara Falls School District were just some of his suggestions. City Council members Charles Walker, Joe D'Angelo, Barbara Geracitano and John Accardo have called the tax hike unacceptable. Council Chairman Anthony Quaranto said he would work to reduce the increase.
"We know people are angry -- they have a right to be angry," he said. "Our job starts now." Geracitano questioned the need for at least eight uniformed and an undetermined number of plainclothes police officers at the public hearing. All were being paid overtime, she said.
"I guess the mayor was expecting a riot," she said. "For all the money she wasted on overtime, she could have just bought us bulletproof vests."
In the days following the hearing, a uniformed police officer has been on duty in the lobby at City Hall during regular business hours.
Despite the widespread outrage, Elia continues to maintain that everyone she talks to tells her the massive tax increase is a good thing. The $117 million spending package is "the most honest budget ever presented in the history of the city," she said. Furthermore, she has called for city residents to "all hold hands" and accept her decision.
"I'm here every day, talking to people in City Hall," she said. "Most of them have been very supportive."
Last week, Elia said she would ignore the pleas of council, the Chamber and numerous citizens who called for a hiring freeze until the budget mess is sorted out. Additionally, the mayor stated she's not interested in sharing services with the school district, a move that could save more than $1 million annually.
A federal report issued last month showed that more than 40 percent of city residents live at or below the poverty level and unemployment stands at 9.4 percent. The region was listed as being in the bottom 10 percent of the nation's 100 largest metropolitan areas in terms of household income, unemployment and the number of people living on some sort of public assistance.