DUNKIRK, N.Y. — The City of Dunkirk’s ongoing financial struggles are continuing to play out as city leaders work to finalize the 2025 budget.
Dunkirk Mayor Kate Wdowiasz presented the budget at City Hall on Wednesday night, and it came with a significant property tax hike for residents.
The proposal calls for a tax rate of $37.75 per $1,000 of assessed property — more than double the rate of $18.12 per $1,000 assessed on 2024 budget. The 2024 budget came with a small hike after years of no increases.
Wdowiasz, who took office in January, is coping with a $16 million deficit in the city’s $26 million budget. The deficit stems from past City Hall issues, aging, declining population, and the loss of $3 million each year from its largest taxpayer, which was NRG Energy, after the 2016 state-mandated shutdown of the firm’s coal burning power plant.
The mayor says the financial issues have been building for over a decade.
"It's been at least 12 years of not addressing an issue that could potentially have blown up, which has blown up,” she told 2 On Your Side earlier this month.
The state is providing assistance through the state budget with the Dunkirk Fiscal Recovery Act, but it requires that the state comptroller review the city’s budgets, meaning that 2025 budget needed to be balanced.
Instead of cutting services, Wdowiasz felt the best option was larger tax hikes to keep those city services intact.
“As we discuss our budget, we must face a significant reality: we are facing a tax increase,” Wdowiasz said. “Let us remember it is necessary to revitalize our future and ensure our beloved Dunkirk prosperity. Together, we can continue to strive for a community that is not only resilient but thriving.”
As the mayor and city leadership continue to dig out of this massive hole, the 12,000-plus residents of Dunkirk will feel the effects in their pockets.
The budget proposal still must be approved by the common council.