MESSAGE FROM THE MAYOR

America is in the throes of a double dip recession that has mired the entire country in a financial stall. The current economic environment around the country has manifested itself here in Troy. Again this year while attempting to balance its own budget, New York State cut aid to municipalities, reflecting both the irresponsible culture of spending the state has long engaged in, the mismanagement of the state’s pension funds, and the continued rise in health care and retirement costs combined with stagnated revenues.

To this point, Troy has been able to weather parts of this storm. Once more, local residents are being asked to bear the responsibility of fiscal mismanagement at the state level, and it has become our job annually to find creative and responsible ways to minimize the effects on the taxpayer while delivering quality basic services.

My administration has fostered successful economic development projects such as the Congress-Ferry Street redevelopment project, the first phase of which is almost complete. When the project is fully realized, there will be 400 units of high-quality housing and other retail and commercial space that will bring new residents to downtown and generate property and sales tax revenues. We are close to finishing the planning phases for the redevelopment of Monument Square and Riverfront Park, both of which are keystone projects in attracting more economic development projects and investment. The grand opening of Dinosaur Bar-B-Que promises to bring people to Troy to eat and shop. Furthermore, the redevelopment of the Proctor’s and Chasan buildings, the construction of a new office building across from the Hilton Garden Inn on Hoosick Street, and more, demonstrate that Troy is still a place for economic development and investment despite the national recession.

Eighty-five percent of the budget is slated for debt service, salaries, and benefits. Half of the budget is dedicated to police and fire services. The city is facing rising costs in health care and pension expenses combined with decreasing revenues. Those include:

• 41 percent increase in the combined civilian and police and fire pension bills
• 7.3 percent increase in health care costs
• A decline of $175,000 in gross receipts tax
• A decline of $350,000 in earnings and investments
• A decline of $275,000 in Mortgage Tax Distribution
• A reduction of $258,000 in state Aid to Municipalities

I have made it a point in my budget proposals to offer a tax increase only when absolutely necessary. In total state mandates, contractual obligations, and decline in revenues have the city facing a $2.2 million budget deficit for the upcoming year. We are able to propose a 5.5 percent increase in taxes for the proposed 2011 city budget.

I am also pleased to report that for the fourth straight year, we are proposing no new increases in our water and sewer rates.

This budget proposal was achieved through a number of different avenues, including:

• All city department heads were required to work with the Deputy Mayor and the acting Comptroller to cut anything that is not absolutely necessary.
• This budget plan continues to allocate a large portion of Community Development Block Grant (CDBG) funding to the General Fund for the purpose of reimbursing salary operating costs for Code Enforcement, which the City Council supported in the past.
• Not funding currently vacant positions saving upwards of $412,000
• Amortize a portion of the pension bill increases.

Thanks to our fiscally conservative approach and responsible budgeting, my administration has managed to avoid the disastrous budgets other municipalities have been forced to enact. It is my intention to continue our responsible decision making.

Let me be clear: any further reductions in the city’s proposed budget must come from layoffs which will have a severe impact on the city’s quality of life.

I am asking you to put aside the usual politics of budget season to work with me in adopting a budget that is both honest with taxpayers but maintains the city’s quality of life.

My office is always open to you and all members of the City Council to discuss this budget.

We must demonstrate that we are capable of rolling up our sleeves and working together to find the best course of action that continues providing Troy’s taxpayers with the best quality basic services. That means enacting a budget we can confidently present to Troy’s taxpayers as the best, most responsible solution in the worst economic climate we’ve seen in a century.