Message from the Mayor – Harry J. Tutunjian

For more than three years we have worked diligently to stabilize rising costs in three areas: retirement, health care, and energy.

We have been successful to a point. After five years of dramatic increases, including more than $6 million in health care, and more than $4.5 million in retirement, those costs will stabilize in 2008. Thanks to more efficient contracts with our unions, a willingness to make the tough, but correct decisions, and a focus on consolidating services when able, the fiscal security of Troy is sound.

While our utility and gas costs are expected to increase by approximately ten percent next year, we hope to offset that cost by moving into a more efficient municipal building during 2008.

Nearly all of the unions in the City of Troy have newly approved contracts that set in stone spending for the next four years. These employees will be rewarded for their performances with yearly raises, and should be commended for their willingness to work with the City of Troy to help ensure that our health care costs do not continue to skyrocket for the next five years.

As I have stated many times before, the positive report that increased costs are leveling off comes with a plea. The City of Troy must continue the conservative trends we have practiced since 2004. Failure to do so would only lead to the dramatic tax increases that have so often devastated taxpayers in the past.

The New York State Comptroller continues to employ the City of Troy as a model for conservative budgeting through the Empire State, so much so that Governor Eliot Spitzer has rewarded us for our fiscal integrity with increases in State funding. This money is specifically sent to municipalities in an effort to reduce the tax burden on its residents, and we will make sure that it is used for that purpose.

For the fourth consecutive year, we asked each department head to look at their department carefully, and make the decisions that are necessary to ensure the City runs smoothly. We have made it a point to only add positions to the City that are essential. To that end, two positions will be added this year. Both are union jobs, one a clerical position, the other a heavy equipment operator in the Department of Public Works.

Through careful planning for 2008, I am pleased to announce that this budget proposes zero tax increase, zero water rate increase, and zero sewer increase. There are no fee increases to speak of either. It is a budget prepared with the resident in mind.

Earlier this summer we began extensive capital improvements through the entire City. In 2008, we will have a capital budget that includes more than $1.2 million in funding for capital projects for the City of Troy.

We have stabilized our spending through hard work. Now we must do what all municipalities strive for, and increase our tax base.

During last year’s budget presentation, I mentioned that the effort of the previous three years would come to fruition and provide tangible relief for the residents of Troy. That is indeed the case. If we can continue to work together to bring in new tax revenue, jobs, and development, our fiscal future is bright. Whether it is the relocation of City, hotel projects on Hoosick Street, riverfront development by First Columbia, or the Congress-Ferry Street reconstruction, we are progressing as we speak.

By focusing on the renewed interest in Troy, announcements of no tax increases should become a staple in Troy, and not a welcome sign of relief. But we must work together to make that happen, and not let this opportunity pass us by.

This proposed budget was completed with the notion that the Troy residents have enough of a burden on them. This is a strong spending plan based in numbers, and numbers alone. It will allow us to achieve the continued support of state leaders. It is a budget that will be balanced, and will keep the City of Troy on a course for success in years to come. Your support in our continued revitalization is crucial, and we look forward to working together with you.

Harry J. Tutunjian
Mayor of Troy