FOR IMMEDIATE RELEASE | NOVEMBER 3, 2016
Mayor Madden Statement on Office of State Comptroller’s Review of the City of Troy’s Proposed 2017 Budget
TROY, NY – Mayor Patrick Madden today issued the following statement regarding the Office of the State Comptroller’s report and review of the City’s proposed 2017 budget:
“The independent review of Troy’s proposed budget issued today by the Office of the State Comptroller reaffirms my administration’s commitment to correcting the mistakes of the past and efforts to implement a fact-based budget for our community moving forward. We have taken seriously the concerns outlined by OSC as detailed in their February audit which are reflected in this review. I express my appreciation to Comptroller DiNapoli’s office for their assistance throughout this year and to our own City Comptroller’s office for their tireless efforts to address and correct the financial issues which have negatively impacted our city. I remain committed to working together with the Council and our residents to restore Troy’s financial standing and tackle the tough decisions ahead.”
The Office of the State Comptroller’s (OSC) in-depth and independent review included the proposed 2017 budget, salary schedules, debt payment schedules and other pertinent financial information. The report found significant revenue and expenditure projections to be reasonable, including:
- The past practice of estimating revenue for the sale of real property has been discontinued
- Estimates for sales tax revenues are realistically based on historical trends
- Pension contributions are realistically based on State Retirement System estimates
In addition, the OSC review cautions that the City’s proposed 2017 budget:
- Only provides minimal funding for capital expenditures, thus requiring additional borrowing
- Does not anticipate the potential financial impact of the settlement of any of the City’s six expired collective bargaining agreements
Further, OSC indicated that the City’s proposed real property tax levy does not comply with the NYS-mandated tax levy limit and that the Troy City Council has not yet adopted a local law to override the limit. Without overriding the tax cap or making significant cuts to the 2017 proposed budget, OSC cautions that the City of Troy will have an unbalanced 2017 budget that will not have sufficient revenues to fund operations.
The Office of the State Comptroller’s report is available on the City of Troy website for download and review here.
John Salka, Deputy Director of Public Information
[email protected] / (518) 279-7131