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2018 Proposed Budget City of Albany 2018 Proposed Budget Kathy M. Sheehan, Mayor Michael W. Wheeler, Budget Director MISSION OF CITY GOVERNMENT The only reason we are here is to serve the City of Albany. It is our job to provide services and support that build a safe, healthy, and economically vibrant community. TABLE OF CONTENTS MAYOR’S letteR...........................................................................................................1 coMMonlY UseD PHRases ......................................................................................4 ORGanIZatIonal CHART .........................................................................................5 BUDGet SUMMARIes of REVenUes & EXPenDITURes .................................6 OPERatING BUDGet REVenUE .............................................................................10 OPERatING BUDGet EXPenDITURes BY DEPARTMent................................16 caPItal BUDGet .......................................................................................................89 WateR & WasteWateR seRVIces ......................................................................95 YOUTH & WORKfoRce seRVIces .......................................................................112 THE case foR caPItal CITY FUNDING .........................................................116 looKING AHeaD .....................................................................................................117 contRIBUtoRS .........................................................................................................118 INDEX ...........................................................................................................................119 CITY OF ALBANY 2018 PROPOSED BUDGET KATHY SHEEHAN MAYOR DEAR COMMON COUNCIL MEMBERS anD RESIDENTS OF THE CITY OF albanY: Over the last four years, my administration has worked tirelessly to fulfill my promise to provide responsive City government, equitably improve our neighborhoods, implement effective economic development initiatives, and foster sound financial management. Our City continues to do more with less, and my 2018 budget is no different – embracing a “yes, if” and refusing to allow a “no, because” mentality. This budget continues to create a fiscally sustainable future for our City. My 2015 and 2016 budgets grew at less than the 2% benchmark set by Governor Cuomo for his state budget. My 2017 budget included a 2% decrease in expenditures from 2016; the largest, and only the third annual expenditure decrease in more than 15 years. My 2018 budget builds upon my commitment to fiscal responsibility by implementing consecutive annual budget decreases for the first time in more than 60 years. Embracing PFM Report Recommendations Citywide In 2017, the PFM Group, in consultation with New York State, released the results of its year-long evaluation of the City of Albany’s finances. The PFM Group’s report praised the leadership team we have built at City Hall and validated the work we have undertaken to put our City on a sustainable fiscal path. We have already implemented many of the report’s recommendations – all while maintaining City services and streamlining processes – and this budget includes the introduction of additional recommendations. My 2018 budget centralizes payroll duties and creates a Payroll Director position to eliminate duplicative tasks occurring in multiple City departments. We will also continue to implement a county-wide 911 dispatch model, complete the roll-out of cart-based waste and recycling collection, and consolidate our fleet maintenance programs. These initiatives will enhance the services we provide to our residents and employees every day in the most cost-effective manner possible. MAYOR’S LETTER 1 Realizing the Benefits of Technology Investments For the second consecutive year, our budget was built by our Budget Office in the new Enterprise Resource Planning (ERP) system. This new system allows us to use position-based budgeting to realize vacancy savings, accounting for periods of time throughout the year where individual positions may not be filled. We are also continually evaluating actual spending levels to right-size revenue and expenditure projections. This has led to $2.3 million in vacancy savings in the 2018 budget, with a net reduction of 12 positions citywide. Investing in Our Most Valuable Resource – Our People To develop a 21st century city government, we must add and retain the most talented public servants available. Due to past fiscal challenges, salaries for non-union City employees have remained stagnant for several years, leading to increased turnover. To ensure we are creating a more efficient and professional workforce, this budget includes an across-the-board 2% raise for all non-union City employees (excluding elected officials and Budget Office staff) for the first time since 2013. To help fund these well-deserved raises, and to counter the loss of several one-time revenues realized in 2017, this budget proposes a nominal nine-tenths of one percent property tax levy increase (equating to approximately $14 for a home assessed at $150,000). This increase is smaller than was suggested by PFM Group’s report, and still achieves the goal of providing long-overdue raises to some of our most dedicated employees. Reorganization of Essential City Offices We continue to provide excellent and equitable services to our community while striving to increase efficiencies and use our limited resources wisely. To do this, the 2018 budget includes a reorganization of the Human Resources Office and an expansion of the Information Technology Office. This year, we are creating the position of Deputy Human Resources Director & Chief Diversity Officer for more direct and efficient counsel and oversight of labor management, EEO/MWBE, and the Human Rights and Civil Service Commissions. The Office of Information Technology is adding an employee to centralize services and eliminate redundancies among City departments, helping to provide 24/7/365 cyber-security services to all departments. 2 CITY OF ALBANY 2018 PROPOSED BUDGET LEAN-er City Government My administration has also leveraged the relationships we have fostered with New York State to create a LEAN Office within the Department of Administrative Services. As the first New York State municipality to implement LEAN, we recently sent several front-line employees to LEAN training to receive their “Empire Belts.” To oversee this initiative, we will create a LEAN Innovation & Process Director position to review and streamline processes and procedures in every department throughout the City, with the goal of making the customer experience more efficient and user-friendly. Ensuring Albany Receives Its Fair Share For too long, our City was not receiving its fair share of state aid. That’s why last year my administration launched the “Fair Share for Albany” campaign. Because of our strong fiscal management and the leadership of Governor Cuomo and other state leaders, Albany was successful in securing an unprecedented $12.5 million in new, unrestricted Capital City Funding – necessary aid that was not a spin up, allowing us to avoid borrowing against our future. This new aid marks a tremendous step forward for our city, but we are not done yet. This 2018 budget again includes $12.5 million in Capital City Funding, which we will fight to make permanent. We continue to make a unique, compelling, and indisputable case to state leaders that Albany is treated like no other city in the State; receiving far less unrestricted aid while supporting a staggering 64% of non-taxable property. I look forward to working with the residents of the City of Albany and members of the Common Council to approve this budget, and to continue doing more with less while creating a more efficient, secure, and sustainable financial future for the City of Albany. Sincerely, KATHY SHEEHAN MAYOR, CITY OF ALBANY MAYOR’S LETTER 3 COMMONLY USED PHRASES EQUITY AGENDA: the philosophy and more. In 2017, this aid was by New York State’s LEAN Office. guiding the City of Albany’s provided as new, unrestricted aid, The LEAN Office trained four staff decisions and policies. This and was not a “spin up,” allowing members during a week-long agenda is built on the principles the City to avoid borrowing boot camp for “Empire Belts.” of accessibility and inclusion, against our future. Those four Empire Belt employees with a focus on initiatives will be a part of complex, inter- Spin up: the act of requesting addressing economic, racial, and Capital City Funding in exchange disciplinary projects that will work social inequality, especially in for accepting an advance to include multiple stakeholders, neighborhoods that have been payment on the New York State including frontline staff to Senior historically marginalized. Public Lands Law 19-A Payment Leadership, to drive efficiencies and reduce costs. PFM Report: (also known as in Lieu of Taxes (PILOT) that the the “City of Albany, New York City of Albany receives until 2032. FTE: Full Time Employee. FY2017-FY2020 Financial Options” SHared SerVices: an initiative Vacancy SAVings: this budget report) a financial review and underway among Albany County line reflects the amount of money recommendation document and the municipalities within a department can account for published by the PFM Group, in to develop new ways to reduce when individual positions are not consultation with New York State, expenditures and increase filled because of resignation or after undertaking
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