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2006/2007 Budget Contains a Total Appropriation of $516,948,011

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2006/2007 Budget Contains a Total Appropriation of $516,948,011 These increases are required to adequately maintain our aging infrastructure systems. The impact of this 12.65% water rate increase and 10% sewer rate increase will vary with usage. For a typical one-family household, additional costs are estimated to April 10, 2006 be approximately $24/yr. While the need to exercise spending restraint limits the number of initiatives that can be considered, this budget does provide for: Fellow Syracusans: - Collaborating with Onondaga County, the City School Pursuant to Article VI, Chapter 1, Section 6-102 of the City District and community and neighborhood groups to Charter, I hereby present to you the budget I have approved for establish a new Westside Initiative Program to the City of Syracuse and the Syracuse City School District for strengthen families and ensure successful outcomes the period of July 1, 2006 through June 30, 2007. for City youth living in our poorest neighborhoods ($350,000) Overview: The 2006/2007 budget contains a total appropriation of $516,948,011. Of this amount, $246,648,266 (48%) funds City - Promoting more effective neighborhood decision- operations and $270,299,745 (52%) is allocated to the School making by providing professional planning resources District. for Tomorrow’s Neighborhoods Today (TNT), our citizen participation organization ($75,000) This budget, if enacted, will close the projected $27 million City general fund budget gap without raising property taxes, without - Building upon the City’s completed Comprehensive employee layoffs and without service reductions. It also Plan by authorizing the supplemental funds needed authorizes a $15.1 million (5.9%) increase in school spending, to complete a Land Use Plan ($39,000) made possible by a record aid to education package approved by the State Legislature last month. - Funding cost-of-living increases for the City workforce, subject to successfully completing Although the combined City and School District property tax rate negotiations with employee unions will not increase for the second straight year, water and sewer user fees will be increased effective with July 1, 2006 billings. Revenues: performing up to budgeted amounts. For next year, I have adjusted the estimates from these revenue accounts downward Highlights on the revenue side of this proposal to more conservative levels: include the following items for the next fiscal year: - Building Permit income was reduced by $1.4 million - A net increase of $12.1 million across all categories of State aid, primarily the result of: - Parking ticket collections have been reduced by $335,000 o $14.4 million more through the AIM program o $ 2.6 million less through the spin-up program - Revenue from pension borrowings will be down by $160,000 reflecting the change in the maximum - $9.3 million from the City’s prior years’ surplus, amounts authorized under New York State law leaving the recommended amount of 5% of our budget as a “rainy day” fund Expenditures: - $1.2 million in additional revenue from the 1.4% growth in our property tax base as recently certified In order to close the projected budget gap, two significant by the Department of Assessment reductions on the expenditure side are incorporated in this budget. Cash Capital has been reduced by 50%, or $1.3 million - $1.0 million in increased sales tax revenue, assuming from last year’s amount. As a result, certain equipment a 2% growth in County-wide receipts purchases and improvements scheduled in the City’s Capital Improvement Plan for next year will have to be deferred. - $400,000 in Federal reimbursements from the initial year of participation in the new Medicare Part D In addition, over $1 million in salaries associated with currently prescription drug plan for seniors vacant positions, other than uniformed police officers and firefighters, has been deleted. This measure will require strict - $300,000 in increased contributions from City retirees review of future hiring requests. towards their health benefit package by standardizing co-pays at the same level as active employees as of Should additional revenue become available to the City, priority January 1, 2007 should be given to restoring these reductions. - $100,000 in anticipated revenues from a new special Employee wages and fringe benefits are by far the single most events fee for certain downtown events to help defray important factor in determining expenditure growth. Major set-up, clean-up and security costs now incurred by components of the personnel increases include: City forces and ultimately paid by City taxpayers - $2.6 million in allowance for negotiations to provide for negotiated wage increases No revenue is assumed from the existing Carousel Center or its expansion. - $4.1 million for health benefits costs The mid-year report for 2005/06, filed with the Council on - $ .9 million in pension costs per billings from the March 1st, documented several revenue items that are not New York State Retirement System Other areas of expenditure increases include debt service for Conclusion: previously authorized projects (up $.7 million) and revenue anticipation note interest (up $570,000) reflecting rising interest The budget presented to the Common Council was rates and a continuing draw-down on reserves. accompanied by the City’s updated Four-Year Financial Plan, as submitted to the State Comptroller and the State Budget Office The budget also reflects the transfer of all costs for conducting last month. It is clear from that plan and from Comptroller City general and primary elections to Onondaga County and the Hevesi’s recent report on fiscal stress in New York State cities, shift of the parking checker function from the Department of that we will be facing additional financial challenges in the future. Finance to the Police Department. However, because of prior planning and our diligence in City School District: assuring that we receive our fair share of available revenues, we are again in a position to meet the needs of the City and the In March, the Board of Education submitted a budget request to School District in the coming year without resorting to property the City totaling $273.2 million, a 7% increase over the current tax increases. budget. The budget request contained a funding gap of $19.4 million. The State Legislature has since enacted the State budget, which Sincerely, addresses $16.5 million of that gap. When coupled with the property tax freeze, this action leaves the District with a budget $15.1 million higher than last year, but $2.9 million less than requested. The District has several options to address its remaining gap for Matthew J. Driscoll next year including: Mayor - Reviewing whether “off-budget” State aid increases of approximately $20 million, which have also been approved for the District, can be used to offset some SUBSEQUENT EVENTS: items contained in the general fund budget request On May 8, 2006, the Common Council passed three - Approving the use of additional fund balance to keep amendments to the revenue side of the Mayor’s proposed property taxes level, consistent with the City’s budget. Taken together, these amendments produced a net approach and the District’s contingency plan reduction in the level of appropriated City and School District fund balances, resulting in a 6% increase in the combined - Re-examining spending priorities, including proposed property tax rate for 2006/07. The Mayor approved the School new initiatives, in light of what are now known to be District amendment, but vetoed the amendments on the City the limits of available funds side. The Council took no action to override these vetoes and the budget, as amended, will go into effect on July 1st. C I T Y O F S Y R A C U S E, N E W Y O R K HONORABLE MATTHEW J. DRISCOLL, MAYOR COMMON COUNCIL Honorable Bea González, President Honorable Van B. Robinson, Councilor-at-Large Honorable Kathleen Joy Callahan, Councilor-at-Large Honorable Bill Ryan, Councilor-at-Large Honorable Stephanie A. Miner, Councilor-at-Large Honorable Jeffrey D. DeFrancisco, Councilor, First District Honorable Patrick J. Hogan, Councilor, Second District Honorable Ryan McMahon, Councilor, Third District Honorable Thomas M. Seals, Councilor, Fourth District Honorable William J. Simmons, Councilor, Fifth District Office of Management and Budget: Mr. Kenneth Mokrzycki, Acting Director Mr. John J. Vavonese, Assistant Director Mr. Robert Sprague, Budget Analyst III Ms. Danielle M. Ormsby, Budget Analyst II Ms. Mary C. Yehle, Budget Analyst I Ms. Carol A. LaGuardia, Secretary BUDGET FOR THE CITY OF SYRACUSE FOR THE PERIOD OF JULY 1, 2006 - JUNE 30, 2007 In accordance with Article VI, Section 6-102 of the Charter of the City of Syracuse, and pursuant to the Uniform System of Accounts for Cities, as provided for by Section 36 of the General Municipal Law, this budget was prepared by the Director of Management and Budget; approved by the Mayor and transmitted to the Common Council on April 10, 2006; published in the official newspaper on April 22, 2006; was amended through three ordinances by the Common Council on May 8, 2006. Two of the ordinances were vetoed by the Mayor on May 19, 2006; the third was approved. The Common Council took no further action and the budget, in its amended form, became effective June 1, 2006, pursuant to Section 6-102 (4) (c) (1) of the City Charter of the City of Syracuse (1960), as amended. THE CITY OF SYRACUSE 2006/2007 GENERAL STATISTICS POPULATION* CITY OF SYRACUSE.............................................................................................................................
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