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2020-2021 Budget

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2020-2021 Budget City of Syracuse Annual Budget Fiscal Year Ending June 30, 2021 Mayor Ben Walsh cover credit to: Aiden McGuire of Aiden Media OFFICE OF THE MAYOR Mayor Ben Walsh April 8, 2020 Dear City Residents, Friends and Neighbors, Pursuant to Article VI, Chapter I, Section 6-102 of the City Charter, I present the budgets for the City of Syracuse and the Syracuse City School District for fiscal year 2021, the period of July 1, 2020 through June 30, 2021. Our fiscal year 2021 budget proposed to the Common Council in the amount of $253.3 million recommends spending that will continue the delivery of all city programs and services. The proposal also includes funding for road and infrastructure projects FY21 Budget Facts across the City; improvements to parks and recreation facilities; funding $253.53 million for public safety; as well as the implementation of the City’s proposed new lead ordinance and an Includes no increase in the improved online permitting system to streamline investments in the City. property tax rate Projects a $11.1 million revenue This budget was developed and submitted in an unprecedented time and manner. Large parts of the shortfall, including $6.1 million world and our nation, including the City of Syracuse, are under the grips of the COVID-19 pandemic. drop in sales tax revenue in FY 21 due to COVID-19 City staff charged with developing the budget and the Common Council, whose duty it is to review Because of increase in property and pass a budget, have and will be required to complete these responsibilities working remotely to value, overall tax levy generates reduce the risk of spreading the virus. While the conditions are changing in various parts of the nation additional $1.5 million tax and world, no country or community can consider itself safe from COVID-19. revenue Pandemic creates unprecedented The proposed budget, which covers the period between July 1, 2020 and June 30, 2021, includes no uncertainties in revenue and increase in the property tax rate. At the time of this submission, the budget anticipates the COVID-19 expenses pandemic will create a revenue shortfall of $11.1 million. The projected decline includes a 6.6% sales tax revenue drop of $6.1 million, as well as other reductions in taxes and fees to the City. The measures to slow the spread of the COVID-19 pandemic began to affect revenue in the City of Syracuse in mid-March, just as the City was finalizing its 2021 budget plan. To adjust to further anticipated declines in income, the Administration and all city departments completed full reviews of their budget proposals and reduced projected spending in every aspect of daily operations. With few exceptions based on essential needs and critical investments, the revised budget includes a hiring and salary freeze across City government. Because of an increase in property values, the overall tax levy will generate an additional $1.5 million in projected revenue for the City. The Syracuse City School District levy will remain unchanged from last year. The proposal also includes an average water rate increase of approximately $3 per quarter for residential users. Other new revenues are expected from a Parking Fine Amnesty program, the first in a decade, and increases in off-street, non-metered parking fees. Even with the additional revenue and budget actions, the plan anticipates a draw on the City’s fund balance of $13.9 million. Through smart fiscal planning and strong Council involvement in recent years, we’ve been able to protect the City’s fund balance, so it remains virtually the same amount as when I took office. Our fiscal plan prior to COVID-19 had us on track to reduce our reliance on the fund balance in our budget for the third straight year, but the pandemic changed that. Accessing the fund balance at this time provides City residents some protection if other sources of revenue don’t materialize in the weeks and months ahead. We will do everything in our control to ensure the pandemic only creates a delay on the City’s road to fiscal sustainability. This proposed budget funds the implementation of a new lead ordinance to protect the health of children and families. The Common Council identified passing a lead ordinance as a top priority in its legislative agenda and is expected to act on it this spring. The law will enable code inspectors in areas of the city with high lead risk to test for lead even when chipped paint or lead dust is not visible. The Division of Code Enforcement will add two new housing inspectors to accommodate the addition of lead testing to the duties of all housing inspectors. The budget also funds a full-time program coordinator, a critical component of the lead program to ensure quality control of testing and submissions by property owners. The budget also includes funding for continuing major upgrades to the City’s permitting process which will make approving projects in the city faster and easier. It will fund the implementation of software systems for online permit submission and review, as well as fund a more efficient online permit management system. As Syracuse recovers from the pandemic, the permitting improvements will make the City more competitive to investors who will undertake projects in Syracuse that will create jobs and generate revenue for the City. The plan continues to invest in public safety for Syracuse residents. It maintains all funded positions in both the Syracuse Police Department and Syracuse Fire Department, and includes a planned new class of firefighters, the second since Mayor Walsh took office. While the budget does not currently anticipate a new cadet class for the Police Department, which has brought on three cadet classes since 2018, budget dollars allocated for vacant positions could be re-directed to bring on an additional class, if needed. The budget continues to fund staffing and resources for the City’s leadership and involvement in neighborhood, economic growth and jobs initiatives, including: Syracuse Surge, the City’s strategy for inclusive growth in the New Economy; Resurgent Neighborhoods Initiative, a neighborhood and business corridor revitalization program, including the Infill Housing Strategy, which will create new housing construction in neighborhoods across the City of Syracuse; and Syracuse Build, the City-led partnership for construction training, workforce development and local hiring. The proposed budget recommends using newly expanded Community Development Block Grant (CDBG) funding through the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act to support housing and neighborhood programs that will be affected by the pandemic. In addition to supporting partner agencies like the Greater Syracuse Land Bank, CARES Act funding will also fund the following city services: blighted and emergency property demolitions; code enforcement housing, lead, and sanitation inspectors; and a GIS analyst to assist with neighborhood planning and emergency response. The impact of COVID-19 on world and local economies has been swift and significant. It has also created uncertainties about what the long- term impact of the pandemic will be. Our budget proposal is based on what we know today. It will be subject to swings based on what happens at the state and federal level and with our economy. I look forward to working in partnership with the Council as it reviews the budget in the days and weeks ahead to react to the rapidly changing economic landscape. Thank you for your perseverance in these challenging and extraordinary times. Ben Walsh Mayor of Syracuse SUBSEQUENT EVENTS The budget approved by the Common Council included the following amendments: Increase the Gain on Disposal of Assets Revenue by $3,000,000 to $3,125,000 Decrease Police Overtime Wages by $1,500,000 to $6,500,000 Decrease Allowance for Negotiations by $500,000 to $3,500,000 Decrease Undesignated, Unreserved Surpluses and Balance use by $5,000,000 to $8,900,000 Decrease the School District’s Tax Levy by $2,565 to $66,418,788 Decrease the School District’s Sales Tax by $228,434 to $450,000 Decrease the School District’s State Aid Basic by $36,902,846 to $356,463,861 Increase the School District’s All Other Revenues by $720,000 to $8,106,250 Decrease the School District’s Various Expenditure Accounts by $36,413,845 CITY OF SYRACUSE, NEW YORK HONORABLE BEN WALSH COMMON COUNCIL Hon. Helen Hudson, President Hon. Khalid Bey, Councilor-at-Large Hon. Rita M. Paniagua, Councilor-at-Large Hon. Michael Greene, Councilor-at-Large Hon. Timothy Rudd, Councilor-at-Large Hon. Joseph G. Carni, First District Councilor Hon. Patrick J. Hogan, Second District Councilor Hon. Chol Majok, Third District Councilor Hon. Latoya Allen, Fourth District Councilor Hon. Joseph T. Driscoll, Fifth District Councilor OFFICE OF MANAGEMENT AND BUDGET Ms. Mary E. Vossler, Director Ms. Julie Castellitto, Assistant Director Ms. Mary Yehle, Budget Analyst III Ms. Stacy Jennis, Budget Analyst II BUDGET FOR THE CITY OF SYRACUSE FOR THE PERIOD OF JULY 1, 2020 - JUNE 30, 2021 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 8, 2020; published in the official newspaper on April 23, 2020, was amended through nine ordinances by the Common Council on May 6, 2020, pertaining to the City budget and the School District budget. The Mayor declined to object to the Common Council’s amendments and the budget in its amended form became effective as of May 6, 2020 pursuant to Section 6-102 (4) (c) (1) of the City Charter of the City of Syracuse (1960).
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