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Common Council Approved Five Amendments to the Mayor’S Sustainable in the Long Run

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Common Council Approved Five Amendments to the Mayor’S Sustainable in the Long Run April 8, 2011 This budget does not include a property tax increase or increase Fellow Syracusans: in fees charged for water and sewer services. Pursuant to Article VI, Chapter 1, Section 6-102 of the City The 2011-12 budget contains a total appropriation of Charter, I hereby transmit to you the budget I have approved for $617,679,559. Of this amount, $283,569,534 (46%) funds City the City of Syracuse and the Syracuse City School District for operations and $334,110,025 (54%) is allocated to the School the period of July 1, 2011 through June 30, 2012. District. Overview: The School District will see a $20.4 million decrease in its The effects of the national, state and local economy have general fund budget over the approved 2010-11 budget. State challenged the City and the School District programs in the aid to the District dropped 4.25% in the current State budget. 2011-2012 budget as presented. Both cannot sustain current Additionally, the District lost approximately $5.7 million in spending levels without using rapidly depleting reserves to Stimulus funding. The School District will receive $64 million balance each year’s budgets. This year is no exception. Despite from the tax levy in 2011-2012, the same amount it received in our fiscal diligence in both 2010 and 2011, we continue to 2010-2011. struggle under the weight of increased pension costs from the State Retirement System, health insurance benefits for both City Expenditures: active and retired employees, a stagnant property tax base and declining aid from New York State. Utilizing our fund balance to The City budget will total $283.6 million, an increase of $5 close the gap is not sustainable in the long-term. million over the current year. Employee wages and fringe benefits are, by far, the single most important factor in Increasing property taxes cannot solve this systemic problem. determining expenditure growth. Major increases in the Families and businesses cannot afford such increases and our employee and retiree costs for health insurance, as well as large overall tax base has not shown the growth necessary to fill this increases for pensions, are key cost drivers in this year’s plan. gap. Therefore, other expenditures had to be reduced. Expenditure assumptions include: - Merger of the Dept. of Public Works and Water Depts. dispatch operations. - $0 in allowance for negotiated wage increases. - Division of Codes will implement CityView software, - A wage freeze for City employees, with the exception of allowing complaints to be collected, prioritized, cited and contractually obligated step increases. addressed in an expedient manner. This will save time and resources, while generating better results for our - Departmental expenditure savings of 1.8% over 2010- neighborhoods. 2011 budget ($2,344,430). - Dept. of Public Works will implement Active Network - Transfer of the City/County Courthouse fees to the City technology, which allows residents to enter issues and Abstract. service requests online for more timely response and tracking by City personnel. It also creates a database of - $500,000 appropriation reduction for housing demolitions citizen complaints which will analyze the strengths and ($500,000 total appropriation). weaknesses of different City services. - Vacant personnel positions across departments. - One class of police officers. - One class of firefighters. The budget maintains all current program levels including: City Revenues: - Cash capital spending at the recommended 2011/12 Highlights on the revenue side of this proposal level of $3.1 million per the approved City Capital include: Improvement Plan. - $10.8 million in increased budgeted sales tax revenue as - A $1 million commitment to the Say Yes to Education a result of the new sales tax distribution formula. program. - $13 million from the City’s reserves to stabilize taxes. The 2011-2012 budget contains several key initiatives and - $1.5 million Federal reimbursement from the Early investments: Retirement Reinsurance Program (ERRP). This is a non- recurring revenue item. - Proposed consolidation of a portion of the City’s Purchase Dept. with Onondaga County. This will provide - Maintain interfund transfers of $4 million from the more economies of scale in our commodity purchasing. Aviation, Water and Sewer Funds. - Shared services with the School District for Information - $400,000 increase in parking meter receipts. Technology services and expertise. The mid-year report for 2010-11 that was filed with the Council on City School District: March 18, 2011 documented several revenue items that are not performing up to budgeted amounts. For next year, I have In March, the Board of Education submitted a general fund adjusted the estimates from these revenue accounts downward budget request to the City totaling $331.7 million. This number to more conservative levels: has since been adjusted to $334.1 million to include funds restored in the New York State budget. This is a four-year low. - State AIM to municipalities – The proposed New York The District will operate with $16.1 million less than it did in 2008- State Budget reduces State aid by $1.8 million from the 2009. amount budgeted last year. The City’s aid has dropped This request includes the following: from the $81.7 million we received in 2008-09 to $71.8 A cut of 500 existing positions or 14% reduction in staff. million for next year. The closure of Bellevue Middle School. A request for a wage freeze from all bargaining units. - Mortgage tax revenue will be less than anticipated due to The adoption of an early retirement incentive in an effort the economic downturn, which resulted in fewer issued to minimize layoffs. mortgages. Continuing with a full implementation of the Say Yes to Education model throughout the entire City. - Four of the City-owned parking garages are not performing up to anticipated budget levels. The 2011- The District’s request to use $10 million of Fund Balance is 2012 anticipated revenue has been adjusted downward included in the recommended spending plan. by $500,000. A tabular comparison of the 2010-11 and 2011-12 School - Revenues from parking ticket receipts will be adjusted budgets is displayed in the budget detail. downward by $300,000. Conclusion: Special Funds: The fiscal difficulties facing the City and the School District are The 2011-2012 budget requires no increase in the water and significant. sewer rates. The current revenues generated by each fund are sufficient to sustain operations. The 2011-12 structural budget gap for both the City and the School District was closed with the use of fund balance. This will The Aviation Fund continues to operate on a break-even basis, be the fourth consecutive year reserves were tapped to close the with projected revenues equal to projected expenses. imbalance. Annual expenditures are outpacing our revenue streams and we are in jeopardy of compromising the basic The Downtown Committee and Crouse-Marshall Special delivery of services our constituents expect. Assessment rates will remain at the same funding levels as last year. The School District’s use of $10 million in fund balance will leave Subsequent Events: only $3 million for future years. The City’s use of $13 million in fund balance will leave only $20 million. Clearly, this is not The Common Council approved five amendments to the Mayor’s sustainable in the long run. Annual use of reserves will lead to a budget at the May 9, 2011 meeting, including a property tax downgrading of our bonds with ratings agencies. increase to raise the School District budget by $2,377,873. On th May 10 , the Mayor vetoed the tax increase but approved the These are the challenges that had to be met by this budget in the other four amendments on May12th, adding $173,000 to both upcoming fiscal year and will continue to be formidable obstacles revenues and total expenditures. as we strive to meet the City’s needs in the future. The Council attempted to override the Mayor’s veto on May 23, 2011, but fail to achieve the necessary six votes. With no further Sincerely, action taken, the budget was thus adopted in its amended form. Stephanie A. Miner Mayor C I T Y O F S Y R A C U S E, N E W Y O R K HONORABLE STEPHANIE A. MINER, MAYOR COMMON COUNCIL Honorable Van B. Robinson, President Honorable Lance Denno, Councilor-at-Large Honorable Pamela Hunter, Councilor-at-Large Honorable Kathleen Joy, Councilor-at-Large Honorable Jean Kessner, Councilor-at-Large Honorable Matthew J. Rayo, First District Honorable Patrick J. Hogan, Councilor, Second District Honorable Ryan McMahon, Councilor, Third District Honorable Thomas M. Seals, Councilor, Fourth District Honorable Nader P. Maroun, Councilor, Fifth District Office of Management and Budget: Ms. Mary Vossler, Director Mr. John J. Vavonese, Assistant Director Ms. Danielle M. Ormsby, Budget Analyst III Ms. Mary C. Yehle, Budget Analyst I Mr. Robert Sprague III, Budget Analyst I Ms. Carol A. LaGuardia, Secretary BUDGET FOR THE CITY OF SYRACUSE FOR THE PERIOD OF JULY 1, 2011 - JUNE 30, 2012 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, 2011; published in the official newspaper on April 30, 2011; was amended through five ordinances by the Common Council on May 9, 2011. One ordinance was vetoed by the Mayor on May 10, 2011; the other four ordinances were approved. The Common Council voted unsuccessfully to override the Mayor’s veto on May 23, 2011 and the budget, as amended, was adopted pursuant to Section 6- 102 (4) (c) (1) of the City Charter of the City of Syracuse (1960).
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