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2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN CITY OF ALBANY 2018 NEW YORK STATE BUDGET TESTIMONY ---PAGE BREAK--- 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN THANK YOU • Chairperson Young, Senate Finance Committee • Chairperson Weinstein, Assembly Ways & Means Committee • Members of the New York State Senate & Assembly • Our Albany Delegation • Senator Breslin • Fahy • McDonald 2 ---PAGE BREAK--- THE CASE FOR PERMANENT CAPITAL CITY FUNDING 3 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 37% 27% 36% City of Albany Property Tax Exempt Property Owned by NYS Other Tax Exempt Property Non-Tax Exempt Property ---PAGE BREAK--- OUR CAPITAL CITY & A CITY OF NEIGHBORHOODS 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 4 ---PAGE BREAK--- HOME TO SEVERAL OF THE REGION’S LARGEST TAX-EXEMPT EMPLOYERS 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 5 Albany Medical Center 9,000+ employees & 700+ students Stratton VA Medical Center 1,300+ employees SUNY University at Albany 3,400 employees & 17,000+ students College of Saint Rose 320+ employees & 4,200 students Center for Disability Services 2,700+ employees St. Peter’s Hospital 3,275 employees Albany Memorial Hospital 590 employees ---PAGE BREAK--- SUNY University at Albany 3,400 employees & 17,000+ students Harriman Campus 7,000 employees NYS Education Department, NYS Capitol, Empire State Plaza, and NYS Museum 11,000+ employees SUNY Polytechnic Institute 300+ employees Wadsworth Center 1,100+ employees NYSDOCCS Training Facility NYS Thruway Authority Headquarters NYS OMH - Capital District Center NYS Dept. of Environmental Conservation Dormitory Authority ---PAGE BREAK--- TAX-EXEMPT PROPERTY • The City of Albany has more tax-exempt property than any other upstate city with at least 50,000 residents 7 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN *As of 2017 Assessment Roll **As of Sept. 27, 2017 64% 56% 46% 42% 42% 38% 35% 29% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% Albany** Syracuse Troy Buffalo Niagara Falls Schenectady Utica Rochester Tax Exempt Property as a Percentage of Total Land Value* ---PAGE BREAK--- OUR CAPITAL CITY & A CITY OF NEIGHBORHOODS 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 8 24% 12% 60% 40% 0% 10% 20% 30% 40% 50% 60% 70% Homeowners Businesses Inequitable Tax Levy Burden Land Value Owned Tax Levy ---PAGE BREAK--- AIM: INEQUALITY FOR A CITY DRIVEN BY EQUITY 9 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 261,310 145,170 210,565 50,193 62,235 50,129 97,856 $617.22 $494.31 $419.04 $354.52 $258.87 $244.96 $128.84 $0.00 $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00 0 50,000 100,000 150,000 200,000 250,000 300,000 Buffalo Syracuse Rochester Niagara Falls Utica Troy Albany Population vs. AIM Per Capita for Upstate New York Cities ---PAGE BREAK--- $58,550,000 $27,620,971 $55,349,400 $34,465,755 $68,795,242 $113,999,102 $30,005,865 $119,100,000 $65,334,787 $70,822,758 $172,549,102 $57,626,836 $174,449,400 $99,800,542 $139,618,000 Albany Utica Rochester Syracuse Buffalo City Tax Levy School Tax Levy Total 2018 CITY, SCHOOL, AND TOTAL TAX LEVY 10 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN ---PAGE BREAK--- AIM COMPARED TO TOTAL TAX LEVY 11 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 7.31% 27.96% 50.58% 71.90% 115.52% 1368.59% 357.70% 197.71% 139.08% 86.57% 0.00% 200.00% 400.00% 600.00% 800.00% 1000.00% 1200.00% 1400.00% Albany Utica Rochester Syracuse Buffalo AIM as % of Total Levy Total Levy as % of AIM ---PAGE BREAK--- COMPOUNDING INEQUITY 12 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN $1,763.30 $925.96 $828.48 $687.47 $534.30 $128.84 $258.87 $419.04 $494.31 $617.22 $0.00 $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00 $1,400.00 $1,600.00 $1,800.00 $2,000.00 Albany Utica Rochester Syracuse Buffalo Tax Levy Per Capita vs. AIM Per Capita Tax Levy Per Capita AIM Per Capita ---PAGE BREAK--- 40% 45% 50% 55% 60% 65% 70% 75% 80% TEN MOST FISCALLY STRESSED NYS CITIES (SEPT. 2017) NYS COMPTROLLER FISCAL STRESS SCORE 13 KEY Significant Fiscal Stress to 65% of total points) Moderate Fiscal Stress to 55% of total points) Susceptible to Fiscal Stress to 45% of total points) 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN ---PAGE BREAK--- FUND BALANCES IN UPSTATE NEW YORK 14 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN Assigned/Unassigned Fund Balances as Percent of Expenditures* 42,647,207 66,579,587 9,219,493 39,580,712 5,631,048 18% 18% 14% 11% 3% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 Syracuse Buffalo Utica Rochester Albany General Fund Balance (2016) FB as % of Expenditures *As per NYS Comptroller’s Fiscal Stress Monitoring Review – FY 2016 ---PAGE BREAK--- HIGH TAX RATES IMPACT BUSINESS COMPETITIVENESS Cheesecake Factory Blu Stone Bistro Café Capriccio Jack’s Oyster House 15 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN ---PAGE BREAK--- BACK-TO-BACK BUDGET DECREASES – FIRST TIME IN MORE THAN 60 YEARS 16 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN “The 2018 budget…was unanimously approved (by Albany’s Common Council)” ---PAGE BREAK--- WHY IS THIS IMPORTANT? 17 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN $12,500,000 $4,227,518 $163,880,268 CITY OF ALBANY STRUCTURAL DEFICIT Budget Reductions in 2017 & 2018 Remaining Cost to Operate Capital City Capital City Funding ---PAGE BREAK--- VALIDATING OUR NEED 18 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN “This suggests that a phased approach balancing City expenditure reforms, targeted revenue initiatives, and State aid reflecting Albany’s unique situation could lead to longer-term budget stability.” “Since taking office in 2014, Mayor Sheehan has recruited a strong corps of senior personnel who have brought great enthusiasm to the challenge of day-to-day operations and long-term reform.” ---PAGE BREAK--- OUR NEED 19 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 37% 27% 36% City of Albany Property Tax Exempt Property Owned by NYS Other Tax Exempt Property Non-Tax Exempt Property ---PAGE BREAK--- THANK YOU 2018 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 20