Full Text
UNLEASHING ALBANY’ S POTENTIAL 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN CITY OF ALBANY 2017 NEW YORK STATE BUDGET TESTIMONY ---PAGE BREAK--- 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN THANK YOU • Chairperson Young, Senate Finance Committee • Chairperson Farrell, Assembly Ways & Means Committee • Members of the New York State Senate & Assembly • Our Albany Delegation • Senator Breslin • Fahy • McDonald 2 ---PAGE BREAK--- OUR CAPITAL CITY & A CITY OF NEIGHBORHOODS 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 3 ---PAGE BREAK--- OUR CAPITAL CITY & A CITY OF NEIGHBORHOODS 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 4 ---PAGE BREAK--- NYS COMPTROLLER FISCAL STRESS SCORE 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 40% 45% 50% 55% 60% 65% 70% 75% 80% TEN MOST FISCALLY STRESSED NYS CITIES (SEPT. 2016) 5 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) ---PAGE BREAK--- UNLEASHING ALBANY’ S POTENTIAL 21st CENTURY CITY GOVERNMENT 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 6 ---PAGE BREAK--- BUILDING THE BRIDGE • Centralized Department of Administrative Services • Implemented Enterprise Resource Planning (ERP) software for accounting • Implemented Kronos for timekeeping • Treasurer’s Office implemented tax billing software • Investment in additional technologies • Rollout of automated recycling pilot program • Eliminating waste and continued cost reductions 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 7 ---PAGE BREAK--- LARGEST EXPENDITURE DECREASE IN MORE THAN 15 YEARS $180,607,786 $176,982,803 2016 2017 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 8 ---PAGE BREAK--- WHY IS THIS IMPORTANT? 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN $164,482,803 Remainder of 2017 Budget $9,468,406 What we already cut* $12,500,000 Our ask CITY OF ALBANY 2017 STRUCTURAL DEFICIT *Operating Expenses, Contracted Services, Attrition, Efficiencies, etc. 9 ---PAGE BREAK--- ($35,000,000.00) ($30,000,000.00) ($25,000,000.00) ($20,000,000.00) ($15,000,000.00) ($10,000,000.00) ($5,000,000.00) $0.00 2017 2018 2019 Alternative Budget Gap Scenarios with State Aid No Aid Full Aid in 2016, No Aid After Receive $12.5 Million Every Year WHY IS THIS IMPORTANT? 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 10 ---PAGE BREAK--- UNLEASHING ALBANY’ S POTENTIAL PARTNERING WITH NEW YORK STATE 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 11 ---PAGE BREAK--- CLOSING THE GAP • FRB highlighted the City of Albany needs to expand revenue sources • After thoroughly reviewing finances, outside consultants agree a structural deficit exists • A patchwork of spin-ups and other one-time funding streams has maintained solvency from year to year without addressing the underlying issues 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 12 ---PAGE BREAK--- CAPITAL CITY CHALLENGES • $12.5 million structural deficit between the cost of operating the Capital City & the revenue that can be reasonably raised to fund operations without making damaging cuts • Every property owner would receive a 22% property tax increase should the City of Albany not receive the $12.5 million Capital City Funding 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 13 ---PAGE BREAK--- UNSUSTAINABLE CIRCUMSTANCES: TAX-EXEMPT PROPERTY • 63% of the property in the City of Albany is tax-exempt • New York State owns 60% of the tax-exempt property in the City of Albany • Current New York State funding to the City of Albany under Sec. 19-a of the Public Lands Law is equivalent to 0.36% of the value of New York State-owned property in the City of Albany 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 14 ---PAGE BREAK--- 15 ---PAGE BREAK--- AIM: INEQUALITY FOR A CITY DRIVEN BY EQUITY • The City of Albany receives less AIM per capita than any other upstate city with at least 50,000 residents 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN City Population AIM Per Capita Buffalo 261,310 $617.22 Syracuse 145,170 $494.31 Rochester 210,565 $419.04 Niagara Falls 50,193 $354.52 Utica 62,235 $258.87 Troy 50,129 $244.96 Schenectady 66,135 $169.44 Albany 97,856 $128.84 16 ---PAGE BREAK--- CITY & SCHOOL TAX LEVY 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 17 City City Tax Levy School Levy Total AIM Aid AIM as % of Total Levy Total Levy as % of AIM Albany $58,000,000 $103,659,129 $161,659,129 $12,607,823 7.80% 1282.21% Utica $27,332,869 $22,630,540 $49,963,409 $16,110,473 32.24% 310.13% Rochester $55,349,400 $107,566,700 $162,916,100 $88,234,464 54.16% 184.64% Syracuse $34,315,624 $58,556,352 $92,871,976 $71,758,584 77.27% 129.42% Buffalo $69,277,242 $57,270,405 $126,547,647 $161,285,233 127.45% 78.46% ---PAGE BREAK--- HIGH TAX RATES IMPACT BUSINESS COMPETITIVENESS 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN Olive Garden Blu Stone Bistro Café Capriccio Jack’s Oyster House 18 ---PAGE BREAK--- OUR ASK • New York State partners with the City of Albany for $12.5 million in Capital City Funding to address this inequity • Amend Public Lands Law Sec. 19-a to provide the City of Albany with additional revenue because of the amount of New York State-owned land within the City 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 19 ---PAGE BREAK--- UNLEASHING ALBANY’ S POTENTIAL THANK YOU 2017 CITY OF ALBANY BUDGET TESTIMONY MAYOR KATHY SHEEHAN 20