PROPOSED BUDGET
Mayor releases $74.7 million spending plan for 2020
"After four years of focused efforts to stabilize Troy’s finances, we have established a stronger financial foundation for future growth." — Troy Mayor Patrick Madden
TROY, N.Y. » Troy Mayor Patrick Madden released a 2020 budget proposal for the city.
The proposed $74.7 million budget would be a 3.4% increase or $1.2 million more than the 2019 budget, while still coming in under the state-mandated tax cap for the ensuing fiscal year.
According to the administration, the increase stems from fixed costs such as payroll increases from contractual labor agreements, police and fire pension contributions, two new laborer positions in parks and recreation, one new code officer position in code enforcement, a second set of turnout gear for current Troy firefighters, plus staffing and operating expenses for the South Troy Pool.
Unveiling a fourth consecutive balanced budget, Madden reiterated the importance of being fiscally prudent.
“After four years of focused efforts to stabilize Troy’s finances, we have established a stronger financial foundation for future growth,” Madden said. “This modest increase accounts for mandated cost increases in retirement and contractual payroll increases, and makes necessary investments in our parks, code enforcement, and public safety departments.
“The proposed 2020 budget is a strong but disciplined plan for the continued economic and social prosperity of our commu
nity, one which will benefit the residents and families of Troy and keep heading in the right direction. More challenges lay ahead, but I’m confident we can continue to move our City forward while honoring responsible financial prac
tices to balance our budgets, rebuild infrastructure, invest in neighborhoods, and support small business growth and economic development in Troy.”
As part of being fiscally responsible, Madden also noted the importance of the Collar City’s improved bond rating.
“It helps us in a couple of respects,” Madden said. “We have a lot of construc
tion projects that are going on right now that have grant funding in them, grant funding from the state or the federal government, most notably from the state, on those projects the grant funding comes in when we’re done.
“We can’t wait until we’re done though to pay the contractors, so we have to go to the bond market for BANDS, Bond Anticipation Notes and we use those to finance the project until the grants come in and then we can pay those off. The rate that we pay for that money is directly tied to our bond rating.
“The other way that it impacts us is we’re trying to attract businesses and investors to our community. If you’re a community with a bond rating in the tank and you have not demonstrated a fiscal discipline, you’re probably going to get looked over when investors are seeking to expand, to grow or relocate. So it sends a message.
“It sends a message to the business community. It sends a message to people who are thinking of buying a home in your community, that you’re paying attention to the things that are going to protect their investment, so that’s more of an intangible benefit but that I think is probably the most significant benefit of the two.”
Along with an improved bond rating, since 2016 the Collar City has also received two credit outlook improvements from Moody’s Investors Services and an annual reduction of the city’s fiscal stress score by the New York State Comptroller’s Office.
While noting the progress made, Madden also acknowledged the challenges moving forward.
“Fiscal discipline remains a critical focus of my administration. We have taken tremendous steps forward, but we’re not out of the woods yet,” Madden remarked. “I remain committed to protecting taxpayers through strong financial oversight and strategic planning to build a stronger future for Troy families, residents, and businesses.”
Additional highlights of the proposed 2020 budget encompass the following:
• First phase of the City’s 5-year street paving program ($250,000) in 2020. The administration has committed to increase local funding for street resurfacing and roadway improvements. This funding is in addition to existing New York State CHIPs (Consolidated Local Street and Highway Improvement Program) funding. The schedule is as follows:
• $250,000 in 2021
• $350,000 in 2022 • $350,000 in 2023 • $500,000 in 2024 • Infrastructure investments in various City facilities, including the State Street Parking Garage and surface parking facilities
• Sidewalk replacement ($100,000) for upgrades to the City’s existing sidewalk network. This includes funding for City properties and curb cuts in coordination with the City’s Sidewalk Assessment Program
• Tree removal program to address infected trees impacted by invasive species as detailed in the City’s Community Forest Management Plan
• Demolition f unding ($250,000) to address blighted properties impacting quality of life in Troy neighborhoods
• Purchase of a new fire engine for the Troy Fire Department ($660,000) to enhance emergency response capacity and replace older emergency vehicles
According to City Hall, an average single-family homeowner with a home assessed at $150,000 will see a combined increase of approximately $78.33 annually, or $6.50 per month (taxes and solid waste management fee).
The budget also includes debt repayments owed to
the New York State Retirement System ($1.3 million annually). This stems from deferred payments made prior to 2016.
Plus, there are no proposed increases in city water and sewer fees. A $16.00 per unit increase to the annual solid waste management fee is proposed to account for increases in labor costs ($8.00 of the total per unit increase) and additional expenses within the City’s sanitation operations.
Troy City Council President Carmella Mantello offered her initial thoughts in response to the projected budget.
“While I’m pleased to see that the proposed budget is under the state-mandated tax cap, we cannot forget the fact that under the current administration property taxes, garbage fees, and bulk rate fees continue to take over $6 million each year out of the taxpayer’s pocket,” Mantello stated.
“Over the next several weeks, the City Council has dozens of public hearings and budget committee meetings scheduled, and per the City Charter is to adopt a budget on or before Dec. 1.”
A receipt of the Mayor’s proposed 2020 budget will be presented to the Troy City Council on Tuesday, Oct. 15.