When Troy Mayor Patrick Madden released his 2017 budget proposal in early October, it came with a hefty 28.2 percent property tax hike and a 17.5 percent sewer rate increase. With city officials divided over the spending plan, the New York state Comptroller has weighed in.
Behind what the first-term Democrat calls a “realistic” budget, Mayor Madden has a full plate: having to ensure the city provides services to residents while making required improvements and taking measures to remedy problems found by Comptroller Tom DiNapoli, whose office notes the tax levy of 28.2 percent far exceeds the current tax cap. Troy's Majority Steering Committee, comprised of four City Council Members, advised the mayor in a November 3rd letter that they will not override the cap.
City Council President Carmella Mantello is a Republican. "The mayor cannot override the tax cap and will need six council members. We believe right now maybe there's five that are leaning toward the tax increase or some substantial tax increase. The four of us are committed to not override that tax increase without substantial cuts and reductions and a freeze on hiring and outside consultants."
Earlier in the year, the council unanimously passed a 16-point plan that would cut expenditures, raise revenue and cut overtime. The mayor rejected it.
Then the Council unanimously adopted a resolution that any request by the mayor to exceed the tax cap for 2017 should be based on a demonstrated effort to include the City Council corrective action plan, which was submitted to the state comptroller in May. Madden says each of the 16 points were considered as the budget proposal was written. "There are some things in the 16-point plan that were speculative. It's not prudent to include them, but it is prudent to look at them going forward, and we're more than happy to do that. It's just not gonna be a 2017 impact. But, by and large, the vast majority of the items that were raised in the 16-point plan were addressed in the budget, and a couple of items actually that we had put forward that were consistent with the 16-point plan were initially rejected by the council."
One of them eventually did pass. Comptroller DiNapoli says his office will continue to watch the fiscal situation in the Collar City. "We've kept a close eye on Troy for a number of years, and I do think the mayor has brought in a new and fresh perspective. And I know the council leadership has been very focused on resolving the budget and fiscal issues that Troy has. We're monitoring it closely. Obviously our staff is available and has been in touch with the administration. I'm gonna be the optimist and say that they are going to continue to make improvements. We don't wanna see it revert to the situation in the past where there was an oversight role on the part of the state. I don't think the people of Troy want that, I don't think the elected leadership wants that. So we will continue to see how this process unfolds, provide whatever support we can. I think new leadership both in the council and the mayor's office, they will figure out a path to put Troy on a much more solid budget footing than it's been on for a number of years."
Without overriding the tax cap or making significant cuts to the proposed budget, the comptroller warns Troy will have an unbalanced 2017 budget that will not have sufficient revenues to fund operations.
Mantello says the council will sit down with Mayor Madden next week. "The city council committee meetings have finished. All of the committees and preliminary hearings have been done, over 14 meetings in total. The next step is, each council member who chairs a committee has to file a report by Tuesday, November 15th. And the reports will be filed additionally on Wednesday, November 16th. The mayor and the city council will meet to discuss our recommendations. I can tell you the four members, we are committed to seeing the tax increase go down."
Madden: "I'm not confident that that process will get is to the depth of discussion that needs to be had to talk about services versus taxes, and that's what we need to be discussing at this point in time."
Mantello maintains that unless and until Mayor Madden offers recommendations to reduce the 28.2 percent tax hike, the council will not provide the necessary votes to override the tax cap.
The City Council faces a November 29 deadline to vote on the budget.