Minority Democrats on the Troy City Council are criticizing the mayor over late payments and audit submission, but the Republican mayor says it’s unjustified.
A 2023 financial audit was supposed to be submitted to accountants by the end of 2024. But first-term Mayor Carmella Mantello says the audit will be submitted by the council’s next finance meeting on February 20.
“We're healthy financially, we're stable,” Mantello said. “We're in a good place. The accounting we have to fix, and it just isn't going to happen overnight. But we're in a much better place now than we were in 2024.”
The city’s 2023 accounting records weren’t closed in time last year and a rotation of comptrollers left the city scrambling to fix accounting errors. The city recently hired Jack Krokos as its newest comptroller. His predecessor, Dylan Spring, left in July 2024 under mounting pressure from the council to deliver quarterly financial reports.
Speaking with WAMC after Thursday’s finance meeting , Mantello says her administration took the necessary steps to ensure the audit’s late submission had no financial impacts on the city.
“Other municipalities have not completed their audit either. If we didn't report that, it's really bad. You're not transparent. You're not accountable. It could impact your you know, financial rating, we reported to be transparent to comply,” Mantello said. “So it's very important for us. And as you know, all along, I've been very public where we are. I've been very transparent. You know, we're doing everything humanly possible to catch up to unfortunately, 2023 not being closed, and entries not input from 2023 and you know, last year at this time, if I had known the magnitude of what that left us, I would have told folks. But you don't know that magnitude until you delve in.”
Mantello adds the Annual Financial Report for 2024 will be available by May. 2023’s report was not filed on time after being pulled back by the administration when another earlier comptroller failed to complete data entries.
Council Democrats also warned of a missed interest payment on city bond’s totaling nearly $242,000. Council President Sue Steele, who chairs the finance committee, says it could impact the city’s credit rating for years to come.
“I think the city was caught blindsided and didn't realize that they really owed this money, but it's been paid, but it was paid late, and we're going to we're going to pay the consequences in future credit ratings in future payments, how much we will our debt will be sold at it's a big deal,” Steele said.
Last summer, the city received an A1 rating from Moody’s Investors Service for its $8 million Public Improvement Bonds. The bonds, which are subject to reimbursement, allow for infrastructure improvements like drainage repair, paving, and new sidewalks.
The city, which required a state bailout in the 90s, also received its newest S&P Global bond rating, an A+, last year. It’s the highest short-term rating, meaning the city is strong in meeting its financial obligations. According to the city, the S&P rating is based on the city’s actions toward lowering fixed costs and increasing its bond anticipation note paydown positively.
Mantello says it was a clerical error and the city reported the missed payment to be transparent.
“Just a mistake by the finance department,” Mantello said. “And normally an email comes, the email went to the prior comptroller. Yes, there is no Dylan Spring, and an email went to them to remind, there is a reminder. So now that's been fixed. But who knew it was the first time we had the pay so it, you know, clerical error, and it's not an excuse. We're owning it, but it was paid as soon as we found out, and we disclosed that.”
Steele refutes that.
“I can call it a clerical error if I forget to put a stamp on my credit card bill and don't mail it in time,” Steele said. “But I don't think the credit card company is going to be too sympathetic, and it's going to affect my credit rating. It's the same thing with the city.”
The city is working to implement a new accounting system, Tyler Technologies, to bring the city into the 21st century with its accounting and IT. The city is also still working with BST Co., an outside accounting firm hired late last year to close its 2023 books, which were submitted incorrectly earlier in the year by ProNexus.
