City of Albany

2017 Proposed Budget

KATHY M. SHEEHAN, MAYOR

RACHEL MCENENY, BUDGET DIRECTOR

Agenda
Mission of the Budget Office
Innovation & Technology Efficiencies
Re-Organization
Summary of Expenses & Revenues
Four Areas of Savings:
Retirement
Workers

Compensation
Property Tax Levy
PILOTs

Mission of the Budget Office

The Budget Office prepares and administers fiscally
responsible operating and capital budgets, and acts as
the City of Albanys financial gatekeeper by
establishing and setting fiscal control systems. The
Budget Director and staff strive to use taxpayer dollars
as efficiently as possible by streamlining operations,
examining expenses, and focusing on recurring rather
than one-shot revenues.

Highlights of 2017 Proposed Budget

Balanced budget
Technology investments in ERP (management and

accounting software) = expanding efficiencies

Largest expenditure decrease in more than 15 years
Tax levy expanding, tax rates decreasing slightly
Centralizing administrative services
No reduction in city services
No layoffs

2017 Goals of the Budget Office

Utilize the Citys new ERP system by providing

comprehensive training to employees

Enhance the ability of City agencies to provide high
quality, valued services at a cost citizens in Albany
can afford
Develop and recommend policies and internal
controls that protect the Citys fiscal foundation
Provide recommendations for state and federal
policies that effect the Citys ability to thrive

Why Did The Gap Grow?

Gap increased from $18 million to $21.5 million
Unrealized Revenues:
Red

light cameras, confined space, false alarm fees,

and double pole
Extending the life of the landfill

Innovation & Technology Efficiencies

ERP Enterprise Resource Planning
Municipal Management & Accounting Software
Compatible with Kronos (timekeeping software)
Vacancy tracking, real-time salary reports
Line-by-line review of expenses and revenue
Predicting expenses and revenue based on historical

trends
Providing departments with real-time financial
overview and communication with Budget Office

Enterprise Resource Planning

The ERP system will help information flow from one

group to another without having redundant systems

or silos of information
The goal of the system is to remove the redundancy
of data and information so it is stored once and used
multiple times to meet different business goals
The fact that it is an enterprise solution allows the
City to work as an organization instead of individual
departments with individual systems

Re-Organization
Department of Administrative Services
Centralizing operations
Eliminating silos of information and authority
Allow for more effective management and control
Significant time in current processes
Efficiencies in processes going forward

Largest Annual Expenditure Decrease in 15+ Years

180,607,786
2016

176,981,803
2017

2017 Expenses

2017 Expenses

Debt Service; 12%

Retiree Health Insurance & Medicare; 7%
Workers Compensation; 2% Salaries; 43%
Retirement; 8%

Operating Expenses; 15%

FICA; 3% Health Ins. & Other Employee Benefits; 9%

2017 Revenue

2017 Revenue

Capital City Funding; 7 %

Sales Tax; 19%

Property Tax; 33%

All Other; 7 %
Other PILOTS/Tax; 4%

State Aid; 9%

19A; 8%
Landfill; 4% Departmental Income; 8%

Four Areas of Savings

Retirement
Workers Compensation
Property Tax
PILOTs

Retirement Savings

16,429,270
2016

14,437,369
2017

Workers Compensation
First reevaluation in 25 years
Workers compensation consultant
RFP for a third-party administrator (TPA)
Liaison between the city & an injured worker
Important factors considered:

Getting workers care quickly without waiting

Getting people back to work
Reduction in administrative and legal costs

Triad Group, LLC

Victoria E. Manes, President

Education
St.

Johns Law School, J.D., 1978

Union College, B.A., 1974
President, Triad Group 2001-Present
Responsible for supervision of over 40 licensed
adjusters
Represent over 80 self insured clients
Over 30 years of experience

Triad Group, LLC

Based in Troy, NY
Certified woman-owned business enterprise (WBE)
State-wide reputation for excellence
Client base includes numerous cities, towns, villages

and counties
Employs nurses and attorneys with years of
experience in workers compensation
Functions are completed in-house

Property Tax Cap Formula

(Previous year tax levy + Previous year reserve offset

- Reserve amount including interest) x Tax base

growth factor] + Previous year Pilots receivable
Previous year tort exclusion) x Allowable levy growth
factor - Pilots receivable coming year + available
carryover = Tax Levy Limit
(56,827,890 + 0 - 0) x 1.00] + 20,458,291) x 1.0068
20,428,973 + 883,964 = 58,266,718

Assessors Formula

Structural Deficit
The budget contains a $12.5 million structural deficit
Comptroller rated Albany among the highest level of

fiscal stress
S&P Rating: A+

Tax-Exempt Properties
63% of All Property in Albany is Tax Exempt

Government office buildings

Colleges and Universities
Hospitals
Non-Profit Organizations

New York State-Owned property accounts for 60% of

all tax-exempt property

Capital City Funding

$12.5 million request in Capital City Funding
Not a spin up
Seeking a continued, permanent commitment from

the State
Albanys unique role as the capital city makes the
argument for Capital City Funding distinctive,
compelling, and indisputable

PFM Review of City Finances

City of Albany worked with PFM group at suggestion

of New York State

Interviewed City senior staff
Provided on-the-ground perspective of City finances
Referred us to subject matter experts within other
municipalities across the country
City of Albany has no contractual relationship with
PFM

Summary
Maintaining same level of city services
Largest expenditure decrease in more than 15 years
Centralizing administrative services
Slight tax rate decrease, tax levy increasing
No layoffs
Less than a 1% increase in salaries (0.33%)
Realizing and anticipating innovation and

technology savings, leading to permanent savings

Common Council Budget Department Office Hours

Every Monday*
From 3:00 PM to 6:00 PM
rmceneny@albanyny.gov

*With the Exception of Columbus Day

Chief of Staff
Albany, NY
Troy, NY
Yonkers, NY
Syracuse, NY

$83,000
$80,342
$140,000
$89,225-$115,480

Rochester, NY

$119,066

Buffalo, NY

$114,240