Mayor Palmieri today presented his FY 2022-2023 budget to the Board of Estimate and Apportionment which comes with no tax increase.
The Mayor’s $74.4 million proposed budget increases spending by less than 1% annually over a 14-year span, a testament to the city’s fiscal discipline.
In working collaboratively with City Comptroller Bill Morehouse, the Board of Estimate and Apportionment and the Common Council, the city’s taken strategic and fiscally sound actions to ensure Utica remains on a positive financial trajectory.
This positive trajectory has been recognized by all the financial rating institutions. Over the past several years, Fitch Ratings, Moody’s and Standard & Poor’s Global Ratings (S&P Global) have all upgraded Utica’s credit rating; with Utica achieving an “A” rating with S&P Global for the first time in the city’s history.
One of the city’s most significant financial successes is the rebuilding of its fund balance. The Government Finance Officers Association (GFOA) recommends a $12 million fund balance given the size of Utica’s budget. In 2012, the city’s fund balance was negative $15,000.
Last month, the city secured its 9th consecutive budget surplus; increasing its fund balance to over $11 million; its highest level in decades.
A key indicator of economic development is growth in sales tax, and the city has seen a consistent increase of sales tax revenue. The city’s sales tax has increased by 22% since 2013.
Another significant financial accomplishment is the expansion of the city’s tax base. The city’s assessment roll increased by $7 million compared to last year. This is the result of high levels of construction occurring throughout the city, and the outstanding work of Urban and Economic Development as the city has successfully marketed and sold over 800 foreclosed properties to private developers since 2012.
The cumulative impact of budget surplus’, increase of fund balance, tax base expansion and increasing sales tax revenue has a substantive and positive effect on the budget. As a result of these fiscal improvements, the city now has the financial resources and capability of implementing a self-insurance plan.
If the city had not achieved the fiscal means to implement self-insurance, our health insurance rate would have increased by 15% this year; which equates to a 4% property tax increase. As such, by transitioning to self-insurance, the cost of health insurance will be less for every city employee and our tax-payers. In addition, the city will provide all of the benefits our employees have in their current health plan.
Mayor Palmieri stated, “The track record and credibility of this Administration in improving the finances of Utica is strong. As a result of our improvement, the city is able to implement a self-insurance plan, a goal that would have been inconceivable 10 years ago.”
The Mayor continued, “For the eleventh consecutive year, I am proposing a fiscally responsible budget which provides the services and resources needed for continued economic development. I look forward to working with Comptroller Morehouse and the Common Council in the coming weeks.”
Comptroller Bill Morehouse stated, “As a result of the strong working relationship between the Comptroller’s Office, the Mayor’s Office and the Common Council, the City of Utica has achieved tremendous economic and financial progress. I commend Mayor Palmieri and his staff for crafting another responsible budget that will continue to strengthen Utica’s financial position.”
The Mayor’s Budget Message and Proposal will be posted on the city website, http://www.cityofutica.com, tomorrow, Tuesday February 8th.
