Quoted from SueM2342

i wonder how Chief Hamilton would explain a 12% increase in retirement spending

has to be more than a bad economy as the general retirement is only up 6%

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ROTTERDAM
Use of fund balance eyed to keep budget in line
BY JUSTIN MASON Gazette Reporter
Reach Gazette reporter Justin Mason at 395-3113 or jmason@dailygazette.net.

    Supervisor Harry Buffardi introduced a tentative budget that increases spending, but will keep the town within the parameters set by the state’s 2 percent cap.
    The $21.54 million spending plan includes no layoffs or cuts to services, the supervisor reported during Wednesday’s Town Board meeting. The budget does, however, rely on roughly $300,000 of fund balance to keep general fund spending beneath the cap.
    “I realize that we need to reduce our dependence on fund balance and I have reduced in the 2013 budget the appropriated fund balance used to reduce taxes by $500,000,” Buffardi said after introducing his budget.
    Including special districts, the budget increases spending by $494,844 over the previous year. General fund spending will increase by roughly $315,000 over the 2012 budget proposal.
    Under the town’s dual tax rate system, homeowners will pay about $3.66 per $1,000 of assessed property value to support the general and highway funds. A home assessed at $200,000 could expect tax bill of about $732 before special districts are included.
    Buffardi intends to send the budget to an ad hoc committee composed of residents, which will soon be established to give the board input on potential modifi cations. He anticipates having the group organized to begin picking through the budget by next month.
    “Maybe at one of these meetings they’ll come up with something we missed,” he said.
    In most areas, the budget maintains line items set forth in the spending plan approved for 2012. The budget reflects the town switching Assessor John Macejka Jr. back to a full-time worker and provides Town Attorney Kate McGuirl a $2,500 raise over the $75,000 she was scheduled to earn this year.
    The budget also provides an additional $20,000 for a senior account specialist in the receiver of taxes office. Buffardi said the money was shifted from the Highway Department budget. Donna Larson was moved into the tax offi ce position earlier this year.
    Meanwhile, several other positions funded in the 2012 budget were either reduced or eliminated. A full-time typist position in the town’s Justice Court was reduced to part time and a vacant bookkeeper’s position in the comptroller’s office was eliminated.
    Buffardi said the budget again relies on some of the reserve funds from the town’s special districts. But in each case, he said the budget only allocates the funds for work conducted by employees paid out of the general fund.
    “We actually segregated it out,” he said. “We’ve got it fi gured down to the minute.”
    Buffardi acknowledged the budget won’t be popular with everyone. The spending plan holds the line on nearly all raises — including among the town’s unionized workers — and reduces the highway department’s paving allowances to a minimum.
    “There’s some harshness to this budget,” he said. “There’s no doubt about it.”
    The budget also includes increases to certain town fees. However, the spending plan does not include revenue for yard waste removal, a fee that was being mulled by town officials during the summer.
    Buffardi has until Friday to submit a proposed budget. The town is expected to host a public hearing on the spending plan later this month with the anticipation of approving it sometime in November.
    Board member Robert Godlewski was left unimpressed by the tentative proposal, claiming that it plays a numbers game to push the tax rate increase below the tax cap. And he pledged to dissect the plan meticulously to show where it masks fi scal irresponsibility.
    “It’s all smoke and mirrors,” he said of the budget.

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What is COLA?
A COLA payment is an adjustment, based on the cost-of-living index, which will permanently increase your retirement benefit. It is designed to address future inflation as it occurs.
This Year’s COLA Increase
The September 2012 COLA equals 1.4 percent, for a maximum annual increase of $252.00, or $21.00 per month before taxes.
How COLA is Determined
COLA payments equal 50 percent of the cost-of-living index and can be as much as 3 percent, but not less than 1 percent. COLA is calculated on the first $18,000 of your Single Life Allowance benefit or the actual amount of your benefit, if less. Once COLA payments begin, they continue automatically and you will receive an increase each September.
Eligibility
To begin receiving COLA payments, you must be:
Age 62 or older and retired for five or more years; or
Age 55 or older and retired for ten or more years (uniformed employees such as police officers, firefighters and correction officers); or
A disability retiree for five years; or
The spouse of a deceased retiree receiving a lifetime benefit under an option elected by the retiree at retirement. An eligible spouse is entitled to one-half the COLA amount that would have been paid to the retiree when the retiree would have met the eligibility criteria.
A beneficiary receiving the accidental death benefit for five or more years on behalf of a deceased Employees’ Retirement System member.
Receiving COLA
You will receive your first COLA increase the month following the month you become eligible. You will receive the prorated portion due for the month you became eligible plus the COLA for the month you receive the payment.
Once you are eligible, you will receive an annual COLA increase each September. We will send you a letter informing you of the amount prior to your September 30th pension payment, when the increase goes into effect.

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DiNapoli Proposes Early Warning System To Identify Local Governments In Fiscal Stress
New Report Finds Cities' Financial Outlook Deteriorating; Contains Detailed Economic and Demographic Data for Cities
With a growing number of local governments facing significant fiscal stress, State Comptroller Thomas P. DiNapoli announced plans today to implement an early warning monitoring system that would identify municipalities and school districts experiencing signs of budgetary strain so that corrective actions can be taken before a full financial crisis develops.

"Local officials are struggling to cope with considerable economic challenges and structural budget imbalances and the situation may only get worse," said DiNapoli. "That's why my office is proposing an early warning system that will identify those headed down the path to fiscal crisis sooner and give local officials and the public sufficient time to discuss options for turning things around."

Using data already submitted by more than 4,000 local governments, DiNapoli's office will calculate and publicize an overall score of fiscal stress for municipalities and school district across the state. These scores will be used to classify whether a community is in "significant fiscal stress," "moderate fiscal stress," or "nearing fiscal stress." This system is based on a process that DiNapoli's auditors have been using to detect financial problems in communities.

The early warning system will include nine financial indicators, such as cash-on-hand and patterns of operating deficits, together with broader demographic information like population trends and tax assessment growth. DiNapoli plans to distribute the proposed system to officials in the state for their review during a 60-day comment period. DiNapoli will implement the system starting with those localities whose fiscal year ends December 31, 2012 and later apply it to villages and school districts whose fiscal years end at various periods throughout the year.

The proposed system was announced in conjunction with a report released by DiNapoli today that examines the demographic and financial trends of New York's 61 cities (excluding New York City) over the past three decades. The report found that many of New York's cities are struggling to balance budgets and revitalize deteriorating local economies. This report is the second in a series of reports examining local government finances and factors causing fiscal stress.

"Cities are struggling to keep their heads above water," said DiNapoli. "The fiscal challenges they face have evolved over many years and are systemic."

Since 1980 city expenditures have jumped $2.7 billion, while locally raised revenues increased by only $2.1 billion, according to the report. Cities historically relied on property taxes as their primary source of revenue to fund expenses. With property taxes outpacing housing values and income levels, many troubled cities are relying more on sales taxes and are increasing fees for services. Due to a stagnant economy, however, these new revenue sources have not kept pace with growing expenditures.

State aid has increased from 16 percent to 21 percent of total revenues for cities over three decades, while federal aid has declined from an average of 17.5 percent of total revenues to 6.8 percent. The level of growth in state aid has varied from one city to another.

Other findings in the report include:

For the 61 cities examined, overall population decreased by 15 percent since 1980. The loss was more profound in some regions. For example, Niagara Falls lost 30 percent of its population; Buffalo 27 percent; Rome 23 percent; Utica 18 percent; Elmira 17 percent; and Binghamton 15 percent.
Many cities suffered sizeable job losses between 1980 and 2010. Cities in the Buffalo-Niagara region lost 31,300; the Rochester area lost 14,200; and the Syracuse region lost 11,000.
By 2010, the state unemployment rate of 8.5 percent was exceeded in a number of cities around New York. This included: Buffalo (12.4 percent); Elmira (12.3); Gloversville (14); Utica (11.5); Rochester (11.7); Oswego (11.4); and Syracuse (10.2).
Since 1980, poverty rates in New York's cities have outpaced the statewide and national averages. The report found 48 cities exceeded the state average of 14.2 percent. The highest rates of poverty were found in Syracuse (31.1); Rochester (30.4); Buffalo (29.6); Utica (29); Binghamton (27.; Gloversville (27.5); and Newburgh (25..
The report includes extensive charts detailing specific economic and demographic information about New York's cities. For a copy of the report visit: http://osc.state.ny.us/localgov/pubs/fiscalmonitoring/pdf/nycreport2012.pdf

For more detailed information about DiNapoli's proposed fiscal stress monitoring system visit:http://osc.state.ny.us/localgov/pubs/fiscalmonitoring/pdf/fiscalstressmonitoring.pdf

To see DiNapoli's first report released in August on fiscal stress, click here.

DiNapoli's Division of Local Government and School Accountability collects and analyzes the annual financial reports, and where applicable, the property tax cap calculations, from local governments, school districts, public authorities, fire districts and other special taxing districts. It also is responsible for auditing more than 10,000 local government entities.


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Albany Phone: (51 474-4015 Fax: (51 473-8940
NYC Phone: (212) 681-4840 Fax: (212) 681-7677
Internet: http://www.osc.state.ny.us
E-Mail: press@osc.state.ny.us
Follow us on Twitter: @NYSComptroller

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DiNapoli: Town Deficit Caused By Inaccurate Budgeting
Due to unreasonable budget estimates, the Town of Poughkeepsie was left with a $1.5 million deficit in its major fund balances at the end of 2010, according to an audit released today by State Comptroller Thomas P. DiNapoli. The town has also failed to repay more than $3 million in inter-fund loans it made between different tax bases.

From 2008 to 2010, auditors found the town's three major funds declined from a total surplus of $77,500 to a combined deficit of $1.5 million. The deficits were caused by the failure of the town to develop reasonable budget estimates and make adjustments when it became clear that the anticipated results would not be achieved.

Revenues in the town's major funds were overestimated by a total of approximately $4 million and $2 million in 2009 and 2010, according to the audit.

"Budgets should be an accurate financial blueprint so that local governments can provide needed services with the resources available," said DiNapoli. "Town officials need to make more realistic budget estimates so they don't experience continued revenue shortfalls and operating deficits."

Town officials addressed their cash flow problems by using inter-fund loans, mostly from the town's water fund, to pay for recurring expenditures in the general town wide fund, general town outside village fund, and highway fund. Inter-fund loans transfer money from one fund to overcome shortages in another fund.

Auditors found that 79 percent of inter-fund transfers made as of Dec. 31, 2010 came from the water fund. The town has yet to repay $3.5 million to the water fund. It is improper to use special water tax assessment revenues for non-water fund purposes without repayment.

Other audit findings include:

Town officials did not use competitive methods, enter into written contracts or comply with Workers' Compensation Law when they procured professional services.
The town appropriated $400,000 in both 2010 and 2011 from the water fund to the general town-wide fund for services that officials purportedly rendered to the water district. Documentation to support these allocations was not provided.
The town's external audits were not performed in a timely manner.
DiNapoli recommends that the town board develop reasonable revenue estimates and monitor and adjust budgeted revenues when necessary. Town officials should also adopt a policy to govern unexpended surplus funds.

The audit also called on town officials to:

Develop a plan to address the negative fund balances from prior fiscal years.
Repay inter-fund advances between tax bases, with comparable amounts of interest, by the end of the fiscal year in which the advances are made.
Ensure that annual audits are performed in a timely manner.
Obtain proposals for professional service contract amounts in excess of $15,000.
Town officials disagreed with certain aspects of the audit, but indicated they planned to implement some of the recommendations contained in the report. Their full response is included in the audit.

For a copy of the report visit: http://www.osc.state.ny.us/localgov/audits/towns/2012/poughkeepsie.htm


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Albany Phone: (51 474-4015 Fax: (51 473-8940
NYC Phone: (212) 681-4840 Fax: (212) 681-7677
Internet: http://www.osc.state.ny.us
E-Mail: press@osc.state.ny.us
Follow us on Twitter: @NYSComptroller