According to an article in the Gazette Newspaper, Adirondack Trust was the successful bidder for the short term bond (twelve months) against anticipated city tax revenues. The interest was just .15 percent. I know that Commissioner Madigan was concerned about the rate the city might have had to pay so this appears to be good news.
The article also reported that the city issued $7.4 million in long term bonds which have an interest rate of only 2.15 percent.
Commissioner Madigan attributed the attractive rates to the city’s high bond rating of AA+ for the last nine years.
According to the article
In addition to borrowing, Madigan’s plan to balance the city budget this year includes drawing $6.5 million from the city’s fund balance, asking for $3.4 million in expense cuts by city departments, and achieving at least $277,000 savings from a voluntary employee furlough program.Gazette June 5, 2020
I remain confused as to how $6.5 million plus $3.4 million plus $277,000.00 will fill the projected city deficit this year of $15 million to $17 million. I have sufficient faith in Commissioner Madigan and the council that there is a solution hidden in all of this.
5 thoughts on “Latest On City’s Budget Issues”
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It would be nice if the Public Safety Commissioner would release figures to the public, the way that Comm. Madigan did. How many arrests, burglaries, domestics, accidents, speeders, etc. compared to the past five years, or even compare it to 2019. Let’s see what our FD and PD have been doing during the pandemic. If the numbers are way down, layoffs can be justified. Bite the bullet like everyone else.
layoffs for Public Safety may well be necessary but they need to be part of a larger plan that encompasses what the city needs to achieve in savings. That would help inform how deep any cuts might be required and when or if they must be done.
The responsibility for such a plan rests with the Department of Finance. It remains to be seen how much cooperation the Commissioner of Finance would get from the other departments but the commissioner is the watchdog the city relies on to lead us.
Ms Madigan already told the commissioners that she wanted 45% furloughs. Each Commissioner was supposed to work with their unions with the help of Mayor Kelly. I think my suggestion is valid. Let Public Safety show us their figures, the same as Ms Madigan. I believe there were furloughs already in Public Works. What’s fair is fair.
henry37, pay attention, madigan went over all the numbers in her update to the council including all of the cuts from each department. Public safety submitted the highest percentage cut to their budget than any other department. Police and fire aren’t immune but I sure as shit am glad we have every last one of them right now.