Budget Budget PresentationPresentation

20092009City of CohoesCity of Cohoes

November 6, 2008November 6, 2008

Van Schaick Neighborhood Van Schaick Neighborhood WatchWatch

Budget / Finance GuidelinesBudget / Finance Guidelines

ExpendituresExpenditures Limit Public Safety Expenditure Increases Limit Public Safety Expenditure Increases

to Inflationto Inflation No New BenefitsNo New Benefits Keep Services Expenditure Increases to Keep Services Expenditure Increases to

Below InflationBelow Inflation

RevenuesRevenues Minimize Property Tax IncreasesMinimize Property Tax Increases Conservative Revenue EstimatesConservative Revenue Estimates

Fund Balance/Future PlanningFund Balance/Future Planning Continue to Build Fund Balance to 5% Continue to Build Fund Balance to 5%

Target to Improve Bond Rating and Target to Improve Bond Rating and Protect against Rainy DaysProtect against Rainy Days

Budget 2009 Budget 2009 RevenuesRevenues

No proposed increases in major No proposed increases in major revenue accountsrevenue accounts

Minimum increase in sales taxMinimum increase in sales tax

Mortgage tax decreasing with fewer Mortgage tax decreasing with fewer sales and refinancingsales and refinancing

No increase in State Aid expectedNo increase in State Aid expected

Budget 2009Budget 2009General FundGeneral Fund

12% Increase in Health Insurance 12% Increase in Health Insurance in 2009in 2009

No increase in State aid projectedNo increase in State aid projected No layoffs of City workforceNo layoffs of City workforce

Dealing with Current IssuesDealing with Current Issues Increasing Energy CostsIncreasing Energy Costs Increasing Fuel CostsIncreasing Fuel Costs Increasing Rock Salt CostsIncreasing Rock Salt Costs

General FundGeneral Fund

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

Salaries Health Insurance Debt Service Retirement Other

2008 2009

General FundGeneral Fund

Salaries49%

Health Insurance13%

Debt Service6%

Retirement6%

Other26%

Annual Energy CostsAnnual Energy Costs

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2006 2007 2008 2009

Gasoline Diesel Heat & Electricity

Budget 2009Budget 2009General FundGeneral Fund

2.81 % Tax Rate Increase2.81 % Tax Rate Increase

Average home ($80,000 assessed) Average home ($80,000 assessed) increase $36.00 in City Taxesincrease $36.00 in City Taxes

Decrease 1.5 FTE positions in Decrease 1.5 FTE positions in City HallCity Hall

Water FundWater Fund 8% Rate increase ($12/Qtr for average user)8% Rate increase ($12/Qtr for average user)

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

Salaries Health Insurance Debt Service Retirement Other

2008 2009

Water FundWater Fund

Salaries22%

Health Insurance6%

Debt Service35%

Retirement4%

Other33%

Decreasing Water UsageDecreasing Water Usage

500470

520490

442 429410

428

0

100

200

300

400

500

600

2000 2001 2002 2003 2004 2005 2006 2007

Gal

Use

d (

mil

lio

ns)

Gal Used (millions)

Water Fund cost driversWater Fund cost drivers

Decreasing water useDecreasing water use

Increased chemical costIncreased chemical cost

Increased energy costIncreased energy cost

Dept. of Health and EPA mandatesDept. of Health and EPA mandates

Debt ServiceDebt Service

Sewer FundSewer Fund 8% Rate Increase ($12/Qtr for average user)8% Rate Increase ($12/Qtr for average user)

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

Salaries HealthInsurance

Debt Service Retirement Albany CountySewer District

Long TermControl Plan

Other

2008 2009

Sewer FundSewer FundSalaries

10%Health Insurance

3%

Debt Service16%

Retirement2%

Albany County Sewer District

43%

Long Term Control Plan5%

Other21%

Albany County Sewer District Albany County Sewer District ChargesCharges

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

2001 2002 2003 2004 2005 2006 2007 2008 2009

Albany County Sewer District Total Sewage Treatment Costs

Sewer Fund Cost DriversSewer Fund Cost Drivers

Albany County Sewer District Albany County Sewer District chargescharges

MS4 mandatesMS4 mandates

Long Control Plan study - Long Control Plan study - $100,000$100,000

Pump Station ImprovementsPump Station Improvements

Overall BudgetOverall Budget Total Budget is $21,600,559 over all Total Budget is $21,600,559 over all

FundsFundsGeneral FundGeneral Fund $17,570,271$17,570,271Water FundWater Fund $1,917,661$1,917,661Sewer FundSewer Fund $2,112,627$2,112,627

Increase expenses of $625,953 or Increase expenses of $625,953 or 2.90%2.90%

General FundGeneral Fund $561,826 or 3.30% $561,826 or 3.30%Water FundWater Fund $41,654 or 2.20% $41,654 or 2.20%

Sewer FundSewer Fund $22,473 or 1.1% $22,473 or 1.1%

CPI-U = 5.6% for 2008CPI-U = 5.6% for 2008

City of CohoesExpenditure Level Change from 2002 to 2012

2002 Actual, 2012 Projection8 October 2008

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

140%

160%

57% -25% 152% 43% 18% 14% -32% 32%

Public Safety Debt Service BenefitsPublic Works &

RoadsRecreation

General Government

Other Inflation

City of CohoesCumulative Year-End Fund Balance

2010, 2011, 2012 ProjectionsProperty Tax: 0% Annual Increase

8 October 2008

-$3,000,000

-$2,500,000

-$2,000,000

-$1,500,000

-$1,000,000

-$500,000

$0

$500,000

$1,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Fund Balance Target (5%)

City of CohoesCumulative Year-End Fund Balance

2010, 2011, 2012 ProjectionsProperty Tax: 4% Annual Increase

8 October 2008

-$1,500,000

-$1,000,000

-$500,000

$0

$500,000

$1,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Fund Balance Target (5%)

City of CohoesCumulative Year-End Fund Balance

2010, 2011, 2012 ProjectionsProperty Tax: 8% Annual Increase

8 October 2008

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Fund Balance Target (5%)

Budget Conclusions Budget Conclusions

There are obstacles to overcomeThere are obstacles to overcome Projections are conservativeProjections are conservative Continued concern of impact on Continued concern of impact on

the taxpayers vs. the cost the taxpayers vs. the cost to provide services with an eye to provide services with an eye towards the current and future towards the current and future financial condition of the City.financial condition of the City.

The budget process is an ongoing The budget process is an ongoing process and this is just the start.process and this is just the start.

Budget VoteBudget Vote

Tuesday Nov 11th at Tuesday Nov 11th at 7pm7pm

Common Council Common Council ChambersChambers