Skip to Content

Login   Subscribe   Site Index   Contact Us   Google Translate™

NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

City of Newburgh – Budget Review (B6-15-24)


Released: November 12, 2015 -- [read complete report - pdf]

Purpose of Budget Review

The purpose of our budget review was to determine whether the significant revenue and expenditure projections in the City’s proposed budget for the 2016 fiscal year are reasonable.

Background

The City of Newburgh, located in Orange County, issued debt totaling $15 million to liquidate the accumulated deficit in the City’s general fund as of December 31, 2010. Local Finance Law requires all local governments that have been authorized to issue obligations to fund operating deficits to submit their tentative budgets for the next fiscal year to the State Comptroller for review while the deficit obligations are outstanding.

Key Findings

  • Based on the 2016 invoice received, the appropriation for the New York State Police and Fire Retirement System is underestimated by $348,773.
  • The City continues to budget minimal amounts for contingencies, which provided the City with minimal flexibility to address revenue shortfalls or unforeseen expenditures.
  • The 2016 proposed budget does not include an allowance for uncollectible taxes.
  • The City faces potential increased salary costs when two expired contracts are settled.
  • The City’s proposed budget complies with the tax levy limit.

Key Recommendations

  • Adjust the appropriation for retirement costs to reflect known actual costs.
  • Review the adequacy of contingency appropriations.
  • Consider including an appropriation for uncollectible taxes or increasing the contingency appropriation to cover the amount of uncollectible taxes.
  • Consider the potential financial impact of contract settlements when finalizing the 2016 budget.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236