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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

City of Yonkers – Budget Review (B6-15-15)


Released: May 15, 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 2015-16 fiscal year are reasonable.

Background

The City of Yonkers is authorized to issue debt totaling $45 million to liquidate the current deficits in the City School District’s general fund as of June 30, 2014. Chapter 55 of the Laws of 2014 requires the City to submit their proposed budgets for the next fiscal year to the State Comptroller and the Commissioner of Education for review while the deficit obligations are outstanding.

Key Findings

  • There is a budget gap of $25.8 million between the District’s budget request and the City’s proposed budget, the budget request did not include an appropriation for textbooks and the budget request underestimated pension costs by approximately $460,000.
  • The City continues to rely on fund balance for recurring expenditures.
  • Revenue estimates for metered water sales, sewer rents, mortgage tax and income tax may not be achievable.
  • The appropriations for tax certiorari settlements and contingencies may not be adequate.

Key Recommendations

  • Work with District officials to eliminate the proposed budget gap and assess appropriations for textbooks and pension costs.
  • Develop a plan to maintain fund balance at a reasonable level.
  • Review the revenue estimates for metered water and sewer rents and amend as necessary.
  • Assess the sufficiency of appropriations for tax certiorari settlements.
  • Consider establishing and funding a contingency fund.

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