City of Yonkers – Budget Review (B6-14-14) - Revised

Issued Date
July 03, 2014

Purpose of Audit

The purpose of our budget review was to determine whether the significant revenue and expenditure projections in the City’s adopted budget for the 2014-15 fiscal year are reasonable.


The City of Yonkers 2014-15 adopted budget totals $1.02 billion. The budget includes operating and debt service funding of $522.9 million for the Yonkers Public Schools and $497.1 million for the City. The 2014-15 adopted budget is $30.9 million more than the City’s adopted budget for 2013-14, an increase of 3.1 percent.

Key Findings

  • The budget includes nonrecurring revenue of $28 million, authorized by Chapter 55 of the Laws of 2014, which will not be available in future years and will create a funding gap.
  • The City continues to rely on fund balance for recurring expenditures.
  • Revenue estimates for sales tax may be optimistic.
  • The budget includes $5.3 million in revenue generated by red light cameras; the legislation authorizing this revenue is set to expire on December 1, 2014.
  • The City continues to rely on debt to pay for tax certiorari settlements, incurring debt and interest costs.
  • The appropriation for firefighter overtime may not be adequate.

Key Recommendations

  • Find alternate sources of revenue or reduce appropriations to offset nonrecurring revenues.
  • Monitor sales tax revenues throughout the year and take prompt action to adjust expenditures if revenues begin to fall short of expectations.
  • If the red light camera legislation is not approved, reduce expenditures to offset lost revenue.
  • Pay tax certiorari costs through the operating budget rather than through debt financing.
  • Assess the sufficiency of the firefighter overtime appropriation and determine whether expected measures to reduce these costs are reasonable.