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 2017 fiscal year are reasonable.
The City of Newburgh, located in Orange County, issued debt totaling $15 million to liquidate the accumulated deficit in the general fund as of December 31, 2010. New York State Local Finance Law requires all local governments that have been authorized to issue obligations to fund operating deficits to submit their preliminary budgets for the next fiscal year to the State Comptroller for review while the deficit obligations are outstanding.
- The City continues to rely on one-time revenue from the sale of real property which, if not sold, will cause a revenue shortfall of $230,000.
- The City continues to budget minimal amounts for contingencies, which provides limited flexibility to address revenue shortfalls or unforeseen expenditures.
- The 2017 proposed budget does not include an allowance for uncollectible taxes.
- The City’s proposed budget complies with the tax levy limit.
- Reduce reliance on one-time revenue from the anticipated real property sale.
- 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.