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 2018 fiscal year are reasonable.
The City of Newburgh, located in Orange County, is authorized to issue debt not to exceed $15 million to liquidate the accumulated deficit in the general fund as of December 31, 2010. New York State Local Finance Law requires all municipalities that have been authorized to issue obligations to fund operating deficits to submit their proposed budgets for the next fiscal year to the State Comptroller for review while the deficit obligations are outstanding.
- The significant revenue and expenditure projections in the proposed budget are reasonable.
- The City faces potential increased salary costs when one of its expired collective bargaining agreements is settled.
- The City continues to budget minimal amounts for contingencies, which provides limited flexibility to address revenue shortfalls or unforeseen expenditures.
- The City’s proposed budget complies with the tax levy limit.
- City officials should consider the potential financial impact of the settlement of collective bargaining agreements.
- Review the adequacy of contingency appropriations.