Purpose of Budget Review
The purpose of our budget review was to identify issues which impact the City of Yonkers’ financial condition in the current and future years.
The Office of the State Comptroller, as Fiscal Agent for the City of Yonkers (City), determined that the City’s adopted budget for fiscal year 2021-22 and the related justification documents are in compliance with the requirements of the Fiscal Agent Act (Chapter 488 of the Laws of 1976). The City’s 2021-22 budget totals $1.25 billion. The budget includes operating and debt service funding of $663.6 million for the Yonkers Public Schools (District) and $587.9 million for the City. The 2021-22 budget is $16.7 million more than the City’s budget for 2020-21, an increase of 1.35 percent.
- The 2021-22 budget relies on nonrecurring revenue of $55.2 million, such as fund balance, one-time State funding and sale of property, to balance its budget.
- The City could face a shortfall of $1.8 million for parking violations bureau revenue and $1.3 million for parks revenue.
- The City plans to borrow up to $15 million for tax certiorari settlements in the 2021-22 fiscal year.
- Firefighting overtime costs could potentially be over budget by as much as $2 million based on the 2020-21 fiscal year overtime costs.
- Over the last 10 years, the City’s outstanding debt has grown 9.4 percent and the City’s debt service payments have risen 13.2 percent. The City will need $80.6 million to service its debt obligations during 2021-22.
- Replace nonrecurring revenue, such as fund balance, in the 2022-23 budget.
- Develop a plan to address potential parking violations bureau and parks revenue shortfalls.
- Pay tax certiorari claims from annual appropriations instead of using debt.
- Implement additional changes in procedures to reduce firefighting overtime expenditures.