City Council

Minutes of the Finance Meeting Troy City Council September 20, 2017 6:00 pm The meeting was called to order at 6:00 pm by Council President Mantello The Pledge of Allegiance was led by Patti O’Brien The roll being called the following answered to their names: Council Member Gulli (arrived at 6:02pm), Council Member McGrath, Council Member Bodnar, Council Member Kopka, Council Member Donohue, Council Member Sullivan-Teta, Council Member Ashe-McPherson and Council President Mantello. Absent Council Member Doherty In attendance were Mayor Madden, Corporation Counsel Caruso, Deputy Comptroller Piotrowski, and Deputy Director of Public Information John Salka. There were 2 members of the public. Deputy Comptroller Piotrowski introduced Alan Walther and Heather Mowat of Bonadio & Co. Mr Walther stated the Council was given draft copies of the Financial Statements, Single Audit Reports and the Internal Controls Matter Report. Mr. Walther explained that there are two types of accounting principles; Other Comprehensive Basis of Accounting (OCBOA) and Generally Accepted Accounting Principles (GAAP) and City follows OCBOA. Mr. Walther stated Bonandio is required to issue an opinion on the financial statements in accordance with GAAP and this will cause an adverse opinion as we do not follow GAAP, however, Bonadio will give an unmodified opinion on the financial statements and note that they we are in accordance with financial reporting provisions allowed by the NYS Office of the State Comptroller. Mr. Walther explained the audit consists of performing transaction testing and substantive tests. Mr. Walther gave an overview of the Independent Auditors report and the Financial Statements. Council President Mantello asked if the $2,038,051 is a surplus and Mr. Walther stated it is the excess revenue over expenditures and that is the amount the fund balance grew in 2016. Council President Mantello referred to the property tax abatements of $1,198,366 that were taken of off the tax rolls. Mr. Walther stated the tax abatement disclosure is new for 2016 and it has no effect in the City’s financial statement. Council President Mantello asked if the $1,198,366 was taken off the tax rolls due to PILOT’s and Mr. Walther replied yes. Council Member Bodnar stated that many of the PILOT’s were awarded by Troy IDA and we are realizing revenue from them and he didn’t want it construed as a loss in tax revenue because it wouldn’t be accurate and without the IDA agreements projects wouldn’t happen. Deputy Comptroller Piotrowski stated the IDA PILOT’s have created an estimated economic value to the City of $174,837,000 and have created 990 full time jobs. Council President Mantello requested that the IDA show the economic impact and what will be taken off the rolls. Heather Mowat reviewed the Other Internal Control Matter document also known as the Management Letter and stated that they recommend we adopt GAAP for financial reporting. Deputy Comptroller Piotrowski concurred that we should be following GAAP and noted there is a financial cost affiliated with it. Ms. Mowat referred to the Single Audit Report and noted that the purpose of this report is to describe the scope of their testing of internal control and the compliance of how the money is spent for the purpose that it was allocated. She reviewed the Schedule of Findings and noted that if we are to use GAAP that within two years we would qualify as a low risk auditee. It was determined that the DOT audit will delivered for the October meeting. Council President Mantello thanked Deputy Comptroller Piotrowski, his staff and Bonadio. CONSIDERATION OF ORDINANCES ORD #97 ORDINANCE AMENDING THE 2017 GENERAL FUND AND CAPITAL PROJECTS FUND BUDGET Ordinance passed by a unanimous vote ORD #98 ORDINANCE AMENDING THE 2017 GENERAL FUND BUDGET Council President Mantello asked what the salary is for the new greens keeper. It was determined his salary is $61,522. Ordinance passed by a unanimous vote ORD #99 ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE ALL NECESSARY AND ESSENTIAL DOCUMENTATION TO PURCHASE REAL PROPERTY INTERESTS REQUIRED UNDER THE SOUTH TROY INDUSTRIAL PARK ROAD PROJECT – PURSUANT TO P.I.N. 1754.59 Council President requested a list of the properties that were eminent domain. Council member Bodnar asked how much grant money we have available. Deputy Comptroller Piotrowski stated we get 95% reimbursement. Council President Mantello requested more information. Tabled by a unanimous vote due; more information required ORD #100 ORDINANCE AMENDING THE CAPITAL PROJECTS FUND Ordinance passed 7 yes, 1 no (Ashe-McPherson) ORD #101 ORDINANCE AMENDING THE 2017 GENERAL FUND AND SPECIAL GRANTS FUNDS Council member Bodnar stated the consortium contributions were withheld for a few years as the consortium did not like the where the City was going to use the money. He further stated that the consortium then agreed to pay only if the monies were for a Comprehensive Plan and now we find out that it will cost us another $35,000 and we have to dip into our contingency. He further stated by withholding the money it caused us not to do things that we needed to do and as an example cited the conditions of an ambulance with the floor boards rusting through. Council President Mantello stated the Plan was due in 2016 and Steve Strichman has invested many hours and redrafted the plan as the Canadian firm did not address the neighborhoods. Council member Ashe-McPherson agreed with Council member Bodnar that the consortium contribution could have used for other things. McGrath asked if we don’t vote yes, what will happen, Deputy Comptroller Piotrowski stated this was caused by the lack of communication historically between the Planning Office and the Comptroller’s Office as the original budget for this project was only set up for the initial contract with Urban Strategies. He further stated the $18,000 was not budgeted for as it was a cost that incurred outside of the initial contract and this has been corrected. Council member Gulli asked if the consortium needed the plan for grants. Mayor Madden replied that he was not aware of that requirement. Council member Bodnar stated he heard that RPI needed the Comprehensive Plan attached to their grant application. Mayor Madden stated they gave us the full amount but the overage was due to work in excess of the plan. Council Member McGrath asked if we have the Comprehensive Plan will it benefit us for grants and the Mayor replied that it would and it will be a basis for the rework of the zoning ordinance. Council President took a slow roll: Gulli(yes), McGrath (yes), Bodnar(yes), Kopka (yes), Donohue (yes), Sullivan-Teta (yes), Ashe- McPherson (no), Mantello (yes) Ordinance passes 7 yes, 1 no (Ashe-McPherson) ORD #102 ORDINANCE AMENDING THE CAPITAL PROJECTS FUND TO ALLOCATE FUNDING FROM THE DEBT SERVICE FUND TO CORRECT PROJECT FUNDING Ordinance passes by a unanimous vote ORD #103 ORDINANCE AMENDING THE 2017 GENERAL FUND AND CAPITAL PROJECTS FUND BUDGET Ordinance passes by a unanimous vote ORD #104 ORDINANCE AMENDING THE 2017 GENERAL FUND BUDGET TO APPROPRIATE ADDITIONAL FUNDING FROM THE NYS GOVERNOR’S TRAFFIC SAFETY COMMITTEE FOR POLICE TRAFFIC SERVICES Ordinance passes by a unanimous vote ORD #105 ORDINANCE AMENDING THE 2017 GENERAL FUND BUDGET TO APPROPRIATE ADDITIONAL FUNDING FROM THE NYS GOVERNOR’S TRAFFIC SAFETY COMMITTEE FOR THE CHILD PASSENGER SAFETY PROGRAM Ordinance passes by a unanimous vote ORD #106 ORDINANCE AMENDING THE 2017 GENERAL FUND BUDGET TO APPROPRIATE ADDITIONAL FUNDING FROM THE NYS GOVERNOR’S TRAFFIC SAFETY COMMITTEE FOR PEDESTRIAN/BICYCLIST EDUCATION AND ENFORCEMENT Ordinance passes by a unanimous vote ORD #107 ORDINANCE AMENDING THE CAPITAL PROJECTS FUND Ordinance passes by a unanimous vote ORD #108 ORDINANCE AMENDING THE CAPITAL PROJECTS FUND BUDGET Ordinance passes by a unanimous vote CONSIDERATION OF RESOLUTIONS RES #75 RESOLUTION ACCEPTING THE 2016 FINANCIAL AND SINGLE AUDIT OF FEDERAL EXPENDITURES AS PREPARED BY THE BONADIO GROUP Resolution passes by a unanimous vote ADJOURNMENT Motion to Adjourn McGrath, 2nd Bodnar Meeting adjourned 7:59 pm Patti O’Brien City Clerk An audio recording of this meeting is on file in the City Clerk’s Office