City Council

TROY CITY COUNCIL FINANCE COMMITTEE AGENDA June 7, 2018 6:00 P.M. Pledge of Allegiance Roll Call Public Forum First Quarter 2018 Financial Reports for the General, Water and Sewer Funds – Deputy Comptroller Andrew Piotrowski LOCAL LAW ORDINANCES 41. Ordinance Amending The 2018 Water Fund Budget. (Council President Mantello) (At The Request Of The Administration) 46. Ordinance Authorizing Settlement Of Claim, To Wit: Apollo Dismantling Services, LLC, Plaintiff, vs. City Of Troy, Defendant. (Council President Mantello) (At The Request Of The Administration) RESOLUTIONS 68. Resolution Approving The Mayor’s Execution Of A Memorandum Of Agreement With The Troy PBA And Officers Perfetti, McMahon, Davis and Kehrer. (Council President Mantello) (At The Request Of The Administration) TABLED LEGISLATION 2018 17. Resolution Determining That Proposed Actions Are Type II Actions For Purposes Of The New York State Environmental Quality Review Act. (Council President Mantello) (At The Request Of The Administration) Tabled at Regular Meeting 1-11-18 18. Bond Resolution Of The City Of Troy, New York, Authorizing The Issuance Of $1,315,000 Serial Bonds To Finance The Cost Of Various Capital Improvement And Technology Improvement Projects. (Council President Mantello) (At The Request Of The Administration) Tabled at Regular Meeting 1-11-18 39. Resolution Stating the City's Council's Policy Regarding the Operations of the Troy City Clerk's Office. (Council President Mantello) Tabled at Regular Meeting 2-1-18  Wm. Patrick Madden Andrew Piotrowski Mayor Deputy City Comptroller Monica Kurzejeski Office of the City Comptroller Deputy Mayor City Hall 433 River Street – Suite 5001 Troy, New York 12180-3406 Date: May 4, 2018 To: Honorable Wm. Patrick Madden City Council Members From: Andrew Piotrowski Deputy City Comptroller Re: First Quarter 2018 Financial Report – General Fund Part I – Revenues General Fund Revenues Revenue 03/31/2018 03/31/2017 $ Change % Change 2018 Actual 2018 Budget $ Diff % Achieved Real Property Taxes 11,995,871 12,439,842 (443,971) -3.57% 11,995,871 23,848,068 (11,852,197) 50.30% Local Sources 881,750 923,379 (41,629) -4.51% 881,750 19,066,000 (18,184,250) 4.62% General Government Support 32,050 36,269 (4,219) -11.63% 32,050 373,500 (341,450) 8.58% Public Safety 492,217 264,990 227,227 85.75% 492,217 485,000 7,217 101.49% Health 315,448 305,791 9,656 3.16% 315,448 2,065,000 (1,749,553) 15.28% Transportation 167,997 144,610 23,388 16.17% 167,997 645,000 (477,003) 26.05% Recreation 64,541 132,369 (67,828) -51.24% 64,541 1,207,000 (1,142,459) 5.35% Home & Community Services 128,703 463,649 (334,946) -72.24% 128,703 2,840,120 (2,711,417) 4.53% Intergovernmental Charges 0 0 0 - 0 250,000 (250,000) 0.00% Use Of Money & Property 2,223 299 1,925 644.43% 2,223 59,000 (56,777) 3.77% Licenses & Permits 236,866 122,699 114,167 93.05% 236,866 1,062,000 (825,134) 22.30% Fines & Forfeitures 344,815 196,073 148,742 75.86% 344,815 1,355,000 (1,010,185) 25.45% Sale Of Property & Compensation For Loss 10,725 37,086 (26,361) -71.08% 10,725 50,478 (39,753) 21.25% Miscellaneous 618,427 369,200 249,226 67.50% 618,427 1,317,000 (698,573) 46.96% Interfund Revenues 271,635 271,635 0 0.00% 271,635 1,700,971 (1,429,336) 15.97% State Aid 0 0 0 - 0 13,953,078 (13,953,078) 0.00% Federal Aid 0 0 0 - 0 557,006 (557,006) 0.00% Intrafund Revenues 0 0 0 - 0 2,222,000 (2,222,000) 0.00% Total 15,563,268 15,707,890 (144,622) -0.92% 15,563,268 73,056,221 (57,492,954) 21.30% 2018 General Fund First Quarter Report – Page 1 Revenues in the General Fund totaled $15,563,268 as of March 31, 2018, which amounts to 21.30% of the 2018 budgeted total. Total revenues decreased by 0.92%, or approximately $144,000, in comparison to the three month total of 2017. Seasonality has a tremendous impact on the revenue recognition in the General Fund. Items such as property taxes are paid in two installments, one in January and the second in July, therefore receiving a significant portion of revenue in the first quarter. First quarter sales tax however is not received until the second quarter of the fiscal year. Real property tax collections were $11,995,871 at the end of the first quarter in 2018, equaling 50.30% of the total revenue budgeted for. This is a decrease however of 3.57% from 2017, caused entirely on the collection rate. The City Comptroller’s Office has already begun mailing letters to unpaid accounts and will closely monitor collections throughout the second quarter to see if it improves. Revenues from Public Safety have already exceeded the amount budgeted for in 2018 with a three month actual total $492,217. It is also an increase of $227,000, or 85.75%, from the three month total of 2017. The cause of the increase is collections for vacant building fees in both the current year and also amounts relevied on to property taxes. Recreation revenues totaled $64,541 as of March 31, 2018, which is a decrease of $67,828 from the three month total of 2017. The decrease is directly caused by the closure of the Knickerbacker Ice Rink in January 2018. Revenue from Fines & Forfeitures has increased by $148,742 in 2018, with a three month total of $344,815. This increase has been caused by an increase in collections from traffic and parking fines. The decrease in revenues from Home & Community Services is due to the recycling bills being due in March in 2017; whereas in 2018 the first installment of the garbage fee was due April 30th. 2018 General Fund First Quarter Report – Page 2  Part II – Expenditures General Fund Expenditures Expenditure 03/31/2018 03/31/2017 $ Change % Change 2018 Actual 2018 Budget $ Rem % Expended Code 1 - Salaries Permanent Salaries 5,326,391 5,334,914 (8,523) -0.16% 5,326,391 23,418,802 18,092,411 22.74% Temporary Salaries 55,762 58,350 (2,588) -4.44% 55,762 583,874 528,111 9.55% Overtime 34,303 8,828 25,475 288.59% 34,303 139,670 105,367 24.56% Overtime - Snow Plowing 140,885 95,440 45,445 47.62% 140,885 150,000 9,115 93.92% Overtime - Police 164,093 118,358 45,734 38.64% 164,093 850,000 685,907 19.31% Overtime - Fire 149,905 175,475 (25,570) -14.57% 149,905 1,145,000 995,095 13.09% Overtime - Public Safety Grants 11,006 67,218 (56,211) -83.63% 11,006 89,306 78,300 12.32% Misc. Other 272,844 238,072 34,772 14.61% 272,844 2,361,772 2,088,928 11.55% Total Code 1 6,155,190 6,096,655 58,536 0.96% 6,155,190 28,738,424 22,583,234 21.42% Code 2 - Equipment 89,441 4,649 84,791 1823.82% 89,441 119,470 30,029 74.86% Code 3 - Materials & Supplies 556,272 338,643 217,629 64.27% 556,272 2,476,959 1,920,686 22.46% Code 4 - Contractual Services Utilities 496,146 450,247 45,899 10.19% 496,146 2,182,700 1,686,554 22.73% Postage 3,535 11,128 (7,593) -68.23% 3,535 48,835 45,300 7.24% Printing & Advertising 14,719 13,186 1,532 11.62% 14,719 71,649 56,930 20.54% Repairs & Rentals 293,490 318,751 (25,261) -7.92% 293,490 2,012,198 1,718,708 14.59% Insurance 301,876 303,897 (2,021) -0.67% 301,876 332,465 30,589 90.80% Dues 6,822 16,443 (9,621) -58.51% 6,822 33,335 26,513 20.47% Consultant Services 335,532 403,348 (67,817) -16.81% 335,532 2,116,434 1,780,902 15.85% Training 19,535 56,761 (37,227) -65.58% 19,535 145,128 125,594 13.46% Travel 1,029 530 499 94.20% 1,029 18,311 17,282 5.62% Judgements & Claims 12,923 2,275 10,648 468.10% 12,923 250,000 237,077 5.17% Contingencies 0 0 0 - 0 940,840 940,840 0.00% Uniforms 20,375 19,783 592 2.99% 20,375 233,066 212,691 8.74% Medical Expenses 25,015 4,119 20,896 507.30% 25,015 48,000 22,985 52.11% Misc. Other 1,306 4,986 (3,680) -73.81% 1,306 17,500 16,194 7.46% Total Code 4 1,532,301 1,605,453 (73,152) -4.56% 1,532,301 8,450,460 6,918,160 18.13% Code 6/7 - Debt Service 4,994,895 4,439,673 555,223 12.51% 4,994,895 7,670,772 2,675,877 65.12% Code 8 - Benefits Pension 1,830,220 1,728,563 101,657 5.88% 1,830,220 7,398,940 5,568,720 24.74% Healthcare 3,334,193 2,882,198 451,994 15.68% 3,334,193 14,103,779 10,769,586 23.64% Dental 151,834 164,912 (13,078) -7.93% 151,834 631,425 479,591 24.05% Social Security 445,766 448,794 (3,028) -0.67% 445,766 2,198,519 1,752,753 20.28% Worker's Compensation 162,923 52,608 110,315 209.69% 162,923 400,000 237,077 40.73% Total Code 8 5,924,936 5,277,075 647,861 12.28% 5,924,936 24,732,663 18,807,728 23.96% Code 9 - Interfund Transfers 0 0 0 - 0 1,100,000 1,100,000 0.00% Grand Total 19,253,035 17,762,147 1,490,887 8.39% 19,253,035 73,288,748 54,035,713 26.27% As of March 31, 2018 the total expenditures in the General Fund were $19,253,035, which is 26.27% of the total adjusted budget. This total is an increase of $1,490,887, or 8.39%, from the three month total of 2018 General Fund First Quarter Report – Page 3 2017. While this increase may appear alarming, it is primarily caused by increases in four areas that are outside of discretionary spending expense categories. The first category that significantly increased from 2017 was health insurance, with a total in 2018 of $3,334,193. The increase from 2017 is 15.68%, or in excess of $450,000. A portion of the increase is attributable to the cost of the Empire Medicare Advantage plan cost increases that will significantly decrease with the City switching to Humana as passed by the City Council effective May 1, 2018. The more concerning increase is within the Blue Shield health insurance plan offered to employees and retired employees under the age of 65. The costs have increased based on usage as the plan is self-insured to a limit of $150,000. The City Comptroller’s Office is working closely with Benetech to monitor and track the costs on a monthly basis; however, because it is based on usage, it is difficult to predict the trend that will occur on a month to month basis throughout the fiscal year. The second category with a significant increase from 2017 is debt service, which totaled $4,994,895 as of March 31, 2018. The timing and frequency of payments is the reason why 65.12% of the budget has been expended, as the first installment of the MAC debt is made in January of each fiscal year. The total debt service costs, including both principal and interest, increased over $555,000 from the three month total of 2017. This increase was caused by an increase in both principal and interest costs related to the City’s Bond Anticipation Notes (BANs) that were renewed in February. The principal costs increased due to the required payments on City funded projects, specifically for police vehicles, which had a BAN issued in 2015, and the Spring Avenue Bridge project. The payment made on the Spring Avenue Bridge project represents the majority of the local share of the project. The interest costs increased due to the overall size of the issuance that was renewed. As discussed previously the majority of BANs that are issued are for cash flow purposes due to grant funding associated with the projects. The City however budgets for the interest costs related to the debt within the General Fund to allow for the grant funds to be used for the actual project costs and not debt related costs. Inevitably the City would be required to pay the interest costs in some fashion and is easier for cash flow purposes and also budgeting practices to budget for the annual interest costs on the February and August debt issuances. The third category that increased from 2017 was pension costs, which totaled $1,830,220 through the first three months of 2018. The costs recorded for 2018 are based on the amount paid for the invoice due February 1, 2018 and the budgeting practices of the City for pension. The increase is caused by an increase in the amount due for the payback of prior year pension deferrals. As previously discussed the payment made in 2018 was the first time the City did not defer any pension costs to future years. Therefore any future increases in costs will be caused by increases in current year expense and not caused by payback of prior year expenses. The final non-discretionary cost category that increased in 2018 was workers compensation which totaled $162,923. The cause of the increase was the settlement of a previous expense that the City faced a significant expenditure for. Permanent salaries decreased slightly from the 2017 three month total in the current year despite raises based on approved union contracts such as the PBA and CSEA for the following reasons: 1. Vacancies in City departments such as the City Purchasing Agent. 2. The 2018 budget eliminated vacant positions that were filled in the first quarter of 2017 such as a position in the Treasurer’s Office. 3. An increase in the number of vacancies in the Police Department when compared to the number of vacancies in the department in the first three months of 2017. Increases in costs relating to regular overtime (exclusive of public safety) and snow plowing overtime both increased when compared to 2017 because of the winter storms experienced throughout the first 2018 General Fund First Quarter Report – Page 4 quarter of 2018. While the snow plowing overtime costs are separate from regular overtime for tracking and monitoring purposes the regular overtime increased specifically within the Sanitation department form bringing in crews on overtime to ensure the City stayed on schedule with city residential pickup. Police overtime, as illustrated in the below graph, was $164,093 at the end of the first quarter in 2018, amounting to 19.31% of the total 2018 budgeted amount. It is important to note that the majority of overtime costs within the Police Department occur during the third and fourth quarters of the fiscal year historically when vacations are more common. The 2018 total was an increase of 38.64%, or approximately $45,000, from the three month total of 2017. The increase was primarily caused by an increase in the number of vacant positions within the department in 2018. In the first quarter of 2017 the department was fully staffed whereas in 2018 there were two vacancies in January, three in February and five in March. 225,000 208,673 175,000 175,037 164,093 125,000 127,742 118,358 75,000 2014 2015 2016 2017 2018 Fire overtime, as illustrated in the line graph below, totaled $149,905 at the end of the first quarter in 2018. This total is 13.09% of the total 2018 budgeted amount. It is important to note that the majority of overtime costs within the Fire Department occur during the third and fourth quarters of the fiscal year historically when vacations are more common. When comparing the results of 2018 to 2017, the 2018 amount has decreased by approximately $25,500 or 14.57%. The decrease is caused by a corresponding decrease in the number of vacancies within the department when comparing the two years. 325,000 314,368 250,000 175,000 153,369 175,475 153,369 149,905 100,000 2014 2015 2016 2017 2018 The increase in costs of equipment were for items within the Police and Fire Departments that were authorized to be sent in 2017 but had purchase orders carryover to 2018. This is standard accounting procedure for the City and part of the accounting process. 2018 General Fund First Quarter Report – Page 5 Finally the increase in costs relating to Materials & Supplies totaled $556,272 at the end of the first quarter, which is 22.46% of the total budget for this fiscal year. That costs did increase by approximately $217,000 caused by the purchase of salt for winter storms and gas, repair and maintenance costs for the City vehicles. Part III – Conclusion 2018 2017 Difference Revenues 15,563,268 15,707,890 (144,622) Expenditures 19,253,035 17,762,147 1,490,888 Difference (3,689,767) (2,054,257) (1,635,510) The results of the first quarter of 2018 show a greater “deficit” than that of the three month total in 2017; however, the three month results of any fiscal year do not provide a good overall indication of how the City will end the fiscal year. Results are needed from six month totals of revenues and expenditures to begin to provide any indication on how the year will end in the General Fund. What the first quarter does provide is an indication of areas that the City will need to monitor closely such as health insurance and property tax collections. The City Comptroller’s Office, as it historically has, will continue to monitor these areas closely to obtain a clear understanding monthly on how these areas among others is trending for the year. If you have any questions regarding the information provided in this report please do not hesitate to contact me for answers. 2018 General Fund First Quarter Report – Page 6  Wm. Patrick Madden Andrew Piotrowski Mayor Deputy City Comptroller Monica Kurzejeski Office of the City Comptroller Deputy Mayor City Hall 433 River Street – Suite 5001 Troy, New York 12180-3406 Date: May 7, 2018 To: Honorable Wm. Patrick Madden City Council Members From: Andrew Piotrowski Deputy City Comptroller Re: First Quarter 2018 Financial Report – Sewer Fund Part I – Revenues Sewer Fund Revenues Revenue 03/31/2018 03/31/2017 $ Change % Change 2018 Actual 2018 Budget $ Diff % Achieved Sewer Rents 951,710 806,447 145,263 18.01% 951,710 4,650,000 (3,698,290) 20.47% Sewer Charges 140,147 39,587 100,560 254.03% 140,147 286,852 (146,705) 48.86% Use Of Money & Property 126 52 74 143.52% 126 500 (374) 25.27% Miscellaneous 6,803 4,633 2,170 46.85% 6,803 26,600 (19,797) 25.57% Total 1,098,786 850,718 248,068 29.16% 1,098,786 4,963,952 (3,865,166) 22.14% Revenues in the Sewer Fund totaled $1,098,786 at the end of the first quarter in 2018, which represents 20.47% of the budgeted total. In comparison the 2017 revenues totaled $850,718; therefore the revenues in 2018 have increased by 29.16%. The principal source of revenue in the Sewer Fund is charges to city residents based on consumption, which totaled $951,710 in the first three months of 2018. The sewer rate is based on a percentage of the city water rate and in 2017 this rate was increased from 85% to 100% in order to pay for costs related to the Combined Sewer Overflow (CSO) Project. The rate was passed mid-way through the 2017 fiscal year therefore the beginning months of 2017 were billed at 85% of the water rate and then after at the new rate. This is the cause of the increase in revenues from 2017 to 2018 as the current fiscal year has billed entirely at the rate of 100% of the city water rate. 2018 Sewer Fund First Quarter Report – Page 1  Part II – Expenditures Sewer Fund Expenditures Expenditure 03/31/2018 03/31/2017 $ Change % Change 2018 Actual 2018 Budget $ Rem % Expended Code 1 - Salaries Permanent Salaries 162,494 136,357 26,137 19.17% 162,494 813,258 650,764 19.98% Temporary Salaries 4,800 1,080 3,720 344.44% 4,800 32,500 27,700 14.77% Overtime 17,603 13,627 3,976 29.18% 17,603 90,000 72,397 19.56% Misc. Other 0 688 (688) -100.00% 0 17,500 17,500 0.00% Total Code 1 184,897 151,752 33,146 21.84% 184,897 953,258 768,361 19.40% Code 2 - Equipment 0 0 0 - 0 33,888 33,888 0.00% Code 3 - Materials & Supplies 17,375 17,899 (524) -2.93% 17,375 294,457 277,082 5.90% Code 4 - Contractual Services Utilities 1,834 1,755 79 4.53% 1,834 15,860 14,026 11.56% Repairs & Rentals 9,000 125 8,875 7100.00% 9,000 77,058 68,058 11.68% Insurance 15,094 15,083 10 0.07% 15,094 16,623 1,529 90.80% Consultant Services 1,077 960 117 12.17% 1,077 314,820 313,743 0.34% Training 0 0 0 - 0 10,000 10,000 0.00% Judgments & Claims 0 0 0 - 0 50,296 50,296 0.00% Uniforms 2,985 961 2,024 210.65% 2,985 8,500 5,515 35.11% Due To Other Funds 119,833 119,833 0 0.00% 119,833 479,332 359,499 25.00% Total Code 4 149,822 138,717 11,106 8.01% 149,822 972,489 822,666 15.41% Code 6/7 - Debt Service 0 0 0 - 0 74,763 74,763 0.00% Code 8 - Benefits Pension 40,159 45,303 (5,144) -11.35% 40,159 155,791 115,632 25.78% Healthcare 67,802 70,509 (2,707) -3.84% 67,802 286,981 219,179 23.63% Dental 3,514 4,206 (692) -16.44% 3,514 14,614 11,100 24.05% Social Security 13,678 11,273 2,405 21.33% 13,678 72,924 59,246 18.76% Worker's Compensation 13,319 7,637 5,682 74.41% 13,319 30,000 16,681 44.40% Total Code 8 138,472 138,927 (455) -0.33% 138,472 560,310 421,838 24.71% Code 9 - Interfund Transfers 0 0 0 - 0 2,142,863 2,142,863 0.00% Grand Total 490,567 447,295 43,273 9.67% 490,567 5,032,028 4,541,461 9.75% Expenditures in the Sewer Fund totaled $490,567 in the first quarter of 2018, an increase of $43,273 or 9.67% from that of 2017. When comparing the first quarter results to the overall Sewer Fund budget, 9.75% of the total expenditures have been recognized. When looking at the individual line items within the Sewer Fund the vast majority have not experienced a material increase or decrease in comparison to 2017. There was an increase in Permanent Salaries in the Sewer Fund which is primarily caused by the wage increase included in the settlement of the outstanding CSEA union contract. 2018 Sewer Fund First Quarter Report – Page 2 An increase in Repairs & Rentals was attributable to the rental of machinery to be used throughout the winter months in the department. The principal expenditure in the department is the annual transfer to the Capital Projects Fund for the Combined Sewer Overflow (CSO) Project. As discussed with the City Council this transfer will be recorded at the end of the 2018 fiscal year pursuant to the fund balance policy passed in March 2018. The amount of the transfer will be based on actual revenues and operating expenditures within the Sewer Fund. Part III – Conclusion 2018 2017 Difference Revenues 1,098,786 850,718 248,068 Expenditures 490,567 447,295 43,272 Difference 608,219 403,423 204,796 The Sewer Fund has a surplus of $608,219 as of March 31, 2018, an increase of $204,796 from 2017. The cause of this increase is attributable to the increase in sewer rents to city residents and the rate increase passed in 2017. It is important to note that the Sewer Fund will show a surplus throughout the fiscal year because the transfer to the Capital Projects Fund will not occur until the 2018 year-end reconciliation. If you have any questions regarding the information provided in this report please do not hesitate to contact me for answers. 2018 Sewer Fund First Quarter Report – Page 3  Wm. Patrick Madden Andrew Piotrowski Mayor Deputy City Comptroller Monica Kurzejeski Office of the City Comptroller Deputy Mayor City Hall 433 River Street – Suite 5001 Troy, New York 12180-3406 Date: May 7, 2018 To: Honorable Wm. Patrick Madden City Council Members From: Andrew Piotrowski Deputy City Comptroller Re: First Quarter 2018 Financial Report – Water Fund Part I – Revenues Water Fund Revenues Revenue 03/31/2018 03/31/2017 $ Change % Change 2018 Actual 2018 Budget $ Diff % Achieved City Water Sales 960,358 955,790 4,568 0.48% 960,358 4,650,000 (3,689,642) 20.65% Outside Community Water Sales 578,830 703,898 (125,068) -17.77% 578,830 7,587,000 (7,008,170) 7.63% Unmetered Sales 78,154 61,810 16,344 26.44% 78,154 275,000 (196,846) 28.42% Use Of Money & Property 90,220 80,175 10,045 12.53% 90,220 210,000 (119,780) 42.96% Permits 2,340 2,450 (110) -4.49% 2,340 12,000 (9,660) 19.50% Sale Of Property 3,700 1,438 2,262 100.00% 3,700 51,000 (47,300) 7.25% Miscellaneous 27,310 22,935 4,375 19.08% 27,310 91,000 (63,690) 30.01% Interfund Revenues 81,750 81,750 0 0.00% 81,750 327,000 (245,250) 25.00% Appropriated Fund Balance 0 0 0 - 0 1,495,000 (1,495,000) 0.00% Total 1,822,662 1,910,247 (87,585) -4.58% 1,822,662 14,698,000 (12,875,338) 12.40% Revenues in the Water Fund totaled $1,822,662 in the first quarter of 2018, representative of 12.40% of the 2018 budgeted total. In comparison to the 2017 first quarter results of $1,910,247, 2018 has decreased by 4.58% Water Fund revenues to city residents totaled $960,358 at the end of the first quarter in 2018, which is 20.65% of the budgeted total. In comparison to the three month total of 2017, the total is almost identical in each of the years. Revenue from outside communities decreased by 17.77% from 2017, with a three month total in 2018 of $578,830, or 7.63% of the total amount budgeted. The primary cause for the decrease is decreased 2018 Water Fund First Quarter Report – Page 1  consumption from year to year in one of the outside communities. The low percentage of budget recognized is caused by only two communities being billed in the first quarter. The majority of communities are billed twice per year, once in the second quarter and the second in the fourth quarter. The revenues budgeted from Appropriated Fund Balance are for the 2018 Water Fund Capital Plan. The revenue will be recorded as expenditures are incurred for the project. Part II - Expenditures Water Fund Expenditures Expenditure 03/31/2018 03/31/2017 $ Change % Change 2018 Actual 2018 Budget $ Rem % Expended Code 1 - Salaries Permanent Salaries 574,767 581,266 (6,499) -1.12% 574,767 3,019,034 2,444,267 19.04% Temporary Salaries 0 4,350 (4,350) 100.00% 0 62,500 62,500 0.00% Overtime 50,990 26,432 24,558 92.91% 50,990 205,500 154,510 24.81% Misc Other 1,104 3,227 (2,123) -65.78% 1,104 76,332 75,228 1.45% Total Code 1 626,862 615,276 11,586 1.88% 626,862 3,363,366 2,736,504 18.64% Code 2 - Equipment 2,810 4,947 (2,137) -43.20% 2,810 57,810 55,000 4.86% Code 3 - Materials & Supplies 213,956 207,569 6,387 3.08% 213,956 2,061,779 1,847,824 10.38% Code 4 - Contractual Services Utilities 104,248 86,240 18,008 20.88% 104,248 428,265 324,017 24.34% Postage 5,266 5,435 (169) -3.11% 5,266 31,500 26,234 16.72% Printing & Advertising 183 83 99 118.94% 183 7,000 6,817 2.61% Repairs & Rentals 9,924 9,699 225 2.32% 9,924 84,000 74,076 11.81% Insurance 60,375 60,333 42 0.07% 60,375 67,491 7,116 89.46% Dues 0 113 (113) -100.00% 0 6,000 6,000 0.00% Consultant Services 9,265 18,445 (9,181) -49.77% 9,265 101,042 91,777 9.17% Training 1,500 686 814 118.66% 1,500 14,600 13,100 10.27% Travel 0 0 0 - 0 2,250 2,250 0.00% Uniforms 7,437 4,265 3,171 74.36% 7,437 31,500 24,063 23.61% Misc Other 669,934 659,489 10,445 1.58% 669,934 4,517,575 3,847,641 14.83% Total Code 4 868,131 844,788 23,342 2.76% 868,131 5,291,223 4,423,092 16.41% Code 6/7 - Debt Service 91,683 92,669 (986) -1.06% 91,683 563,745 472,062 16.26% Code 8 - Benefits Pension 143,969 161,004 (17,034) -10.58% 143,969 558,503 414,534 25.78% Healthcare 231,851 215,881 15,970 7.40% 231,851 981,342 749,491 23.63% Dental 11,492 13,279 (1,787) -13.46% 11,492 47,791 36,299 24.05% Social Security 45,959 45,377 582 1.28% 45,959 257,298 211,339 17.86% Workers' Compensation 12,885 4,475 8,410 187.93% 12,885 28,000 15,115 46.02% Total Code 8 446,157 440,016 6,141 1.40% 446,157 1,872,934 1,426,777 23.82% Code 9 - Interfund Transfers 0 0 0 - 0 1,495,000 1,495,000 0.00% Grand Total 2,249,598 2,205,264 44,334 2.01% 2,249,598 14,705,857 12,456,259 15.30% 2018 Water Fund First Quarter Report – Page 2 First quarter 2018 expenditures in the Water Fund were $2,249,598, which is 15.30% of the 2018 budgeted total. In comparison to the first quarter of 2017, when the total was $2,205,264, the 2018 total has increased by $44,334 or 2.01%. In reviewing the expenditures and comparing the two from year to year there were not many material variances from 2017 to 2018. Given this is reflective of three months of the fiscal year developing trends on how expenditures will fare throughout the fiscal year is difficult. The results in the second quarter will allow for a better indication of how expenditures will forecast throughout the remainder of the fiscal year. It should be noted that is an increase of $24,558 in overtime within the Water Fund at the end of the first quarter. In reviewing this with the Superintendent of Public utilities, the increased is caused by repair work throughout the City for main breaks, specifically the break on Hoosick Street and related costs to repair in January 2018. Also throughout the first and second quarter there has been work done on the weekend to repair various items in high density travel areas. Pension costs have decreased when compared to 2017. The amount recorded to date is an approximation based on the 2018 budgeted totals for salaries throughout the General, Water and Sewer Funds. The actual expenditure will be recorded as part of the year-end reconciliation based on actual pension-eligible wages earned in the 2018 fiscal year. Part III – Conclusion 2018 2017 Difference Revenues 1,822,662 1,910,247 (87,585) Expenditures 2,249,598 2,205,264 44,334 Difference (426,936) (295,017) (131,919) As of March 31, 2018 the Water Fund has a three month deficit of $426,936; whereas in 2017 the deficit was $295,017. It is too early in the year however to have serious concerns regarding the final outcome of the 2018 fiscal year. Over fifty percent of the revenue generated in the Water Fund comes from outside communities, and as mentioned previously the majority of these are billed twice annually with the first bill occurring in the second quarter. Also billings historically have increased throughout the year given the summer months and increased in consumption in comparison to the first and second quarter where the winter months are being billed. If you have any questions regarding the information provided in this report please do not hesitate to contact me for answers. 2018 Water Fund First Quarter Report – Page 3  Ord#41 ORDINANCE AMENDING THE 2018 WATER FUND BUDGET The City of Troy, convened in City Council, ordains as follows: Section 1. The City of Troy 2018 budget is herein amended as set forth in Schedule A entitled: June 2018 Budget Amendments – Water Fund Emergency Declaration which is attached hereto and made a part hereof Section 2. This act will take effect immediately. Approved as to form May 31, 2018 James A. Caruso Esq., Corporation Counsel  Schedule A June 2018 Budget Amendments – Water Fund Emergency Declaration Original Change Revised Department Account No. Description Budget* (+/-) Budget Revenue Appropriated Fund Balance F.8300.8018.0000.0000 Appropriated Fund Balance 1,495,000.00 140,000.00 1,635,000.00 Expenditure DPU Transmission F.8330.0409.0091.0000 Consultant Services 0.00 140,000.00 140,000.00 Net Impact On General Fund 0.00 * Or as previously amended  Memo In Support This ordinance appropriates fund balance from the Water Fund to fund the costs to repair the water transmission line under Poestenkill Creek. The amount being appropriated is $140,000 which is a conservative estimate of what the total project costs will be. Currently the City has received an invoice for $118,050 to date. It is important to note though that only the amount needed for the repairs will actually be transferred and nothing further.  Ord# 46 ORDINANCE AUTHORIZING SETTLEMENT OF CLAIM, TO WIT: APOLLO DISMANTLING SERVICES, LLC, PLAINTIFF, vs. CITY OF TROY, DEFENDANT RENSSELAER COUNTY SUPREME COURT INDEX NO. 250629 The City of Troy, in City Council, convened, ordains as follows: Section 1. The above named plaintiff commenced an action in Rensselaer County Supreme Court against the City of Troy, alleging that the City breached a contract with the plaintiff for demolition of the Spring Avenue Bridge. The demolition project was authorized by and subject to the rules, regulations, and requirements of the New York State Department of Transportation, and identified by PIN 1756.37. Section 2. The Corporation Counsel is authorized to settle the above litigation in a manner that conforms in all material respects with and in the amount identified in the attached drafts of the Change Order and Release. The Corporation Counsel shall obtain a duly executed Stipulation of Discontinuance, Change Order, and Release in full satisfaction of the claim prior to payment. Section 3. The Comptroller is authorized and directed to make, issue, and countersign the required draft as outlined in the Change Order and Release, said sum to be payable out of the Project Expenditure Account after the Change Order is approved by the New York State Department of Transportation. Section 4. This Ordinance shall take effect immediately. Approved as to form, June 5, 2018 ___________________________________ James A. Caruso, Corporation Counsel  Ord# 46 MEMORANDUM IN SUPPORT Plaintiff and the City entered into a contract for demolition of the Spring Avenue Bridge in 2014. The original contract amount was $282,900. During the course of performance, the parties agreed to a $14,000 change increasing the amount to $296,900. The City has only paid Plaintiff a total of $124,700. The actual work of demolition was completed in or about August of 2014, and this lawsuit was filed approximately one year later. Plaintiff alleged that the City breached the demolition contract by failing to pay for items of work that were part of the original accepted bid, by not giving proper notice of the asbestos condition of the entire bridge surface, and by requiring material changes in the manner and method of demolition without issuing a change order for additional work allegedly required and performed, including such items as additional time, materials, air monitoring, safety requirements, and other handling and disposal expenses necessitated by the additional asbestos. Plaintiff ultimately claimed damages in the amount of $745,339.60, plus interest from the date of breach. Discovery and informal mediation have concluded. Settlement appears advisable as a practical business decision. Our own project engineers testified in depositions that Apollo performed work for which it had not been paid and that it was entitled to some undecided amount of additional compensation for extra work. Much of the dispute concerned documentation requirements and the proper method of calculating the value of the alleged additional work. If the case goes to trial, a finding of liability for some amount of the damages claimed seems extremely likely, plus almost four years of interest on that amount compounding at 9 % per year. Settlement controls the liability. Under the terms of the proposed Settlement as embodied in the Change Order, Release, and Stipulation of Discontinuance, this action will be dismissed and the revised project amount will be $417,367.00. The litigation is being settled for $120,467 more than the $296,900 previously agreed. The City shall receive credit for the prior payment, and upon approval of the Change Order by the New York State Department of Transportation (“NYSDOT”), shall pay an additional $292,667 in full satisfaction of the contract and all of Plaintiff’s claims. There will be no interest and no admission of liability or fault on the part of the City. Additionally, each party will be responsible for its own costs and attorney’s fees. The case will be discontinued in its entirety with prejudice and the City and its employees will be released from all further liability. This project involves federal monies and remains subject to the rules, regulations, and requirements of NYSDOT. Under the applicable state and federal rules, the amounts expended by the City are reimbursable from 80% up to a maximum of 95%. The City’s project engineer, Greenman-Pedersen, Inc. (“GPI”), has received and assembled the necessary supporting documentation and has drafted the Change Order so that the City will be eligible for the highest percentage reimbursement for the amount expended to settle this case. The reimbursement for the Settlement/Change Order ranges from $234,133.60 at 80% to $278,033.65 at 95%. The Comptroller will of course seek the greatest reimbursement possible. GPI has ascertained that there are sufficient funds in the project account to cover a maximum 95% reimbursement, but NYSDOT will determine the final percentage.  Ord# 46 The recommendation to settle is strictly a business decision taken in full consideration of the available defenses to the claim and to avoid the potential for a significantly higher award of damages plus substantial interest, as well as the expenditures of further litigation and trial. Plaintiff understands that the proposed settlement is conditioned upon approval of both the City Council and the Mayor, as well as upon approval of the Change Order by NYSDOT. If the Council approves the Settlement, the Mayor will execute the Change Order. GPI will then attach the supporting documentation, execute the Change Order, and submit it to NYSDOT for final approval. If the Change Order is approved by NYSDOT, the City will pay the Settlement and be reimbursed. If the Change Order is not approved by NYSDOT, then this case will be returned to the trial calendar.  RES # 68 RESOLUTION APPROVING THE MAYOR’S EXECUTION OF A MEMORANDUM OF AGREEMENT WITH THE TROY PBA AND OFFICERS PERFETTI, MCMAHON, DAVIS AND KEHRER WHEREAS, on May 24, 2018 the Mayor signed a Memorandum of Agreement with the Troy PBA and Troy Police Officers Louis Perfetti, Sean McMahon, Ryan Davis and Greg Kehrer ; and BE IT RESOLVED, that the City Council of the City of Troy hereby approves the attached Memorandum of Agreement executed by Mayor Patrick Madden on May 24, 2018. Approved as to form, June 4, 2018 ________________________________________ James A. Caruso, Esq., Corporation Counsel  MEMO The PBA filed an improper practice charge with the New York State Public Employment Relations Board under case U-35803 (hereafter “Charge") alleging that the City violated the Taylor Law. The City and PBA, without prejudice to each other's positions in the future on this issue, and to avoid the expense and burden of further anticipated litigation, have agreed to settle the Charge. This Agreement shall not constitute a precedent of any kind in favor or against any party hereto, shall not be deemed a past policy and practice, and shall be limited to the unique circumstances presented by this particular situation. The City shall have no financial obligation to any individuals other than Perfetti, McMahon, Davis, and Kehrer by virtue of this Agreement.