City Council

TROY CITY COUNCIL FINANCE MEETING AGENDA July 6th, 2023 6:30 P.M. Pledge of Allegiance Roll Call Presentation of Agenda Public Forum ORDINANCES 50. Ordinance Amending The 2023 General Fund And Debt Service Fund Budgets (Council President Mantello) (At The Request Of The Administration) 1  ORD50 ORDINANCE AMENDING THE 2023 GENERAL FUND AND DEBT SERVICE FUND BUDGETS The City of Troy, convened in City Council, ordains as follows: Section 1. The City of Troy 2023 budget is herein amended as set forth in Schedule A entitled: 2023 Budget Amendment(s) – Bank Interest which is attached hereto and made a part hereof. Section 2. This Ordinance shall take effect immediately. Approved as to form, ____________________, 2023 Richard T. Morrissey, Corporation Counsel  ORD50 WM. Patrick Madden Andrew Piotrowski Mayor City Comptroller Chris Nolin Deputy Mayor Office of the Comptroller City Hall 433 River Street Troy, New York 12180 Date: June 28, 2023 To: Troy City Council From: Andrew Piotrowski, City Comptroller Re: 2023 Budget Amendment(s) – Bank Interest As a result of rising interest rates and active management of our accounts, Pioneer Commercial Bank (“Pioneer”) has raised the interest rate on the City’s money market accounts. In addition to this, Pioneer allows the City to elect three (3) accounts that earn a higher interest rate than the other money market accounts, which have been determined to be the largest non-arbitrage eligible accounts. As a result, interest in the General Fund has already greatly exceeded the budgeted estimate in 2023 with more earnings anticipated. This amendment increases the interest revenue estimate by $440,000, bringing the total estimated revenue in 2023 to $500,000. As this revenue is considered to be “one-time,” given the volatility we have seen in interest rates and the income being generated from one-time monies, the amendment would increase the appropriation for the principal payment of bond anticipation notes. The principal payments would be made on the bond anticipation notes due July 28, 2023.  Schedule A ORD50 2022 Budget Amendment(s) – Bank Interest Original Change Revised Department Account No. Description Budget* (+/-) Budget General Fund Revenues General Government Support A.1000.2401.0000.0000 Interest 60,000.00 440,000.00 500,000.00 Total General Fund Budget Expenditure Increase 440,000.00 Expenditures Interfund Transfers A.9950.0998.0000.0000 Debt Service Fund 6,103,061.00 440,000.00 6,543,061.00 Total General Fund Budget Expenditure Increase 440,000.00 Net Impact On General Fund 0.00 Debt Service Fund Revenues Interfund Revenues V.0000.5031.1000.0000 General Fund 6,103,061.00 440,000.00 6,543,061.00 Total Debt Service Fund Budget Expenditure Increase 440,000.00 Expenditures Bond Anticipation Notes V.9730.0600.0000.0000 Principal 3,861,000.00 440,000.00 4,301,000.00 Total Debt Service Fund Budget Expenditure Increase 440,000.00 Net Impact On Debt Service Fund 0.00 * Or as previously amended