Status of the Council's Sixteen Recommendations 1) Revenue estimates from the sale of any real property exceeding $100,000 be based on a signed contract with a closing date in 2017. Response: This is consistent with my method of budgeting, i reflected in my budget proposal, and is confirmed by OSC’s budget review. There are no revenues from the sale of real property included in the budget proposal. 2) Revenue estimates from franchise tax fees must be based on signed contracts. Response: This is consistent with my method of budgeting and is reflected in my budget proposal. Revenue estimates are based on signed contracts and 5 year trends 3) Revenue estimates from sales tax must be based on conservative and realistic analysis pursuant to existing agreement with Rensselaer County. Response: This is consistent with my method of budgeting, is reflected in my budget proposal, and is confirmed by OSC’s budget review. Revenue estimates are based on projections provided by Rensselaer County. 4) All current fees for permits and other related matters should be reviewed and updated. Response: A series of fees were reviewed and recommendations were made to the City Council for increases, The Council Finance Committee approved the recommended changes. The full council will vote on these changes in ‘November. 5) A public safety fee for private colleges should be negotiated based upon police and fire services provided. Response: The City has no legal authority to impose such fees on qualified not-for-profit institutions. Any such ‘arrangement would need to be voluntary on the part of the colleges. Some years ago a number of these institutions formed the Troy Redevelopment Foundation through which voluntary payments are made to the City of Troy. We continue to have conversations with these entities. 6) Overtime and consultants should be reduced by ten percent from the current fiscal year. Response: Blanket cuts without regard for what is included in and what constraints we have on those expenditures have in the past contributed to today's financial problems. It is best to look at each of those items and determine if it can be cut and what impact that has on operations. We have done that analysis and made ‘cuts in those instances where itis possible to cut. 7) Accost savings plan should be developed by sharing services with Rensselaer county and Hudson Valley Community College (HVC). Response: We have had several conversations with the County about shared services. None have gelled sufficiently to include figures in the 2017 budget. This work is ongoing. Realistically, because both operations are so lean, itis not anticipated that there are significant savings to be realized immediately. The gains will come in more efficiency and better service to our residents. '8) A cost revenue analysis should be done to determine whether the City should consider leasing out the golf operations at the Frear Park Golf Course. Response: We have provided those figures to the Council but until itis thoroughly considered, @ number of significant issues are resolved, and the potential market revenue determined, it is too speculative to include in the 2017 budget.9) Do a cost-benefit analysis for the city run ambulance service. Response: We have done the analysis; this service has consistently generated net revenue for the City. 10) Expenditures for future pension costs should be based on realistic estimates provided by the NYS Comptroller each year. Response: This is consistent with my method of budgeting, is reflected in my budget proposal, and is confirmed by OSC’s budget review. Expenditure estimates are based on the figures provided us by the State. The Office of ‘State Comptroller has reviewed our methodology and finds it sound. 11) A realistic multi-year capital plan should be developed for 2017 and periodically updated. Response: This is consistent with my method of budgeting and is reflected in my budget proposal. The Capital lan included in the budget submission includes minimal funding. 12) A reserve fund should be established for future Combined Sewer Overflow (CSO) expenditures, Response: This s consistent with my method of budgeting, continues the funding started in 2015 and 2016, ando proposal has been made to the City Council increasing the sewer rate to more appropriately fund the costs of this project. 13) A reasonable allocation for contingencies should be included in the 2017 budget (Per NYS Comptroller's formula). Response: This s consistent with my method of budgeting and uses the OSC recommended formula. While OSC might prefer a more robust contingency, a modest contingency has been included in my budget proposal to avoid ‘adding to the tax rate increase. 14) A cost savings hiring freeze for the first six months of 2017, which should be implemented and reevaluated. The Mayor may certify to the council that a particular position is essential and needs to be filled within that six month period. Response: We hove already demonstrated that we de nat fill positions that are not essential. We have effectively had hiring freeze for the past ten manths and we will maintain that practice moving forward. 15) All non-reimbursable expenses in each and every City Department should be cut five percent, Response: Blanket cuts without regard for how services are impacted will result in necessary overspending in support of current City sevice levels. This practice has contributed tothe predicament we find ourselves in. itis {ar better to analyze individual expenditures. 16) Perform a cost benefit analysis for City run entities that generate significant revenue. Response: Beyond the ambulance service, ice rinks, and the golf course there are no City entities that generate significant net surplus. November 3, 2016