Purpose of Audit

The purpose of our budget review was to determine whether the significant revenue and expenditure projections in the City’s tentative budget for the 2014-15 fiscal year are reasonable.

Background

The City of Yonkers is authorized to issue debt totaling $45 million to liquidate the current deficits in the City School District’s general fund as of June 30, 2014. Chapter 55 of the Laws of 2014 requires the City to submit their proposed budgets for the next fiscal year to the State Comptroller and the Commissioner of Education for review while the deficit obligations are outstanding.

Key Findings

• Revenue estimates for sales tax, City income tax surcharge, metered water and sewer rents may not be achievable.
• The budget does not include an appropriation for textbooks and the appropriations for employee pension costs, tax certiorari settlements and firefighter overtime may not be adequate.
• The City continues to rely on fund balance for recurring expenditures.
• The City’s proposed budget does not include an appropriation for contingencies.

Key Recommendations

• Review the revenue estimates for sales tax, City income tax surcharge, metered water and sewer rents and amend as necessary.
• Assess the sufficiency of appropriations for textbooks, employee pension costs, tax certiorari settlements and firefighter overtime.
• Develop a plan to maintain fund balance at a reasonable level.
• Consider establishing and funding a contingency fund.