Purpose of Audit

The purpose of our audit was to review the City’s financial condition for the period January 1, 2012 through May 31, 2015.

Background

The City of Troy is located in Rensselaer County and has approximately 50,130 residents. The City is governed by an elected nine-member City Council. Budgeted appropriations for 2015 totaled approximately $83.1 million.

Key Findings

• Adopted budget for the general fund relied on appropriating significant amounts of reserves to finance operations, and budgets for the water and sewer funds contained unrealistic revenue estimates.
• If retirement costs remain at 2015 levels, the 2016 budget must include an increase of approximately $1.9 in retirement appropriations, an amount which represents 10 percent of the 2015 tax levy.
• The Council and City officials have not developed a multiyear financial plan or a comprehensive capital plan in accordance with the City’s Charter.
• The City Comptroller failed to maintain individual accounting records for each capital project.

Key Recommendations

• Develop and adopt general, water and sewer fund budgets that include realistic estimates for revenues and expenditures and that are structurally balanced.
• Develop a plan to fund the increase in 2016 retirement appropriations.
• Develop a comprehensive financial plan and a capital plan that includes all elements required by the Charter and frequently monitor and update the plans.
• Maintain individual accounting records for all projects.