1. Budget Presentation 2010 Budget Presentation 2010 Tuesday, October 13 Common Council Presentations

2. Budget 2010 General Fund Revenues  Decreasing in sales tax revenues  Decreasing in sales tax revenues  Decreasing Gross Receipts Utility Tax  Decreasing Gross Receipts Utility Tax  Decreasing Mortgage Tax Revenue  Decreasing Mortgage Tax Revenue No increase in State Aid expected No increase in State Aid expected

3. Budget 2010 General Fund Expenses  Increase in Retirement Expenses $436,295 which equates to a 6.70% tax increase  Increase in Retirement Expenses $436,295 which equates to a 6.70% tax increase  Increase in Healthcare Costs $236,360 in July 2010 which equates to a 3.70% tax increase  Increase in Healthcare Costs $236,360 in July 2010 which equates to a 3.70% tax increase Reduction of City Workforce Reduction of City Workforce 5 DPW 5 DPW 2 Fire Fighters 2 Fire Fighters 1 Dispatcher 1 Dispatcher  Decrease in Overtime Expenses for City Workforce  Decrease in Overtime Expenses for City Workforce No Raises for Elected Officials No Raises for Elected Officials Energy Savings Measures Energy Savings Measures

4. Budget 2010 Energy Savings Measures

5. Budget 2010 Retirement Expenses

6. Retirement Expense Formula Police / Fire Retirement Expense Police / Fire Retirement Expense 2009 Budget 2009 Budget $40,000 salary X 14.7% retirement rate = $5,880 $40,000 salary X 14.7% retirement rate = $5,880 2010 Budget 2010 Budget $40,000 salary X 16.8% retirement rate = $6,720 $40,000 salary X 16.8% retirement rate = $6,720 ERS Retirement Expense ERS Retirement Expense 2009 Budget 2009 Budget $40,000 salary X 7.0% retirement rate = $2,800 $40,000 salary X 7.0% retirement rate = $2,800 2010 Budget 2010 Budget $40,000 salary X 11.2% retirement rate = $4,480 $40,000 salary X 11.2% retirement rate = $4,480

7. 2010 Budget Challenges

9. Budget 2010 General Fund 3.85 % Tax Rate Increase 3.85 % Tax Rate Increase Average home ($80,000 assessed) increase of $51.20 in City Taxes (Tax Rate 16.52  17.18) Average home ($80,000 assessed) increase of $51.20 in City Taxes (Tax Rate 16.52  17.18)  Decrease of 8.5 FTE Positions in General Fund Budget  Decrease of 8.5 FTE Positions in General Fund Budget

10. Budget 2010 Water Fund Cost Drivers  Decreasing water use  Decreasing water use  Increased chemical cost  Increased chemical cost Dept. of Health and EPA mandates Dept. of Health and EPA mandates Debt Service Debt Service

11. Budget 2010 Decreasing Fund Balance – Water Fund

12. Budget 2010 Sewer Fund Cost Drivers Albany County Sewer District charges Albany County Sewer District charges MS4 mandates MS4 mandates Long Control Plan study - $100,000 Long Control Plan study - $100,000 Pump Station Improvements Pump Station Improvements

13. Albany County Sewer District Charges

14. Budget 2010 Decreasing Fund Balance – Sewer Fund

15. Budget 2010 New Water/Sewer Rate Structure Introduction of Flat Fee/Parcel Based on Service Size Introduction of Flat Fee/Parcel Based on Service Size Residential $15/qtr Line size <1” Residential $15/qtr Line size <1” Commercial $30/qtr Line size (1”-3”) Commercial $30/qtr Line size (1”-3”) Industrial $45/qtr Line size >3” Industrial $45/qtr Line size >3” Reduction of consumption rate ($3.66/Kgal to $3.50/Kgal) Reduction of consumption rate ($3.66/Kgal to $3.50/Kgal) Removal of Minimum Usage Threshold Removal of Minimum Usage Threshold

16. Rate Change Impacts 20092010 5,000 gal/qtr$42.3832.50 10,000 gal/qtr$42.3850.00 16,000 gal/qtr*$58.56$71.00 Average user will see an increase of $12.45/qtr in water and sewer bills. Average user will see an increase of $12.45/qtr in water and sewer bills. Schedule provides predictability of funding for respective funds Schedule provides predictability of funding for respective funds Allows for recognition that expenses in this fund are mostly mandate driven and not attributable to personnel costs Allows for recognition that expenses in this fund are mostly mandate driven and not attributable to personnel costs Continues to promote water and energy conservation principles by continuing consumption values Continues to promote water and energy conservation principles by continuing consumption values Sewer Fund – acknowledges that 50-75% of ACDS flows are due to storm water or ground water infiltration. Sewer Fund – acknowledges that 50-75% of ACDS flows are due to storm water or ground water infiltration.

17. 2010 Overall Budget Compared to 2009 Adjusted Budget Total Budget is $21,620,141 overall Funds Total Budget is $21,620,141 overall Funds General Fund $17,316,218 Water Fund $1,839,233 Sewer Fund $1,993,905  Decrease in expenses of $470,785 or  2.20%  Decrease in expenses of $470,785 or  2.20% General Fund $262,503 or  1.50% Water Fund $83,428 or  4.30% Sewer Fund $124,854 or  5.90%

18. Budget Conclusions There are obstacles to overcome There are obstacles to overcome Projections are conservative Projections are conservative Continued concern of impact on the taxpayers vs. the cost to provide services with an eye towards the current and future financial condition of the City. Continued concern of impact on the taxpayers vs. the cost to provide services with an eye towards the current and future financial condition of the City. The budget process is an ongoing process and this is just the start. The budget process is an ongoing process and this is just the start.

19. 2010 Budget Schedule Common Council Public Hearing Tuesday Oct. 27 th – Public hearing Tuesday Nov. 10 th – Budget Vote All meetings start at 7pm in the Common Council Chambers Council will also schedule multiple budget workshops

20. Budget Meetings Tuesday, Oct. 20 th at 7 p.m. Where: Lansing Street Neighborhood Watch Thursday, Oct. 22 nd at 7 p.m. Where: Cohoes Middle School Thursday, Nov. 5 th at 7 p.m. Where: Van Schaick Island School

21. Q & A