NEWBURGH – The state comptroller’s
office has given its okay to the proposed 2018 Newburgh City budget.
City council members continue to review the $38.7 million spending plan
as proposed by City Manager Michael Ciaravino.
The city is authorized to issue debt not to exceed $15 million to liquidate
the accumulated deficit in the general fund as of December 31, 2010.
State law requires municipalities that have been authorized to issue obligations
to fund operating deficits to submit their proposed budgets for the next
fiscal year to the state comptroller for review while the deficit obligations
are outstanding.
The audit said the significant revenue and expenditure projections are
reasonable. The report said the city faces potential increased salary
costs when one of its expired collective bargaining agreements is settled.
It found that the city continues to budget minimal amounts for contingencies,
which provides limited flexibility to address revenue shortfalls or unforeseen
expenditures. The city’s proposed budget complies with the tax levy
limit, the audit said.
The comptroller’s recommendations include that city officials should
consider the potential financial impact of the settlement of collective
bargaining agreements and they should review the adequacy of contingency
appropriations.
City lawmakers will meet again on Monday evening to go over the spending
plan. At the last review session on Thursday night, some members balked
at a provision in Ciaravino’s budget that would not provide paid
health insurance coverage for new council members until after they serve
eight years – two terms. If that is removed and new council members
can receive insurance immediately upon taking office, it could cost the
city as much as another $100,000 and city Comptroller Katie Mack warned
members that amount would have to be cut from some other line in the budget.
