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 tonight 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.
