Office of Mayor Matt Ryan City of Binghamton, NY

Contact: Kyle Seeley (607) 772-7001

2011 Audit Key Findings

1. A DRAMATIC TURNAROUND: The 2011 Audit confirms what the administration has been saying for some years now: despite inheriting a nearly depleted rainy day fund, and enduring a national economic collapse and a string of floods, the Ryan Administration has dramatically turned around city finances. Through eight years of responsible governance and bold reforms, the city's rainy day fund (general fund reserve) ended the 2011 calendar year well over $6 million, a 2698% increase over the balance at the end of former Mayor Bucci's term. Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Unassigned Fund Balance $ 4,880,376.00 $ 3,576,638.00 $ 3,258,524.00 $ 3,796,819.00 $ 1,018,995.00 $ 219,256.00 $ 1,166,862.00 $ 262,917.00 $ 653,021.00 $ 1,274,362.00 $ 4,449,874.00 $ 6,134,853.00 % Increase Since EOY 2005: 2698%

The increase in the General Fund was primary due to significant restraints on spending for employee benefits; expenditures were $3,575,175 less than appropriations. -Page 3f 2. MORE GOOD NEWS TO COME: The audit does suggest challenges in some of the enterprise funds, however, actions taken since the end of 2011 have accelerated the positive turnaround of city finances. For example: 1. The Golf fund deficit was completely paid off in the 2012 budget and the fund eliminated. Now, the Ely Park Golf Course, still publicly owned but under private management, actually generates revenue for the general fund. 2. The Sanitation Fund is trending upwards because the smart recommendations from the 2010 Commission on Sanitation Report were fully implemented by the start of 2012, resulting in lower expenses and higher revenue streams. Also, the new contract signed this year, in which a local vendor is purchasing the city's recycled waste, will boost revenues and reduce tipping fees at the county landfill. 3. The Section 8 Housing Program was fully consolidated to Binghamton Housing Authority effective January 1, 2012. 3. REGENCY HOTEL: FROM LIABILITY TO ASSET:

Office of Mayor Matt Ryan City of Binghamton, NY

Contact: Kyle Seeley (607) 772-7001

The sale of the hotel has since been finalized. What was once a nearly $7million liability is now a privatelyowned Hilton luxury hotel, and the city and HUD are near final terms over a five-year repayment plan for the remaining debt (less than $1 million). The debt will be paid entirely out of the city's CDBG grant, and not require any local tax dollars. (Page 3f) 4. DEBT RESTRUCTURING: The City took advantage of lower financing costs and refinanced debt in 2012, which will save $780,000 over the next 14 years. 5. ASSET MANAGEMENT: For the first time in 12 years, the City has enhanced its inventory of city assets (roads, bridges, water lines, properties, building, ect.). This enhanced inventory of city assets was made possible by smart IT reforms made in 2009, in which upgrading to Cartegraph, an enterprise software, now allows for more effective management of and investment in critical infrastructure assets. 6. NEGATIVE TRENDS: The audit highlights how the floods have impacted the joint-sewage treatment plant, and in turn, the city's sewer fund. The sewer fund ran a deficit of $1.3 Million in 2011, due to the floods (Page 3f), costly capital projects at the plant, and users relying on more efficient technologies and water saving practices. Since rates haven't been increased since 2009, the administration is currently analyzing necessary increases in sewer rates over the next few years, to avoid dramatic jumps in rates as seen regionally and nationally. FEMA reimbursements and any potential legal settlements stemming from the wall collapse will eventually improve the fund balance. Despite unprecedented levels of private investment in downtown and other positive indicators, city finances are still negatively impacted by an aging housing stock, high levels of unemployment, low homeownership rates, and a growing number of residents living in poverty or just above poverty. That's why for eight years, the administration's policies have focused not just on economic and fiscal health, but also advancing social health and community well-being.

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