Sunday Special: Council's Finance Committee to Hold 2024 Budget Meeting Wednesday Evening
The City Administration rolls out their funding plan for the upcoming year
The Finance Committee of Troy City Council is poised to convene an exclusive committee hearing Wednesday evening, deliberating on the city's fiscal blueprint for 2024. This crucial gathering is scheduled to take place within the confines of the Basement level Conference Room at City Hall. For those keen on delving into the specifics of the budget or seeking additional information about the meeting, resources are readily accessible here.
Under the mandates of state legislation, the city is obligated to finalize its budget by the dawn of the new year. Furthermore, the budget must adhere to a balanced framework, ensuring that the city's expenditures do not surpass its available financial resources - a requirement that contrasts with the federal government's fiscal operations. The formulation of the budget stands as perhaps the most consequential legislative act the city council undertakes. It serves as a mirror, reflecting the city's core priorities through its allocation of funds. Understanding the intricacies of the budget can offer profound insights into the operational ethos and priorities of our local government.
Setting the Stage
In the annual budget message, Patrick Titterington, the city’s top bureaucrat provided the following statement:
It’s important to recognize that the current inflationary economy and threats of a potential recession are still very real. As a result, the 2024 recommendation budget is primarily a continuation of the Mayor and City Council’s three major goals: economic development, safety and quality of life. The national policy directive decisions regarding infusing trillions of dollars in the U.S. economy while disincentivizing the return to work has caused severe inflation In the prices of the common ‘basket of goods” (transportation, food, utilities, etc.). That has again affected our bidding experience in 2023 and we anticipate further upward trends in contracting and construction services. We are reasonably confident we have included enough increases in 2024 to maintain services at the levels our residents and business expect.
Some of the specific items that budget message pointed out to be completed in 2024 include:
The hiring of a new civilian (non-uniformed) police department employee for administrative work.
Resurfacing sections of West Market Street, Elm Street and South Stanfield Road,
Repairing surfaces to the Adams Street and East Main Street bridges.
Renovation of pickleball and tennis courts.
Design work at the Troy Aquatic Park
The General Fund's Role in City Budgeting
Central to our city's discretionary spending is the General Fund. This fund is distinct from enterprise funds in that it relies entirely on tax revenues and specialized grants. It finances essential city services not covered by rate-based utilities, such as water and sewer.
For the fiscal year 2024, the General Fund boasts a remarkable carryover of $33.82 million. Additionally, the city anticipates generating approximately $39 million in revenue, primarily through income tax. However, this figure falls short of the initial forecast of nearly $42 million projected in last year's budget.
In total, the city's General Fund will have $76 million at its disposal for 2024, with estimated expenditures pegged at $41.41 million. Looking ahead to 2025, the projected General Fund carryover stands at $34.59 million, marking a 2.2% increase over the 2024 figure.
Steady Support for External Agencies
Despite the inevitable impact of inflation that the City outlined above, financial support to three external organizations funded by the city remains unchanged for 2024. The Troy Development Council is set to receive $140,000, Troy Main Street $60,000, and the Troy Rec $29,000.
This briefing offers just a glimpse into the comprehensive 130-page budget document. It aims to provide the public with a clearer understanding of the city's fiscal planning.
For those deeply interested in these matters, you are strongly encouraged to attend the upcoming Finance Committee meeting on Wednesday. We also welcome your comments and questions, which you can share in the comment section below.
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Could the City’s top bureaucrat introduce the budget without repeating misleading, half-truth characterizations of the current economic conditions? The inflationary environment post-COVID was certainly impacted by spending at the federal level, but also, in no small amount, mind you, by supply chain disruptions, excess cash flow for workers due to lower expenditures on vacations, eating out, etc., resettling of inflationary norms following a virtually zero inflation environment post Great Recession, and corporate profiteering (this was not a small piece, as companies admitted in their earnings reports of that timeframe). Also, the tired and untrue trope about government disincentivizing returning to work is nothing more than opinion-based political posturing. I’m happy to get into why this statement doesn’t make sense or line up with fact, but this doesn’t seem to be the place. In my opinion, neither comment has any place in a public budget summary as it serves no purpose other than to advertise the political beliefs of the individual who wrote it.