FULTON — The city of Fulton has spent down its “rainy day” funds to “dangerously low” levels, leaving city officials little cushion to manage unforeseen expenses.
That’s according to an audit that New York State Comptroller Thomas DiNapoli released today.
DiNapoli’s fiscal-stress monitoring system earlier this year identified Fulton as one of nine communities in “moderate stress,” his office said in a news release.
(Sponsored)
Insurance Rates: What is really going on with these premiums and why they seem to be increasing!
This is a question we continuously get asked at CH Insurance. Clients with a good loss history, timely payments, excellent credit, and very good policies and procedures. All across the
How Technology Management Can Expedite Your Business Growth
Many business leaders find themselves asking the same question: “How do I foster growth for my company?” The answer typically yields many paths and variables both controllable and uncontrollable. Technology
DiNapoli’s auditors found the Fulton City Council generally adopted “realistic” budgets between 2010 through 2012. However, the city routinely used its fund balance as a financing source, which drastically reduced the unexpended surplus funds.
Fulton’s unexpended surplus funds declined 84 percent during the three-year period, falling from more than $841,000 in 2010 to more than $136,000 at the end of 2012.
The city of Fulton no longer has a fund balance available as a financing source in its 2014 budget because because the city has nearly spent all of its surplus funds, the DiNapoli audit found.
Fulton city lawmakers have implemented a number of cost-saving measures as they work to relieve the city’s “fiscal stress,” according to DiNapoli’s office.
For example, the city has reduced its employee count through attrition. As a result, the total number of city employees fell 10 percent from 159 in 2010 to 143 in 2013, the state comptroller said.
The city has also reduced costs in areas such as ambulance services, landscaping, rehabilitation and support to the local library, resulting in total savings of more than $800,000 during this period.
Fulton has also requested that the state’s Financial Restructuring Board for Local Governments conduct a “comprehensive review” of its finances, one of the first municipalities in New York to do so, DiNapoli’s office said.
DiNapoli has recommended officials reduce the city’s reliance on fund balance as a financing source and continue to evaluate and explore ways to cut costs and increase revenues.
He also suggested the city council adopt a policy outlining the “reasonable amounts” of unexpended surplus funds that the Fulton should maintain.
Contact Reinhardt at ereinhardt@cnybj.com
