7/28/2019 2011 Audit Key Findings.doc

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7/28/2019 2011 Audit Key Findings.doc

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Office of Mayor Matt Ryan Contact: Kyle Seeley

City of Binghamton, NY (607) 772-7001

The sale of the hotel has since been finalized. What was once a nearly $7million liability is now a privately-owned Hilton luxury hotel, and the city and HUD are near final terms over a five-year repayment plan for theremaining debt (less than $1 million). The debt will be paid entirely out of the city's CDBG grant, and notrequire 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, waterlines, properties, building, ect.). This enhanced inventory of city assets was made possible by smart IT reformsmade in 2009, in which upgrading to Cartegraph, an enterprise software, now allows for more effectivemanagement 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, thecity's sewer fund. The sewer fund ran a deficit of $1.3 Million in 2011, due to the floods (Page 3f), costly capitalprojects at the plant, and users relying on more efficient technologies and water saving practices. Since rateshaven't been increased since 2009, the administration is currently analyzing necessary increases in sewer ratesover the next few years, to avoid dramatic jumps in rates as seenregionallyandnationally. FEMAreimbursements and any potential legal settlements stemming from the wall collapse will eventually improvethe fund balance.

Despite unprecedented levels of private investment in downtown and other positive indicators, cityfinances are still negatively impacted by an aging housing stock, high levels of unemployment, lowhomeownership rates, and a growing number of residents living in poverty or just above poverty. That's why foreight years, the administration's policies have focused not just on economic and fiscal health, but also advancingsocial health and community well-being.

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