Wm.

Patrick Madden Andrew Piotrowski

Mayor Deputy City Comptroller

Monica Kurzejeski Office of the City Comptroller

Deputy Mayor
City Hall
433 River Street Suite 5001
Troy, New York 12180-3406

Date: April 6, 2017

To: Honorable Wm. Patrick Madden

City Council Members

From: Andrew Piotrowski

Deputy City Comptroller

Re: Fourth Quarter 2016 Quarterly Financial Report General Fund

Introduction

Please find enclosed the preliminary revenues and expenditures for the City of Troys 2016 fiscal year in
the General Fund. Please consider the enclosed results to be preliminary as these are unaudited and the
Citys Annual Update Document (AUD) has yet to be filed. However, the City Comptrollers Office
believes that there will be no material changes prior to the AUD being filed at the end of April 2017.

Based on the total revenues and expenditures, the Citys General Fund had a surplus for the 2016 fiscal
year. This report will provide an overview of the revenues and expenditures by type along with an
analysis on the important items for the 2016 fiscal year.

All questions pertaining to the information provided in this report will be answered at the Finance
Committee Meeting on April 19, 2017.

General Fund 2016 4th Quarter Report Page 1

 Revenues

General Fund Revenues

Revenue 12/31/2016 12/31/2015 $ Change % Change 2016 Actual 2016 Budget $ Diff % Achieved
Real Property Taxes 21,469,686 19,940,129 1,529,558 7.67% 21,469,686 20,582,598 887,088 104.31%
Local Sources 18,740,226 18,694,308 45,918 0.25% 18,740,226 19,261,000 (520,774) 97.30%
General Government Support 381,766 336,973 44,793 13.29% 381,766 326,982 54,784 116.75%
Public Safety 488,665 367,777 120,889 32.87% 488,665 472,000 16,665 103.53%
Health 2,257,589 1,988,832 268,757 13.51% 2,257,589 1,775,000 482,589 127.19%
Transportation 659,478 657,399 2,079 0.32% 659,478 690,000 (30,522) 95.58%
Recreation 1,260,155 1,285,308 (25,152) -1.96% 1,260,155 1,413,000 (152,845) 89.18%
Home & Community Services 578,366 592,567 (14,200) -2.40% 578,366 550,000 28,366 105.16%
Intergovernmental Charges 244,571 326,371 (81,800) -25.06% 244,571 263,830 (19,259) 92.70%
Use Of Money & Property 72,533 46,394 26,139 56.34% 72,533 55,000 17,533 131.88%
Licenses & Permits 945,121 731,268 213,853 29.24% 945,121 616,000 329,121 153.43%
Fines & Forfeitures 1,461,078 1,194,874 266,205 22.28% 1,461,078 1,228,500 232,578 118.93%
Sale Of Property & Compensation For Loss 118,155 35,067 83,088 236.94% 118,155 1,190,000 (1,071,845) 9.93%
Miscellaneous 1,784,649 1,384,119 400,529 28.94% 1,784,649 1,393,500 391,149 128.07%
Interfund Revenues 1,591,349 1,575,773 15,576 0.99% 1,591,349 1,771,418 (180,069) 89.83%
State Aid 13,765,083 13,591,390 173,692 1.28% 13,765,083 13,855,555 (90,472) 99.35%
Federal Aid 844,738 1,021,860 (177,122) -17.33% 844,738 1,030,990 (186,252) 81.93%
Intrafund Revenues 2,382,830 2,211,808 171,022 - 2,382,830 2,222,000 160,830 107.24%
Total 69,046,039 65,982,216 3,063,823 4.64% 69,046,039 68,697,373 348,666 100.51%

Revenues in the General Fund totaled $69,046,039 for the 2016 fiscal year, which is an increase of
4.64%, or $3,063,823 from the 2015 results. In comparison the 2016 adjusted budget, representative of
the original budget plus (or minus) budget amendments passed by the City Council throughout 2016, the
actual results exceeded the budget by $348,666.

Real property tax collections in 2016 totaled $21,469,686, which was greater than the amount budgeted
and a main driver in the 2016 surplus. When analyzing the collections for 2016 it was determined that the
cause of this total was driven by the following reasons:

1. A higher percentage of property owners paying their current year taxes than in the last five
years, with 96.73% of properties having paid their taxes in 2016. Below is a chart illustrating the
historical trend of the percent of the annual tax levy collected:

Year Percent
2012 95.64%
2013 95.84%
2014 95.68%
2015 95.43%
2016 96.73%

As the chart illustrates the 2016 percent collected is a roughly one percent higher than any other
year from 2012 through 2015.

2. The City Comptrollers Office mailed letters to delinquent accounts more frequently in 2016 than
the historical practice.

General Fund 2016 4th Quarter Report Page 2

 3. The City also found that a higher number of property owners that were to be foreclosed on in
2016 paid their delinquent taxes.

When budgeting, the City includes a tax overlay; an amount forecasted of what taxes will not be paid
during the current year, to ensure the total required tax levy is received during the fiscal year. Due to the
above three reasons, the City recognized the tax overlay as revenue for 2016 based on the actual
collections of revenue. The calculations for property tax revenue are based on the actual collections along
with accounting procedures outlined under governmental accounting.

The City received several one-shot revenues in 2016 that were not budgeted for and are not considered
to be recurring from year to year. These revenues include:

1. A settlement of $360,000 as a refund of prior year expenses relating to the old City Hall site.

2. Revenue of approximately $100,000 from the parking amnesty program the City conducted
during May and June of 2016.

Finally there were several revenues that either increased from 2015, exceeded the amount budgeted for
2016 or both. These include the following:

1. Sales tax revenues were the highest over the time period of 2010 through 2016, which is an
anomaly when compared to the trend being seen throughout New York State currently. Below is a
graph showing the sales tax revenues from 2010 through 2016.

16,000,000
15,583,166
15,824,239
15,250,000 15,558,580
15,072,696
14,681,237
14,827,491
14,500,000

13,750,000
13,374,257
13,000,000
2010 2011 2012 2013 2014 2015 2016

2. Vacant building fees totaled $434,394 in 2016, an increase of over $110,000 from 2015 and also
leading to the Public Safety revenues to exceed their budgeted amount. This is attributable to
property owners paying the fee, in particular those who had the fee relevied onto their property
tax bills.
3. Ambulance billing revenues were $2,191,534 in 2016, almost $500,000 over-budget and an
increase of approximately $290,000 from 2015. This is attributable primarily to the Citys third
party billing company and the increased collections experienced. It should be noted that while
this is the second consecutive year the City has seen a significant increase, the historical average
is much lower, thus, the reason why $1,700,000 was budgeted for 2017.
4. Building permits totaled $841,000 at the end of 2016, which was in excess of $300,000 over the
amount budgeted for 2016. The 2016 total was also over $200,000 greater than that of 2015.
5. Traffic fines were approximately $812,000 in 2015, $112,000 greater than the amount budgeted
and an increase of over $150,000 than that of 2015.

General Fund 2016 4th Quarter Report Page 3

 Expenditures

General Fund Expenditures

Expenditure 12/31/2016 12/31/2015 $ Change % Change 2016 Actual 2016 Budget $ Rem % Expended
Code 1 - Salaries
Perma nent Sa l a ri es 22,384,168 22,929,803 (545,634) -2.38% 22,384,168 23,195,854 811,686 96.50%
Tempora ry Sa l a ri es 767,217 885,372 (118,154) -13.35% 767,217 870,500 103,283 88.14%
Overti me 306,894 473,994 (167,099) -35.25% 306,894 340,500 33,606 90.13%
Overti me - Pol i ce 884,419 893,790 (9,371) -1.05% 884,419 930,635 46,216 95.03%
Overti me - Fi re 1,450,577 1,033,778 416,800 40.32% 1,450,577 1,367,405 (83,172) 106.08%
Overti me - Publ i c Sa fety Gra nts 187,270 523,352 (336,082) -64.22% 187,270 355,486 168,216 52.68%
Mi s c. Other 2,089,181 2,038,117 51,064 2.51% 2,089,181 2,103,219 14,038 99.33%
Total Code 1 28,069,727 28,778,204 (708,477) -2.46% 28,069,727 29,163,599 1,093,872 96.25%

Code 2 - Equipment 192,028 129,281 62,748 48.54% 192,028 176,364 (15,664) 108.88%

Code 3 - Materials & Supplies 1,859,026 2,049,751 (190,725) -9.30% 1,859,026 2,030,341 171,315 91.56%

Code 4 - Contractual Services

Uti l i ti es 2,295,142 2,487,377 (192,235) -7.73% 2,295,142 2,289,475 (5,667) 100.25%
Pos ta ge 28,241 55,076 (26,835) -48.72% 28,241 54,950 26,709 51.39%
Pri nti ng & Adverti s i ng 52,892 51,820 1,072 2.07% 52,892 78,827 25,935 67.10%
Repa i rs & Renta l s 2,041,201 2,191,831 (150,630) -6.87% 2,041,201 2,085,488 44,287 97.88%
Ins ura nce 305,323 293,061 12,262 4.18% 305,323 315,000 9,677 96.93%
Dues 34,110 26,203 7,907 30.18% 34,110 32,660 (1,450) 104.44%
Cons ul ta nt Servi ces 1,651,704 1,760,354 (108,650) -6.17% 1,651,704 2,021,313 369,609 81.71%
Tra i ni ng 182,372 136,037 46,335 34.06% 182,372 218,932 36,560 83.30%
Tra vel 11,124 14,485 (3,361) -23.20% 11,124 19,250 8,126 57.79%
Judgments & Cl a i ms 94,814 290,618 (195,803) -67.37% 94,814 150,000 55,186 63.21%
Conti ngenci es - - - - - 32,579 32,579 0.00%
Uni forms 180,656 117,747 62,909 53.43% 180,656 213,032 32,375 84.80%
Medi ca l Expens es 41,537 9,765 31,772 325.37% 41,537 48,700 7,163 85.29%
Mi s c. Other 42,487 49,453 (6,966) -14.09% 42,487 53,700 11,213 79.12%
Total Code 4 6,961,604 7,483,826 (522,222) -6.98% 6,961,604 7,613,906 652,302 91.43%

Code 6/7 - Debt Service 6,743,592 6,532,531 211,061 3.23% 6,743,592 6,744,002 410 99.99%

Code 8 - Benefits
Pens i on 6,920,741 5,043,637 1,877,104 37.22% 6,920,741 6,537,887 (382,854) 105.86%
Hea l thca re 11,500,520 11,093,663 406,857 3.67% 11,500,520 11,800,058 299,538 97.46%
Denta l 609,759 563,906 45,853 8.13% 609,759 604,550 (5,209) 100.86%
Soci a l Securi ty 2,052,757 2,116,805 (64,048) -3.03% 2,052,757 2,195,363 142,606 93.50%
Worker's Compens a ti on 593,533 329,104 264,428 80.35% 593,533 569,000 (24,533) 104.31%
Total Code 8 21,677,310 19,147,116 2,530,194 13.21% 21,677,310 21,706,858 29,548 99.86%

Code 9 - Interfund Transfers 1,240,403 788,003 452,400 57.41% 1,240,403 1,322,421 82,018 93.80%

Grand Total 66,743,691 64,908,712 1,834,979 2.83% 66,743,691 68,757,491 2,013,800 97.07%

Expenditures in the General Fund totaled $66,473,691 for the 2016 fiscal year, which is 97.07% of the
total 2016 General Fund adjusted budget. The total expenditures include both actual payments made
during the 2016 calendar year and outstanding encumbrances. Encumbrances are by definition
outstanding purchase orders for goods and services.

Permanent salaries totaled $22,384,168 in 2016, which is a decrease in excess of $500,000 from the 2015
actual total and 96.50% of the amount budgeted for 2016. Throughout 2016 the City Administration kept

General Fund 2016 4th Quarter Report Page 4

numerous positions vacant for all of 2016 or for several months, with examples of some of these positions
listed below:

Department Position
Mayors Office Grant Writing Specialist
Bureau of Engineering City Engineer
City Services Administration Commissioner of General Services
City Services Administration Solid Waste Management Specialist
Police Department Various Positions
Fire Department Various Positions
Planning Commissioner of Planning
Planning Economic Development Coordinator
Planning CDBG Director Housing & Community Development
Planning CDBG Planner

General Fund overtime for non-public safety departments totaled $306,894 in 2016; a decrease of
$167,000 from 2015 and a budgetary savings of $33,000. The cause for both the decrease from 2015 and
also the difference between the amount budgeted and the actual costs is attributable to the mild winter
conditions in 2016. The 2015 costs were significantly higher attributable to the overtime costs associated
with snowplowing. The mild 2016 winter also allowed for City savings in materials and supplies, which
totaled $1,859,026 in 2016. This total represents 91.56% of the total amount budgeted for 2016, and also
is a decrease of $190,000 (or 9.30%) from 2015. The mild winter allowed for less salt to be purchased by
the City; thus, creating the savings.

Overtime in the Police Department for the 2016 fiscal year was $884,419, a slight decrease of 1.05% from
the 2015 total. However in comparison to the 2016 adjusted budget, the actual total was 95.03% of the
budgeted total, leading to a savings of $46,216. As illustrated in the line graph below, the 2016 total
overtime is consistent with the actual totals the City has experienced from 2013 through 2015.

900,000
880,935 884,419
891,368 893,790
825,000

750,000

675,000
608,753
600,000
2012 2013 2014 2015 2016

.
The total overtime for the Fire Department in 2016 was $1,450,577, or 106.08% of the 2016 budget.
When compared to the total of 2015 this is an increase of 40.32%, or $416,800. However as the line graph
below illustrates, the 2015 total overtime was at a five year when compared to a time period of 2012
through 2016. The 2016 total was the second highest in the same five year timeframe. As discussed
throughout the year in the quarterly reports the increased overtime is attributable to vacancies within the
Fire Department and the contractual minimum staffing requirements. The Fire Department is required to
have 24 firefighters on staff at all time. When there are vacancies within the department it is required to
callback firefighters to reach the required staffing levels.

General Fund 2016 4th Quarter Report Page 5

 1,600,000
1,492,888
1,450,577
1,400,000
1,365,762 1,385,296
1,200,000

1,033,778
1,000,000
2012 2013 2014 2015 2016

Expenditures for Consultant Services totaled $1,651,704 for the 2016 fiscal year, which is a decrease in
excess of $105,000 in comparison to the 2015 total of $1,760,354. The cause for this decrease is
attributable to the mild winter in 2016, whereas in 2015 the City expended funds for third party snow
removal due to the winter conditions. When compared to the 2016 adjusted budget the actual total for
Consultant Services was 81.71% of the total budgeted amount. This was also caused in part by the mild
winter and the third party snow removal. There were also other departments, such as Planning/CDBG,
DPW Facilities, Corporation Counsel, City Council and the Mayors Office that did not fully expend their
budgeted appropriations for consultants.

Expenditures relating to the Citys debt service totaled $6,743,592 in 2016, an increase of $211,061 from
2015. The cause for the increase was principal and interest payments made on bond anticipation notes
(BANs) for the Citys capital projects.

Pension costs totaled $6,920,741 in 2016 within the Citys General Fund, which is an increase of 37.22%
from 2015 when the total was $5,043,637. While pension costs did increase from 2015 to 2016 the
primary reason for this increase is attributable to the way pension was budgeted for in 2015. The 2015
budget took advantage of a one-time budgetary savings by only including three quarters of pension costs
for the City. Prior to the 2015 budget the Citys pension costs were based on the New York State fiscal
year (April 1 March 31); therefore in 2015 the City only budgeted costs from April 1, 2015 through
December 31, 2015. The 2016 budget included pension costs from January 1, 2016 through December 31,
2016, which is how pension costs will be budgeted for in every fiscal year forward.

Total 2016 health insurance costs in the General Fund were $11,500,520, which is an increase of
approximately $405,000 from 2015. This increase is caused by the annual increase the City has
experienced in health insurance, particularly in retiree health insurance which is a premium based plan.
Despite the annual increase from 2015 to 2016, the total 2016 costs were below the budgeted amount by
almost $300,000. The line graph on the subsequent page illustrates total health insurance costs in the
General Fund from 2012 2016. In 2013 the City changed the health insurance plan from retirees to a
premium plan, allowing for a one-time budgetary savings. However, as is this case with most premium
based plans, the costs for this has increased significantly annually since 2013. The increase in annual
health insurance costs from 2015 to 2016 was the lowest when compared to the increase from 2013 to
2014 ($758,663) and 2014 to 2015 ($846,907).

General Fund 2016 4th Quarter Report Page 6

 12,000,000
11,500,520
10,917,194 11,093,663
11,000,000
10,246,756
10,000,000

9,000,000 9,488,093
2012 2013 2014 2015 2016

Interfund transfers were $1,240,403 in 2016, which is an increase of $450,000 from the 2015 total. The
cause for this increase was caused by the following reasons:

1. Increased street paving expenditures

2. Funding for the Landfill capital project
3. Funding for phase I of the OCA Project

Conclusion

Description 2016 2015 Difference

Revenues 69,046,039 65,982,216 3,063,823

Expenditures 66,743,691 64,908,712 1,834,979

Surplus (Deficit) 2,302,348 1,073,504 1,228,844

The total surplus in the City of Troys General Fund for 2016 totals $2,302,348. This is an increase of
$1,228,844 from 2015s surplus of $1,073,504. This surplus was derived from one-time unanticipated
revenues, an aggressive approach to collecting City revenues, one-time budgetary savings in
expenditures, and tight expenditure control throughout the City.

It is important to note that this surplus does not mean this is liquid cash. Surpluses, based on accounting
ideology, flow from the Citys operating statement to the Citys balance sheet. This results in either
increased assets, decreased liabilities or a combination of both.

It is important to note that this report is based on the actual results of the 12 month 2016 fiscal year for the
City of Troy. It cannot be anticipated that this will be a new trend the City can expect to see, while they
would improve the Citys fiscal condition. The 2016 budget included one-shot revenues to fund recurring
expenditures within the City, for example the sale of One Monument Square and the Scolite site.
Fortunately the budgetary savings in expenditures and the budgetary surpluses in revenues offset the
shortfalls that occurred by these two examples not coming to fruition in 2016.

As noted in the introduction to this report these results should be considered preliminary pending the
completion of the Citys AUD by the end of April 2017 and also the Citys financial audit. However,
based on the work remaining to complete the AUD, the City Comptrollers Office has determined that
these results will not change materially prior to the filing.

General Fund 2016 4th Quarter Report Page 7

Wm. Patrick Madden Andrew Piotrowski
Mayor Deputy City Comptroller

Monica Kurzejeski Office of the City Comptroller

Deputy Mayor
City Hall
433 River Street Suite 5001
Troy, New York 12180-3406

Date: April 6, 2017

To: Honorable Wm. Patrick Madden

City Council Members

From: Andrew Piotrowski

Deputy City Comptroller

Re: Fourth Quarter 2016 Quarterly Financial Report Water Fund

Introduction

Please find enclosed the preliminary revenues and expenditures for the City of Troys 2016 fiscal year in
the Water Fund. Please consider the enclosed results to be preliminary as these are unaudited and the
Citys Annual Update Document (AUD) has yet to be filed. However the City Comptrollers Office
believes that there will be no material changes prior to the AUD being filed at the end of April.

Based on the total revenues and expenditures, the Citys Water Fund has a surplus for the 2016 fiscal
year. This report will provide an overview of the revenues and expenditures by type along with an
analysis on the important items for the 2016 fiscal year.

All questions pertaining to the information provided in this report will be answered at the Finance
Committee Meeting on April 19, 2017.

Water Fund 2016 4th Quarter Report Page 1

 Revenues

Water Fund Revenues

Revenue 12/31/2016 12/31/2015 $ Change % Change 2016 Actual 2016 Budget $ Diff % Achieved
City Water Sales 4,625,962 4,560,360 65,602 1.44% 4,625,962 4,770,000 (144,038) 96.98%
Outside Community Water Sales 7,449,358 7,734,335 (284,977) -3.68% 7,449,358 7,127,000 322,358 104.52%
Unmetered Sales 280,316 283,329 (3,013) -1.06% 280,316 260,000 20,316 107.81%
Use Of Money & Property 257,457 245,584 11,873 4.83% 257,457 210,000 47,457 122.60%
Permits 11,859 15,030 (3,171) -21.10% 11,859 12,000 (141) 98.83%
Sale Of Property 23,800 47,767 (23,967) -50.17% 23,800 51,000 (27,200) 46.67%
Miscellaneous 90,673 102,452 (11,779) -11.50% 90,673 73,043 17,630 124.14%
Interfund Revenues 327,000 327,000 - 0.00% 327,000 327,000 - 100.00%
State Aid - 26,392 (26,392) -100.00% - - - -
Federal Aid - 79,177 (79,177) -100.00% - - - -
Appropriated Fund Balance 1,880,000 - 1,880,000 100.00% 1,880,000 1,880,000 - 100.00%
Total 14,946,426 13,421,427 1,524,999 11.36% 14,946,426 14,710,043 236,383 101.61%

Revenues in the Water Fund totaled $14,946,426 for the 2016 fiscal year, an increase of $1,524,999 or
11.36% from the 2015 fiscal year. When comparing the actual results to the adjusted budget of
$14,710,043, the actual results were in excess by $236,383 or 1.61%.

One of the two primary revenue sources in the Water Fund is the sale of water to city residents, which
totaled $4,625,962 in 2016, or 96.98% of the 2016 budgeted total. In 2015 the total was $4,560,360; thus
the 2016 results were 1.44% or approximately $65,000 greater than 2015. The cause for this increase was
increased consumption throughout the year, aided by the mild winter and hot summer months.

The second primary revenue source is the sale of water to outside communities, with revenues totaling
$7,449,358 in 2016. The 2016 actual total exceeded the budget by $322,000 (or 4.52%), but was a
decrease from 2015 in the amount of $285,000 or 3.68%. Several the reasons for this decrease are:

1. More efficient usage of water by outside communities including fewer leaks and water main
breaks.

2. The water main break in Lansingburgh during January 2016 caused the City to not be able to
provide the municipalities of Waterford and Halfmoon with water until the needed repairs were
made.

3. Several municipalities have a fee structure based on the Consumer Price Index (CPI) which
decreased from 2015 to 2016 leading to a lower per 1,000 gallon rate for the outside
communities.

The Water Fund recognized revenues in the form of appropriated fund balance during 2016 in the amount
of $1,880,000. This funding was for the 2016 Capital Plan established by the Troy City Council in the
2016 fiscal year. The practice of using fund balance to fund the Water Funds capital plan has been
common practice as the fund balance is in sound condition to be able to provide the necessary funding.

Water Fund 2016 4th Quarter Report Page 2

 Expenditures

Water Fund Expenditures

Expenditure 12/31/2016 12/31/2015 $ Change % Change 2016 Actual 2016 Budget $ Rem % Expended
Code 1 - Salaries
Perma nent Sa l a ri es 2,739,172 2,762,527 (23,355) -0.85% 2,739,172 2,886,907 147,735 94.88%
Tempora ry Sa l a ri es 42,175 25,170 17,005 67.56% 42,175 52,500 10,325 80.33%
Overtime 193,840 161,078 32,762 20.34% 193,840 197,500 3,660 98.15%
Mi s c Other 76,657 68,887 7,770 11.28% 76,657 78,100 1,443 98.15%
Total Code 1 3,051,844 3,017,662 34,182 1.13% 3,051,844 3,215,007 163,163 94.92%

Code 2 - Equipment 3,060 40,462 (37,402) -92.44% 3,060 10,000 6,940 30.60%

Code 3 - Materials & Supplies 1,776,465 1,738,928 37,537 2.16% 1,776,465 1,907,435 130,971 93.13%

Code 4 - Contractual Services

Util i ties 261,688 323,896 (62,208) -19.21% 261,688 348,100 86,412 75.18%
Pos tage 31,514 27,363 4,151 15.17% 31,514 29,000 (2,514) 108.67%
Pri nting & Advertis i ng 4,026 5,626 (1,599) -28.43% 4,026 7,996 3,970 50.35%
Repa i rs & Rental s 60,986 115,967 (54,981) -47.41% 60,986 101,801 40,815 59.91%
Ins ura nce 61,065 61,618 (553) -0.90% 61,065 66,750 5,685 91.48%
Dues 3,865 3,781 84 2.22% 3,865 6,000 2,135 64.42%
Cons ul tant Servi ces 176,229 97,796 78,432 80.20% 176,229 325,467 149,238 54.15%
Tra i ni ng 11,752 11,351 402 3.54% 11,752 13,585 1,833 86.51%
Tra vel - - - - - 1,250 1,250 0.00%
Judgements & Cl a i ms 1,000 - 1,000 100.00% 1,000 1,500 500 66.67%
Uni forms 31,319 26,982 4,337 16.07% 31,319 34,000 2,681 92.12%
Mi s c Other 4,437,910 4,174,228 263,682 6.32% 4,437,910 4,441,509 3,599 99.92%
Total Code 4 5,081,355 4,848,607 232,748 4.80% 5,081,355 5,376,958 295,604 94.50%

Code 6/7 - Debt Service 561,106 556,473 4,633 0.83% 561,106 561,106 - 100.00%

Code 8 - Benefits
Pens i on 547,640 333,309 214,331 64.30% 547,640 442,325 (105,315) 123.81%
Hea l thca re 862,224 826,860 35,364 4.28% 862,224 889,218 26,994 96.96%
Dental 47,757 44,704 3,053 6.83% 47,757 47,349 (408) 100.86%
Soci a l Securi ty 226,902 224,737 2,165 0.96% 226,902 249,497 22,595 90.94%
Workers ' Compens a tion 134,678 99,913 34,765 34.80% 134,678 146,500 11,822 91.93%
Total Code 8 1,819,201 1,529,523 289,678 18.94% 1,819,201 1,774,889 (44,312) 102.50%

Code 9 - Interfund Transfers 1,880,000 - 1,880,000 100.00% 1,880,000 1,880,000 - 100.00%

Grand Total 14,173,030 11,731,655 2,441,375 20.81% 14,173,030 14,725,395 552,365 96.25%

Expenditures in the Water Fund totaled $14,173,030 for the 2016 fiscal year, an increase of $2,441,375 or
20.81% from the 2015 total of $11,731,655. However when compared to the 2016 adjusted budget, the
actual expenditures were 96.25% of the total budgeted amount. This created a budgetary savings of
$552,365. The total expenditures include both actual payments made during the 2016 calendar year and
outstanding encumbrances. Encumbrances are by definition outstanding purchase orders for goods and
services.

Water Fund 2016 4th Quarter Report Page 3

Both Utilities and Repairs & Rentals decreased from 2015 to 2016 by $62,000 and $55,000 respectively,
caused by the mild winter months. The mild winter allowed for less energy consumption during the
winter months and also fewer repairs needed to the vehicle fleet within the Water Fund.

Consultant Service expenditures totaled $176,229 in 2016, which is 54.15% of the total amount budgeted,
but did increase by 80.20% or $78,432. Costs relating to the repair of the 33 water main break in
Lansingburgh were the cause for the increase in total costs from 2015 to 2016.

Expenditures listed under the Misc. Other category totaled $4,437,910 in 2016, or 99.92% of the 2016
adjusted budget. This is an increase of $263,682 from 2015 when the total was $4,174,228. The following
expenditures encompass the majority of this expenditure grouping:

1. Payment to the General Fund for staffing and other expenditures provided by the Citys General
Fund.

2. Payment to the General Fund per a PILOT agreement for the John P. Buckley Water Treatment
Plant.

3. Transfer to the General Fund of current year surplus as budgeted for.

4. Payment to outside municipalities for property taxes on properties owned by the Water Fund.

The cause for the increase from 2015 to 2016 was from the increase in the budgeted amount of surplus to
be transferred from the Water Fund to the General Fund. In 2015 the amount passed in the Citys budget
to be transferred was $1,972,000 whereas in 2016 the amount was $2,222,000.

Pension costs were $547,640 in 2016, an increase of 64.30% from 2015. While pension costs did increase
from 2015 to 2016 the primary reason for this increase is attributable to the way pension was budgeted for
in 2015. The 2015 budget took advantage of a one-time budgetary savings by only including three
quarters of pension costs for the City. Prior to the 2015 budget the Citys pension costs were based on the
New York State fiscal year (April 1 March 31); therefore in 2015 the City only budgeted costs from
April 1, 2015 through December 31, 2015. The 2016 budget included pension costs from January 1, 2016
through December 31, 2016, which is how pension costs will be budgeted for in every fiscal year forward.

The offsetting expenditure for the appropriation of fund balance is in Interfund Transfers, totaling
$1,880,000 in 2016. This transfer was made to the Capital Projects Fund for the 2016 Water Fund Capital
Plan, as the accounting for capital plans is completed within the Capital Projects Fund. There was not a
transfer in 2015 as a capital plan was not completed.

Conclusion

Description 2016 2015 Difference

Revenues 14,946,426 13,421,427 1,524,999

Expenditures 14,173,030 11,731,655 2,441,375

Surplus (Deficit) 773,396 1,689,772 (916,376)

The total surplus in the Citys Water Fund for 2016 totals $773,396. This is a decrease from the 2015
surplus (which totaled $1,689,772) in the amount of $916,376. The decrease is attributable to the decrease

Water Fund 2016 4th Quarter Report Page 4

in water sales to outside communities, the increased surplus transfer to the Citys General Fund, costs
related to the repairs of the 33 water main in Lansingburgh and increased pension costs.

As noted in the introduction to this report these results should be considered preliminary pending the
Citys AUD being completed by the end of April and also the Citys financial audit. However based on
the work remaining to complete the AUD, the City Comptrollers Office has determined that these results
will not change materially prior to the filing.

Water Fund 2016 4th Quarter Report Page 5

Wm. Patrick Madden Andrew Piotrowski
Mayor Deputy City Comptroller

Monica Kurzejeski Office of the City Comptroller

Deputy Mayor
City Hall
433 River Street Suite 5001
Troy, New York 12180-3406

Date: April 6, 2017

To: Honorable Patrick Madden

City Council Members

From: Andrew Piotrowski

Deputy City Comptroller

Re: Fourth Quarter 2016 Quarterly Financial Report Sewer Fund

Introduction

Please find enclosed the preliminary revenues and expenditures for the City of Troys 2016 fiscal year in
the Sewer Fund. Please consider the enclosed results to be preliminary as these are unaudited and the
Citys Annual Update Document (AUD) has yet to be filed. However the City Comptrollers Office
believes that there will be no material changes prior to the AUD being filed at the end of April.

Based on the total revenues and expenditures, the Citys Water Fund has a minimal deficit for the 2016
fiscal year. This report will provide an overview of the revenues and expenditures by type along with an
analysis on the important items for the 2016 fiscal year.

All questions pertaining to the information provided in this report will be answered at the Finance
Committee Meeting on April 19, 2017.

Sewer Fund 2016 4th Quarter Report Page 1

 Revenues

Sewer Fund Revenues

Revenue 12/31/2016 12/31/2015 $ Change % Change 2016 Actual 2016 Budget $ Diff % Achieved
Sewer Rents 4,025,198 3,750,985 274,213 7.31% 4,025,198 4,201,252 (176,054) 95.81%
Sewer Charges 141,634 135,422 6,213 4.59% 141,634 103,100 38,534 137.38%
Use Of Money & Property 211 253 (42) -16.70% 211 1,000 (789) 21.09%
Miscellaneous 24,489 25,127 (638) -2.54% 24,489 26,955 (2,466) 90.85%
Total 4,191,532 3,911,787 279,745 7.15% 4,191,532 4,332,307 (140,775) 96.75%

Revenues in the Sewer Fund for 2016 totaled $4,191,532, or 96.75% of the 2016 adjusted budget. When
comparing the 2016 total to that of 2015, which totaled $3,911,787, the 2016 revenues increased by
7.15% or approximately $279,000.

City sewer rents charges to city residents make up 96.03% of the total Sewer Fund revenues with a total
in 2016 of $4,025,198. This total represents 95.81% of the total amount budgeted for 2016, leading to a
shortfall of $176,000. The amount budgeted for sewer rents are based on 85% of the city water revenues
from city residents which is based on the current fee structure.

The 2016 sewer rent revenue increased by 7.31%, or $274,000 when compared to the 2015 total of
$3,750,985. The City raised the sewer rate to 85% of the water rate effective January 1, 2015; however
this is based on the dates meters are read and not the bill date. Therefore the new rate structure did not
truly impact the Sewer Funds financials until the beginning of the second quarter when read dates had
passed January 1st. In 2016 the City recognized a full year of revenue with the sewer rate equaling 85% of
the water rate, thus, creating the increase from year to year.

Sewer Fund 2016 4th Quarter Report Page 2

 Part II Expenditures

Sewer Fund Expenditures

Expenditure 12/31/2016 12/31/2015 $ Change % Change 2016 Actual 2016 Budget $ Rem % Expended
Code 1 - Salaries
Permanent Salaries 750,702 780,426 (29,723) -3.81% 750,702 805,518 54,816 93.19%
Temporary Salaries - 23,371 (23,371) -100.00% - 2,500 2,500 0.00%
Overtime 85,628 62,307 23,321 37.43% 85,628 85,000 (628) 100.74%
Misc. Other 20,454 14,345 6,109 42.58% 20,454 15,750 (4,704) 129.87%
Total Code 1 856,784 880,449 (23,665) -2.69% 856,784 908,768 51,984 94.28%

Code 2 - Equipment - 21,490 (21,490) -100.00% - - - -

Code 3 - Materials & Supplies 230,177 200,517 29,660 14.79% 230,177 286,000 55,823 80.48%

Code 4 - Contractual Services

Utilities 8,071 7,825 246 3.15% 8,071 10,860 2,789 74.32%
Repairs & Rentals 137,280 936,228 (798,949) -85.34% 137,280 160,174 22,894 85.71%
Insurance 14,616 14,498 118 0.81% 14,616 18,250 3,634 80.09%
Consultant Services 43,242 8,343 34,899 418.30% 43,242 47,337 4,095 91.35%
Training - - - - - 100 100 0.00%
Judgments & Claims 242,198 92,367 149,831 162.21% 242,198 247,520 5,322 97.85%
Contingencies - - - - - 102,000 102,000 0.00%
Uniforms 5,387 5,875 (488) -8.31% 5,387 8,500 3,113 63.37%
Due To Other Funds 479,209 479,209 - 0.00% 479,209 479,332 123 99.97%
Total Code 4 930,003 1,544,345 (614,342) -39.78% 930,003 1,074,073 144,070 86.59%

Code 6/7 - Debt Service 74,548 74,447 101 0.14% 74,548 74,548 (0) 100.00%

Code 8 - Benefits
Pension 156,483 93,596 62,887 67.19% 156,483 132,638 (23,845) 117.98%
Healthcare 289,850 311,788 (21,938) -7.04% 289,850 299,761 9,911 96.69%
Dental 15,025 16,189 (1,163) -7.19% 15,025 14,897 (128) 100.86%
Social Security 63,692 65,480 (1,788) -2.73% 63,692 71,816 8,124 88.69%
Worker's Compensation 79,073 23,800 55,273 232.24% 79,073 90,000 10,927 87.86%
Total Code 8 604,124 510,852 93,271 18.26% 604,124 609,112 4,988 99.18%

Code 9 - Interfund Transfers 1,502,500 900,000 602,500 - 1,502,500 1,502,500 - 100.00%

Grand Total 4,198,136 4,132,101 66,036 1.60% 4,198,136 4,455,001 256,865 94.23%

Expenditures in the Sewer Fund totaled $4,198,136 for the 2016 fiscal year, an increase of $66,036 or
1.60% from the 2015 total of $4,132,101. However when compared to the 2016 adjusted budget, the
actual expenditures were 94.23% of the total budgeted amount. This created a budgetary savings of
$256,865. The total expenditures include both actual payments made during the 2016 calendar year and
outstanding encumbrances. Encumbrances are by definition outstanding purchase orders for goods and
services.

Expenditures classified under the Repairs & Rentals category totaled $137,280 in 2016, which was
85.71% of the amount budgeted for. In comparison to the 2015 total of $936,228 expenditures have

Sewer Fund 2016 4th Quarter Report Page 3

decreased by 85.34%. Throughout 2015 costs for the Combined Sewer Overflow Project (CSO) were paid
for out of the Sewer Fund which is the cause for the decrease in 2016.

Judgments & Claims totaled $242,198 in 2016, an increase of $92,367 from 2015. The 2016 costs
represent an encumbrance for continued work on mandated inspections of the sewer system throughout
the City.

Expenditures classified under Due To Other Funds totaled $479,209 in both 2015 and 2016, with these
costs being reimbursements to both the General and Water Funds for services rendered by both on behalf
of the Sewer Fund.

Pension costs were $156,483 in 2016, an increase of 67.19% from 2015. While pension costs did increase
from 2015 to 2016 the primary reason for this increase is attributable to the way pension was budgeted for
in 2015. The 2015 budget took advantage of a one-time budgetary savings by only including three
quarters of pension costs for the City. Prior to the 2015 budget the Citys pension costs were based on the
New York State fiscal year (April 1 March 31); therefore in 2015 the City only budgeted costs from
April 1, 2015 through December 31, 2015. The 2016 budget included pension costs from January 1, 2016
through December 31, 2016, which is how pension costs will be budgeted for in every fiscal year forward.

Interfund Transfers in the Sewer Fund are for transfers to the other City funds for costs related to the CSO
project. In 2015 this amount totaled $900,000 and was transferred to the Debt Service Fund and in 2016
the amount transferred to the Capital Projects Fund was $1,502,500.

Conclusion

Description 2016 2015 Difference

Revenues 4,191,532 3,911,787 279,745

Expenditures 4,198,136 4,132,101 66,035

Surplus (Deficit) (6,604) (220,314) 213,710

The deficit in the Sewer Fund for 2016 was $6,604 whereas in 2015 it was $220,314. This is an
improvement of $213,710 when comparing the difference in surplus between 2015 and 2016. The deficit
was primarily caused by revenues in the Sewer Fund not equaling the amount of the transfer required for
the CSO project along with increases in costs relating to judgments and claims and pension.

As noted in the introduction to this report these results should be considered preliminary pending the
Citys AUD being completed by the end of April and also the Citys financial audit. However based on
the work remaining to complete the AUD, the City Comptrollers Office has determined that these results
will not change materially prior to the filing.

Sewer Fund 2016 4th Quarter Report Page 4