CBS6 - Search Results
Colonie gets thumbs up for 'significantly' improving finances
COLONIE -- For years, the Town of Colonie struggled with massive deficits that, at one point, totaled more than $35 million. But according to a report issued by New York State Comptroller Tom DiNapoli, things are looking up financially in Colonie.
DiNapoli credits Town Supervisor Paula Mahan and her administration for improving the towns finances 'significantly' since taking office in 2007 by addressing the financial burdens she inherited from the previous administration head-on.
Despite its strong tax base, Colonie has struggled financially over the past decade but is now showing signs of improvement, said DiNapoli. Supervisor Mahan is aware of the challenges facing her town and has made difficult, but necessary financial decisions to align spending with revenues and eliminate budget deficits. Careful budget planning and an honest conversation about the numbers will continue to be vital to turning around the towns finances.
Colonie's financial challenges were highlighted by DiNapolis office in separate audits in 2008 and 2012.
At the end of the 2008 fiscal year, the towns General Fund and Landfill Fund had deficits that totaled $29.3 million and $7.6 million. In just four years, the General Fund deficit has been reduced from $29.3 million to $245,000. The Landfill Fund deficit was completely eliminated with Mahan's decision to move forward with a plan to have the town's landfill run by a private waste management company.
We are in the sixth year of our ten-year financial plan and the results indicate that we are in a much stronger financial position than we were in 2008 and we continue to build our reserve funds, said Town of Colonie Supervisor Paula Mahan. I commend Comptroller DiNapolis efforts to take a proactive approach to provide resources to municipalities in fiscal stress. My administration will continue to work with the Comptroller to stay on the right path and maintain our conservative financial approach.
Mahan said they will be implementing many of the recommendations from the Comptroller's 2012 audit into its ten-year financial plan. This includes addressing the use of short-term borrowing to cover annual operating expenses. The Comptrollers fiscal stress monitoring system highlighted this issue when it identified Colonie as one of six communities in significant fiscal stress. The town, however, has reduced its reliance on short-term borrowing from a high of $11 million in 2006 to $2.5 million in 2012.
DiNapoli has issued nearly a dozen profiles on municipalities across the state. As part of this effort, DiNapoli will also release in-depth reports on some of the issues that contribute to the financial pressures on local governments.
Earlier this year, DiNapoli also implemented an early warning monitoring system that gives local communities a fiscal stress score. Under his Fiscal Stress Monitoring System, DiNapoli identified 24 counties, cities and towns with fiscal years that coincide with the calendar year that are in fiscal stress. DiNapoli will issue additional fiscal stress updates for other local governments with different fiscal years on an ongoing basis.
DiNapolis system evaluates local governments on nine financial indicators and creates an overall fiscal condition score. Indicators include fund balance, cash-on-hand and patterns of operating deficits. The scores are used to classify a local community as being in significant fiscal stress, moderate fiscal stress, susceptible to fiscal stress and no designation. The system also evaluates communities relative to 14 environmental stress factors such as population trends, poverty rates and property values.
For a copy of the Colonie fiscal profile visit:
For copies of Comptroller DiNapolis 2008 and 2012 audits of Colonie visit:
For more detailed information about Comptroller DiNapolis fiscal stress monitoring system and to view reports related to local government fiscal stress visit: