OFFICE OF THE MAYOR
CITY OF SCHENECTADY, NEW YORK
City Hall, 105 Jay Street, Rm 111
Schenectady, N.Y. 12305-1938
Office: (518) 382-5000
Cell: (518) 424-0483
Fax: (518) 382-5272
gmccarthy@schenectadyny.gov
Gary R. McCarthy
Mayor
For Release: Immediate
Date: October 1, 2015
Press Release

Mayor Gary McCarthy Announces

Proposed 2016 City of Schenectady Budget

Proposed 2016 Budget Includes No Tax or Fee Increases and

Plans for Potential 10% Property Tax Reduction in 2017

Qualified Homeowners Will Receive State Rebate for .73% of Tax Bill

SCHENECTADY – Mayor Gary McCarthy today proposed his 2016 City of Schenectady Budget. The budget holds the tax rate flat and continues Schenectady’s efforts to reduce the total tax levy, which is down nearly 1% since Mayor McCarthy took office.

“I am proud of our strong record of fiscal responsibility. Schenectady’s total property tax levy will be approximately 1% lower this year than it was four years ago. This proposed budget will hold all taxes and fees flat, as we prepare for a major property tax reduction in the 2017 Budget,” said Schenectady Mayor McCarthy. “Changing the course of Schenectady’s finances in difficult times required tough decision making, but through fiscal discipline and building strong partnerships, we have been able to achieve what some thought was impossible.”

The release of the Proposed 2016 Budget follows the recently announced New York State Comptroller’s Fiscal Stress Monitoring System scores. Schenectady received the best possible fiscal score and is one of only three cities in the entire state to receive score and the only city in the Capital Region to achieve that feat.

In 2014, S&P raised its rating from A- to A and assigned a stable outlook. This past January, Moody’s removed its negative outlook from Schenectady’s rating. Both agencies cited Schenectady’s strong fiscal management as cause for the improvements.

The City is poised for a promising future of strong growth. Moody’s cited the City’s expected increased revenue driven by the Mohawk Harbor development and sales tax growth from construction and tourism generated by the casino. The casino is expected to draw over two million visitors a year and generate $50 million for the local economy in the form of worker payrolls, benefits and tips by 2019. This growth combined with fiscal restraint has allowed the City to establish a goal of a 10% property tax reduction in 2017.

Additionally, Schenectady has assembled $10 million in funding for demolitions and renovations as part of the Mayor’s efforts to rebuild Schenectady neighborhoods under the Home Ownership Made Easy in Schenectady (HOMES) Program. The Program is working to revitalize neighborhoods through a concentration on homeownership, code enforcement, and removal of blighted structures that are a hindrance to investment and drain City resources. A recent study by the University at Albany’s Center for Technology in Government showed that a single property slated for demolition can generate expenses in excess of $65,000. By removing these dangerous structures, the City is creating long-term fiscal relief and encouraging further investment.

Budget Highlights include:

• 2016 Tax Rate flat compared to 2015

• 2016 Tax Levy reduced by .25%

• Continued investment in park improvements

• Nearly 11 miles in paving in 2016, continuing on the recent trend which has done 44 miles since 2011

• .22% Increase in General Fund Budget – continuing the trend of below inflation

• Proposed budget includes 4 new police officers & 1 new detective and two Fire Department safety programs

• Continue City operations of the Waste Water Treatment Plant, saving over $1,000,000 per year

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