Council reviews sewer-fund transfers to cover retiree and health costs

Binghamton City Council members heard an explanation Monday about transfers from the sewer fund to cover higher-than-expected retiree and health-insurance costs and some electricity bills.

Comptroller Chuck Robinson said an analysis showed several sewer-fund budget lines would be overdrawn by year-end. Robinson told the council the lines in question include retiree contributions and regular health-insurance accounts; the city had miscalculated the number of retirees and employees covered in the sewer and water funds.

"The sewer fund is healthy," Robinson said, adding that the fund has generated interest this year and that some fund balance will be used to cover the shortfalls. He said fund balance can be used for debt service and other purposes but that the Office of the State Comptroller does not specify a single “healthy” percentage the city must maintain.

Council members pressed for clarity about fund-balance policy and whether the administration has a reserve threshold; Robinson said there is no OSC-defined percentage and the city does not have a single written policy setting a precise target. Council member Hotchkiss asked whether the electricity increases were already built into next year’s budget; Robinson said the administration has included anticipated increases across departments but that he would provide the exact percentage.

No formal vote on the transfers was recorded during the works session; the item was considered in the finance committee with Council member Kavanaugh listed as the finance lead for the item.

The discussion included questions about which lines were the source of the transfers and how the miscalculation of retirees occurred; Robinson said the error was recognized in prior sessions and was being corrected through the budget transfers.