Schenectady council rejects custodial account for summer concert series; item sent back to committee

The Schenectady City Council on May 27 failed to approve a resolution authorizing the city to establish a custodial account to hold sponsorship funds for a proposed downtown concert series, with the measure sent back to committee after a 4-2 vote.

The custodial-account proposal, moved by Councilmember Michael Farley and seconded by Councilmember Yvonne Patrick, would have allowed the city’s finance office to create an account to receive private sponsorships for city-run events, including a planned summer concert series the mayor’s office said would start June 12.

Council members split over both the substance and the process. Councilmember Marcus Farley said the language before the council differed from what had been discussed in committee and that the council should revisit the item: “The appropriate thing to do is to bring it back and then let’s just have a conversation about it,” he said. Councilmember Damian Mancini and Councilmember Williams likewise said they lacked needed details and voted no. Councilmember Toro and Councilmember Patrick voted in favor, while Councilmembers Farley, Mancini, Porterfield and Williams voted no, producing the 4-2 failure.

Why it matters: supporters said the account is an administrative step to let the city hold sponsorship money for downtown programming; opponents said the change in wording from a previously discussed “trust and agency” account to “custodial account” and missing operational details warranted more committee review.

Mayor McCarthy told the council the change in name reflected current accounting practice and that the city already acts as fiscal agent for other programs. He said private sponsors had already raised about $30,000 for the proposed series and listed bands and tentative dates, and described the custodial account as a small administrative mechanism. “This group is asking us to do a little bit of accounting, which is probably in the neighborhood of 2,500 or $3,000,” he said, and added that larger city events like the holiday parade cost far more to administer.

Council discussion focused on process and details the council said were not provided before the vote. Councilmember Porterfield cited Governmental Accounting Standards Board guidance (GASB Statement No. 84) and said she had expected firm follow-up from corporation counsel after a committee meeting; she said the clarifying information promised for Thursday did not arrive in the form she expected. Several council members asked for specifics about who would manage the event, which organizations were organizing it, sponsorship arrangements, and whether the city would receive revenue or only act as a fiduciary.

The clerk called the roll after debate. Councilmember Toro said he was voting yes and asked the mayor to clarify the program’s duration and performer lineup; Councilmember Patrick said the resolution merely created an accounting mechanism and she voted yes. Councilmembers Farley, Mancini, Porterfield and Williams said they would vote no and asked that the item return to committee for the additional information they had requested. The president announced the measure failed 4 to 2 and that it will return to committee.

Next steps: The council president said the item will go back to committee; members noted there is still time for the item to return to the council before the mayor’s stated June 12 start date if the committee meets in the interim.

Details and context: Mayor McCarthy provided a tentative schedule of performers during the meeting and said the concerts were planned for a city parking lot. He said the city currently acts as fiscal agent for programs including the old ARP program and Music Haven. Councilmembers repeatedly requested written answers about account type, management, sponsorship arrangements and whether the city expects any direct revenue from the events.

The vote and the matters left unresolved mean the council will consider the custodial-account resolution again in committee before returning it to the full council.