Cortland schedules Nov. 19 public hearing on 2025 budget after finance report flags reimbursements and rating change

The Cortland Common Council voted unanimously to file the proposed 2025 city budget and set a public hearing for Nov. 19, 2024, at 6 p.m. at City Hall. The action followed a detailed finance report showing a large negative general‑fund figure the presenter tied to the timing of reimbursable grant expenditures and delayed state reimbursements.

Why it matters: The finance report said those timing issues, combined with late audits and low reserve levels, are factors a rating firm cited in notifying the city it will be downgraded from A+ to A. A lower rating can increase borrowing costs for the city if it issues bonds to fund capital projects.

Finance Director (staff) told the council that many capital and grant‑funded projects have required the city to pay costs up front and then wait for state reimbursement, creating a temporary shortfall in the general fund. "Do not be terrified by that number; there is a good and logical explanation for it," the director said, adding that staff have submitted reimbursement claims and are monitoring those receivables.

Council members questioned how the rating assessment weighed demographic trends, student population effects and long‑term liabilities. Director Greenwood asked whether the rating firm had considered student population impacts; staff said the firm includes county and college‑area demographic trends in its analysis. Council members also discussed operational changes the city has made, including alternating payroll and accounts‑payable weeks to improve cash‑flow predictability and reduce late fees.

The council encouraged careful review of the draft 2025 budget included in the meeting packet and confirmed that it may modify appropriations or anticipated revenues before final adoption at its Dec. 3 meeting. The filing and hearing resolution passed by voice/roll call with council members recorded as voting in favor.