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Comptroller flags $500,000 operating gap; $3.8 million payment could reverse projection
Summary
Comptroller Tony Tracy told the council the city’s first‑quarter results show a roughly $500,000 deficit excluding a planned $500,000 fund‑balance draw; she said a $3.8 million payment under a pilot agreement with 901 Main Street could turn that into a $3.3 million surplus for 2026.
Comptroller Tony Tracy reported to the council that, on a budget‑to‑actual basis, the city is close to plan but that budgeted use of roughly $500,000 of fund balance masks operating shortfalls. "In reality, though, we did plan within our budget to use $500,000 of our fund balance to balance it that way," Tracy said, and without that draw the city is effectively looking at about a $500,000 shortage.
Tracy said key pressure points include higher New York State retirement projections — she cited approximately $805,000 more than anticipated for police and fire retirement costs — and softer revenues in areas including cannabis sales tax and prisoner transport. "They are currently projecting at about $805,000 more than we anticipated when we planned the budget," she told the council.
As a major offset, Tracy said the city expects a payment of $3,800,000 under a pilot agreement with 901 Main Street this year; when that receipt is counted the projection moves from a $500,000 shortfall to a projected $3,300,000 surplus for 2026. She said the city is holding that payment in reserve while staff determines capital expenditure needs and that council may direct how to allocate any surplus toward capital projects or garage repairs.
Tracy also said the city received renewal quotes late in the day for workers' compensation. The carrier PERMA, with which the city has worked for 15 years, quoted approximately $999,720 for a policy that includes a self‑insured retention (a nominal reduction from current pricing) and an option roughly $300,000 higher without the retention; staff will obtain further quotes and a cost comparison before next week's meeting.
Council members asked for clarifications about prisoner transport revenue and liability for licensed waterfront operators; staff said some revenue shortfalls are timing issues and that further detail will follow in the second‑quarter review. No binding fiscal actions were taken at the meeting.
