City reviews 2016 budget

Economic development ‘No. 1 priority’ for Troy

By Melanie Yingst - [email protected]

TROY — City council reviewed the highlights of the city’s budget at a finance committee meeting workshop on Nov. 23, noting that the 2016 budget expenses does not include a cost of living increase for the city’s employees.

Members of the city finance committee approved to move forward with the 2016 budget with their approval. The committee also approved agency funding for Troy Main Street for $55,000, Troy Rec for $29,000 and Troy Development Council for $125,000.

In 2016, the city’s expenses are project to be approximately $29 million without the cost of living increase. General operation expenses for the city will tick up approximately $220,000 from last year to be approximately $23.6 million in 2016. Capital expenses are projected to be approximately $5.68 million for 2016.

“You’ll hear me say this a couple of times, but we are in negotiations with all six of our bargaining units. As we do every three years, we can not project what that (cost of living increase) is going to be until those negotiations are finalized,” said director of public service and safety Patrick Titterington. “For every 1 percent increase, across all funds, it’s approximately $150,000.”

The city is projecting income tax revenue to increase 5.3 percent from $15.2 million up to $16 million in 2016. Titterington said the city has “been doing fairly well with business expansions and employee counts continue to be stable and growing.”

Titterington said the 2016 budget will continue to “foster the goal that we have with the Troy Development Council, which is workforce attraction.”

“With the city projects, with private projects, in conversations with our business, it continues to be our No. 1 issue,” he said. “There is a definite demand that is out stripping supply as the economy improves and there are more projects out there on the street.”

Titterington also noted the city’s income tax collection rates may be subject to change due to state municipal tax reform such a House Bill 5.

“As long as we stay disciplined and the economy cooperates, we should be OK for the next five years,” he said.

At the end of the fiscal year of 2016, the city projects to have $19.4 million to carryover into 2017, more than $3 million more than previously projected. At the beginning of 2016, the city will carryover $22.1 million to its general fund.

“Our departments do a great job and only spending for what they need,” Titterington said.

Economic development ‘No. 1 priority’ for Troy

By Melanie Yingst

[email protected]

Reach Melanie Yingst at [email protected] or follow her on Twitter @Troydailynews

Reach Melanie Yingst at [email protected] or follow her on Twitter @Troydailynews

comments powered by Disqus