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Wednesday, August 20, 2014
news@eastniagarapost.com
Lockport Mayor Anne McCaffrey read a prepared statement this afternoon in a press conference in City Hall regarding the city's finances and the state audit that was released today.
Her statement follows in its entirety:
Today, the NYS Comptroller's Office released an audit of the City of Lockport's cash flow.
The Comptroller's report indicates that the problem stems from two factors 1) the city used fund balance as a financing source for operating expenditures until it was depleted and 2) the city failed to maintain accurate accounting record or prepare an adequate cash flow analysis. The city's audited financial statements for the year ending 2012 included account balances that were materially misstated.
I was verbally informed of these concerns by the comptroller's office in April. Since that time, I have taken steps that the comptroller's office has recommended to me to address the city's cash flow.
Specifically, in June it was recommended to me that the City of Lockport pursue deficit financing as a means to repay a Revenue Anticipation Note from 2013 as well as previous years' fund deficits. I acted swiftly and was able to obtain Common Council, NYS Senate and Assembly approval for the deficit financing legislation six days later.
Between May and June, five city positions were vacated due to retirement, resignation or job elimination. None of these positions have been refilled in an effort to reduce city expenses.
We recently took action to have the city get out of the ambulance business, thereby reducing minimum manning staffing levels in the fire department. This process is underway and is expected to take effect within the next month. This will immediately reduce the overtime costs, in direct response to an area of concern identified in the audit.
Last week, I submitted the City's application to the New York State Financial Restructuring Board for a full review of city operations. If accepted, the Board will review all aspects of city government and recommend measures to restructure, share services and increase efficiencies.
Over the past few months, I have made many necessary and difficult decisions and I will continue to make the tough choices on behalf of Lockport taxpayers.
I will continue to work closely with the comptroller's office and other state officials and accept their assistance and recommendations to improve Lockport's finances. I will continue to work to find ways to reduce city spending, while continuing to provide essential services.
For the past few months, I have been reviewing the structure of the treasurer's office. We recently brought in an accounting consultant to assist in correcting our financial statements and provide us with a more accurate accounting of the city's finances. The treasurer recently informed me that he is contemplating not seeking re-election next year. As I indicated in my response to the comptrollers last month, I am working on restructuring the treasurer's office to ensure that accurate and timely accounting records will be maintained going forward. The Common Council and I will finalize that plan in the coming weeks.
I will continue to face our fiscal challenges head on and will consider all measures to take swift action to ensure that our cash flow and fiscal outlook improve.
I will take the difficult steps necessary to right our ship and I will continue to keep the public apprised of our efforts through an open dialog. I expect difficult decisions will be facing me and the Common Council over the coming months and I want to assure the public.
As I said in March in my inaugural address, the city's finances are of paramount importance to me and my administration and I have an will continue to do everything within my power to get the city's finances back on track. I will continue to work diligently and put all of my efforts into ensuring that our city will come out of this stronger.
I am confident that the city's best days lie ahead.
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So in layman's terms, "we spent all the money. We don't know what we spent it on. By the way, I work really hard, and make really tough decisions. Also, we are privatizing ambulance service because paying someone else to do a job we used to do ourselves is always cheaper"
ReplyDeleteI'd like to know what she means by mentioning that the treasurer is going to quit.