From New York Association of Government Accountants April 21 Press Release
May 5, 2008

The New York Capital Chapter of the Association of Government Accountants (AGA) announced that Schenectady Mayor Brian U. Stratton, will receive their Outstanding Achievements in Government Accountability Award.

The award formally recognizes government employees who have demonstrated sustained outstanding leadership and notable contributions to financial management. Stratton will receive the award on May 8 at the New York State Leadership and Accountability Conference at the Hart Theatre in the Empire State Plaza.

When Stratton took office in January 2004, he was faced with a financial crisis. Schenectady’s cumulative projected deficit was $10.2 million, with all five major operating funds in red. The State Comptroller’s Office was predicting that by mid 2004 the city would be bankrupt and a state-imposed financial control board would be established to manage the city’s finances. Further, the city had not performed audits in the prior three years, most contracts were not signed, the city was surviving financially through improper use of restricted funds and the credit rating was the lowest in the New York State.

Stratton worked with the city council, county legislature and state leaders to quickly put a recovery plan in place. He also hired a highly skilled professional financial management and administrative team. The mayor then implemented a five-year Strategic Financial and Management Plan to close the budget gap while maintaining quality of services to the residents, created economic competitiveness and restored fiscal balance by increasing revenues and cutting expenses. The mayor’s priority was to put the city’s fiscal house in order, restore its credit rating and above all, restore public confidence.

Stratton and his administrative team restored fiscal stability within two years and by the end of his first four-year term, the city had an all-funds unreserved balance of $8.1 million, as well as an all-funds reserve balance of $17.8 million. In summary, from 2004 to 2008, Stratton achieved the following key goals:

• Completely eliminated the cumulative deficit within 24 months.

• All funds have a surplus for the first time in a decade.

• Increased non-tax recurring revenues by 54 percent or 15.2 million, from $28 million to $43 million.

• Increased State Aid by 108 percent or $6.1 million through effective lobbying efforts.

• Sold old property tax liens to a private firm – received $25.9 million.

• Increased the city’s credit rating from a low in 2004 of Ba3 (negative outlook) to the 2007 Moody’s upgrade to Baa2 (Investment Grade).

• Successfully negotiated seven employee labor contracts.

• Forged new partnerships with government agencies – consolidation of Mechanical Division with county that saved the city $5 million in new investments.

• Forged new partnerships with the private sector - $200 million in new investments.

• Created the city’s first Comprehensive Plan in 37 years.

• Improved and upgraded a fully integrated Computer Network System (MUNIS).

Stratton was also cited for his distinctive leadership, public service, professionalism and innovative thinking that brought Schenectady from the brink of financial catastrophe to solvency and hope for the citizens of the area.