The City of Cortland looks to be assisted by the New York State Financial Restructuring Board for Local Governments. Currently, the city is considered eligible for the assistance by the board as the City of Cortland is currently rated by the New York State Comptroller’s Office as Moderately Distressed City and the current tax rate is double the threshold.
“This would be a very rigorous review of the city’s financials, but also some of the operating procedures we have as well as looking at staffing and I.T. It is an option that is available to [Cortland].” Director of Administration & Finance Lisa Henty said during the financial report of the meeting.
Henty continued on saying the City would be eligible for a special grant funding source if the city decides to take the recommendations that come after the review by the Restructuring Board. The review is expected to take about a year to complete and would come at no cost to the City of Cortland. The grant would be for $200,000.
“If we accept no recommendations, we’re not eligible for the grant funding source.” Henty said to the council. “Either way this would be an opportunity to have an outside entity review some of the challenges that we currently have and provide what I would say is an expert opinion.”
The review would essentially be an audit for lack of a better term, Henty said, with reviews of financials going back at least three years for the City of Cortland. She noted more details on what the review will be like cannot be given until the council voices their support.
The Common Council voted unanimously to approve a request for a comprehensive review by the New York State Financial Restructuring Board for Local Governments.