~ State of the City Address ~
January, 2011 

My message today will cover three major topics:

• The fiscal condition of the City
• Benchmarks to measure ourselves
• Setting the tone of the community

Never did I dream that my fifth year of being Mayor of the City of Johnstown would be mostly about fiscal survival.  Few individuals anticipated such a sudden, rapid decline of global, federal, state and local governmental fiscal stability.  Our fiscal policies for Johnstown have always been wisely on the conservative side, especially under the watchful eye of present City Treasurer Mike Gifford and so for the meantime, we have a very slight edge as we find our way through serious fiscal unpredictability and turmoil.  Having said that, however, as strongly urged by Mr. Gifford, we must be even more vigilant about our 2011 spending than we had even imagined last October. when we began to assemble this year’s budget. 

If left to our own management of dollars and self-imposed control of money, I honestly think we would be fine.  However, due to an ongoing inflationary trend, and more importantly, the need for NYS and the Federal government to pass through costs to us, an almost insurmountable burden  has been placed on local governments.  For example, of the 3% tax increase this year 2.4% of that number can be attributed to increased pension costs and less state aid.   This indicates that even with increased contractual costs, health insurance increases and inflationary factors, we were able to actually meet the challenge of the delicate balance of revenue versus expenditures. 

How did we achieve a balanced budget this year that imposes a modest local .6% tax increase? We have delayed some capital purchases and projects, found ways to become even more efficient and we are actually in the process of making our government slightly smaller.  In the last 5 years we have been very thoughtful about equipment purchases which will also sustain us at least for now. 

I need at this time to especially thank the all department heads and all of our employees for their willingness to meet the challenges of 2011 and beyond. I know you take a great deal of pride in your work and it is never easy to do with less, but by being determined and creative, I am confident we can sustain the essential services of our government and  the core mission of government which is health and safety.  

 A note of thanks must also be made to the many employees who will not have any salary increases for the 2011 fiscal year.  

The question remains, however, if this present economic trend continues or becomes even worse where do we go in the future?   

In anticipation of 2012, the plan for 2011 is to refrain from unnecessary spending, continue to search out other sources of funding such as grants, find additional ways to become more efficient and to ask the community to be patient with us as we make internal adjustments until the economic uncertainty eases.  

Despite the dominating feature of our fiscal state, I am encouraged by several aspects of last year and really the last five years since I have been mayor.  I think that if we look specifically at a few benchmarks of achievement we can determine how we are doing as governmental leaders. 

I feel the following can be cited as points for benchmark consideration:

• Stable tax rate
•  Substantial growth within the city
• Property price stability
• Blight attack
• Sustained sense of community

Since 2006 when I first took office, the city tax rate has remained between $15.00 and $16.00.  It has been my administrative goal, certainly with the help of the Council and Mike Gifford, to keep the tax rate at a point where we can provide the desired level of city services at an affordable rate.  We must be mindful of our constitutional taxing limit in the coming years, and I anticipate some additional tax increases, but up to this point we have stayed reasonably within the limits of affordability.   We have reached a significant goal by doing so.

I am pleased to observe that some, but certainly not all, of the commercial, industrial, and housing growth in the city has been very substantial during my tenure.  Our tax rate and availability of city services encourages business location to our city.  We have worked hard to create and maintain a very business friendly environment, to establish a clear and consistent vision for future growth as set forth in our comprehensive plan and have recently established an overlay of favorable zoning regulations. Only the city ordinances remain to be completed and we will soon commence work in that area. 

In the last five years our assessed value has grown by about 61 million due to industrial growth and by hundreds of thousands of dollars due to commercial expansion. Examples of this commercial growth include a new car dealership, hotel and bank along with the remodeling of an existing hotel and several restaurants.    

In the last five years we have had over 50 housing starts, including six new housing units made possible by a Restore NY grant. It allowed us to form a public/private partnership for beautiful new housing on a former manufacturing site.  It has been a stellar project for the city and only one of a few Restore New York grants that has been actually completed. 

We are familiar with the fact that property foreclosures continue to be a problem around this entire country.  However, we have not seen a serious spike in city foreclosures. Additionally, although there is an obvious decline in the sale of property within the city, the prices of those that have been sold remains solid.   

I feel very comfortable saying that the City of Johnstown is cleaner and has less blight than in decades.  We have managed to demolish 9 homes that could not reasonably be salvaged and 5 manufacturing/industrial sites are moving down the path for renewal.   

Because we have really made significant progress for each of the cited benchmarks, we have done our jobs as elected officials. 

I feel it is fair to draw the conclusion that Johnstown is still a very desirable place to locate for families, business owners and industry.  Continued pursuit of these established benchmarks or goals will enhance the quality of life for all the people who live and work here. 

And so where do we go from here?  I say we continue to find ways to become more efficient, wisely spend the dollars we have, look for ways to expand our tax base  and assessed value, encourage smart growth, and promote in every way possible the small locally owned businesses that allow the investment dollars to flow through our economy three and four times.  

Our tax rate, taxing limits, fund balance determination, etc. are all tied into our total assessed value.  In short, we can not sustain our government service levels without growth. As you all know I am very adamant about annexation of land into the City of Johnstown. Annexation should be considered a form of consolidation. It allows for regional growth while helping to preserve the infrastructure that the cities own and must maintain for its residents.  

I am hopeful that the Town of Mohawk/ Montgomery County boundary established in 1838 will be re-drawn to allow for future industrial growth.  The revenue possibilities are important to us, but really the potential for job creation is critical. The city has been a major player in regional development for years and I am confident that we can serve Johnstown taxpayers in that respect in the future. 

I would now like to commend the council members that I have had the good fortune to work with for several years.  Being a legislator in my opinion has become increasingly difficult. It is not only the dire fiscal circumstances from which we are being forced to carve out success but also to endure  the climate of governmental distrust so prevalent in our country today.  

I thank this council for always holding their elected position to the highest of standards. You have displayed an immense amount of discipline with regards to knowing the true role of a legislator while staying within the boundaries of your charge as defined by the city charter.  You are always civil and respectful to your constituents but also to one another.  I have never even heard a negative remark made publicly about another municipality or elected official.  

Governor Teddy Roosevelt made a visit to Johnstown in September of 1899. A recent Leader Herald article published indicates that he spoke before 12,000 people and the title of his speech was Honesty in Politics. 

Roosevelt said, “You cannot afford to trust a public man as your representative, unless he bases his actions on the moral law and principles of common decency, righteousness, truthfulness and decency.” 

This council has lived up to those principles and it has served our city well 

You are willing to do the intense work of being a council person and have each displayed the political courage to do what you think is right.  I would never claim that all of our decisions have been completely right, but I will say that each decision has been measured very carefully. You have always taken into consideration what is best for the Johnstown taxpayers and you continually set a businesslike and professional tone for the community.   As mayor, I could never ask for more.  

A special thanks to Brett Preston who has taken another position of responsibility in our community.  We will have a special time in one of our coming council meetings to thank Brett in a more formal way.   

The coming years will continue to be challenging, but because of the work we have done in the last 5 years we have positioned ourselves well and with a little fiscal luck we  will continue to be the place of choice for many families.