Poughkeepsie Cuts Deficit By About Half

POUGHKEEPSIE, NY — The City of Poughkeepsie has cut its general fund deficit by a little more than half. City officials released audited financial statements for 2018 Monday showing the deficit went down from about $13.2 million at the end of 2015 to about $7.1 million at the end of 2018.

Mayor Rob Rolison said this was the third consecutive years the city has out-performed the managing of revenue and expense projections.

"The city's deficit reduction plan is a three-pronged approach toward rebuilding our fund balance by unwinding inter-fund receivables and payables, limiting non-essential borrowings and crafting realistic budgets each year," he said in a prepared statement.

City Administrator Marc Nelson said that, when Moody's Investors Service removed the city's negative outlook in July 2017, they said that further bond rating increase could result from a declining deficit and improved liquidity.

"We've checked those boxes and many more," he said, adding the city has established reserve accounts for snow removal emergencies, employee benefits and judgments and claims.

Poughkeepsie has also reduced its self-insured retention from $1 million to $500,000, closed its transit fund which had operated at a deficit for years and had a series of successful collective bargaining outcomes, Nelson said.

The complete audited financial report can be accessed by clicking here.

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