Mayor Patrick Madden: City of Troy overcomes 25-year fiscal challenge
TROY, N.Y. (NEWS10) - After 25 years, the City of Troy made its final payment to the Troy Municipal Assistance Corporation (MAC) last week. Mayor Patrick Madden announced Saturday the end of the City’s annual debt obligations to the MAC, a result of repeated and unchecked overspending and shortsighted financial decisions of then-City leaders nearly four decades ago.
Mayor Madden said, "This week’s milestone is the result of my administration’s laser-focus on rebuilding the City’s finances, ending the practices of one-shots to meet annual costs, sale of City assets to meet annual expenses, and strong, aggressive oversight of City budgets. We made tough choices, and the results speak for themselves."
The Troy MAC is a corporate governmental agency developed by the City to help avoid possible bankruptcy after overspending by City leaders took place during the 1980s. Approximately $65M of financial assistance was provided by New York State in 1996 to resolve the City’s then-outstanding debt obligations and established a repayment schedule for the subsequent two and a half decades. Since 1996, the City of Troy has made annual payments of approximately $6-7M to the MAC.
Councilmember Sue Steele, Democratic Caucus Leader, said, “Today is truly an historic moment in the City’s long climb back from near-bankruptcy. This accomplishment lifts a painful burden off taxpayers, and signals the establishment of a new financial foothold for the City. I commend Mayor Madden and his team for their professionalism and hard work that resulted in six balanced budgets and a return to long term fact-based financial planning. The previous Democratic majority was proud to work with the Mayor, City Comptroller’s office, and department staff to rebuild the City’s financial foundation, and will serve as a check against the current Council leadership’s efforts to return the City to the past practices that resulted in our financial troubles three decades ago.”
This final payment triggers dissolution of the MAC, a multi-month process which marks the end of the city’s annual MAC debt obligations. It is anticipated that the dissolution will be complete by the end of 2nd quarter of this year.