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Ogdensburg may seek assistance from State Financial Restructuring Board to address budget woes

Posted 2/25/17

By JIMMY LAWTON OGDENSBURG – City Manager Sarah Purdy says Ogdensburg is eligible to apply for a comprehensive review for the state’s Financial Restructuring Board. Purdy said this is mixed news …

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Ogdensburg may seek assistance from State Financial Restructuring Board to address budget woes

Posted

By JIMMY LAWTON

OGDENSBURG – City Manager Sarah Purdy says Ogdensburg is eligible to apply for a comprehensive review for the state’s Financial Restructuring Board.

Purdy said this is mixed news for the city.

“This news is both positive and negative – negative in that it indicates our financial positive on is not healthy, but positive in that we are eligible for assistance in addressing it,” she said.

In a previous update Purdy said that state officials said the city would need to reduce its staffing numbers before it would be eligible for help.

“There is an application process for receiving assistance, and there are stipulations that accompany the assistance. I am reviewing all the in formation, and will provide a report on what is involved in this process under New Business at the March 13 Council meeting,” Purdy said in her update to council.

The Financial Restructuring Board provides assistance to municipalities struggling financially.

If Ogdensburg requests assistance and the FRB agrees to help, the FRB can request any information necessary to understand the municipality’s finances and operations.

The FRB would then make recommendations to the city on improving its fiscal stability, management, and the delivery of public services.

The FRB can also offer grants or loans of up to $5 million through the Local Government Performance and Efficiency Program for undertaking certain recommendations.

If the city agrees to undertake the board’s recommendations, it would be contractually bound to fulfill those terms in order to receive the aid.