DiNapoli: Utica is Struggling

New York State Comptroller Thomas DiNapoli says that Utica is struggling financially.

The city, in central New York about 50 miles east of Syracuse, has "nearly depleted its fund balances," according to a report issued by DiNapoli's office.

Utica also nearly depleted its water trust fund in fiscal year 2012.

The city of 62,000 suffers from several socio-economic problems. About 24% of the families live in poverty, compared to 11% statewide. The city's unemployment rate is 9.6%, compared to 8.3% in the state.

The city has also lost a great deal of its population. From 1930 through 1960 it had about 100,000 residents.

In recent years the city has had to raise taxes, cut jobs and deplete its reserves, according to DiNapoli.

The median home price in Utica is only $85,300, decreasing the city's tax base. Furthermore, 12% of the city's properties are vacant and another 37% of the properties are tax-exempt.

"As mayor I have already made many hard decisions, but ahead of us lies nothing but more difficult choices," said Utica Mayor Robert Palmieri. "With Comptroller DiNapoli's counsel and patience, I am confident that we can finally put an end to Utica's long history of financial mismanagement."

DiNapoli's report on Utica is one of a series of planned fiscal profiles of New York cities.

He also expects to issue reports on some of the factors contributing to financial pressures on New York State's local governments.

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New York
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