Rochester will experience fiscal stress in the coming years, the office of New York Comptroller Thomas DiNapoli said in a recent report.
The state's third largest city is experiencing growing budget gaps, according to the report. The city has the highest rate of families living in poverty, 25.8%, of any of the state's cities. At 9.8%, the city's unemployment rate is significantly higher than the state average of 7.9%.
"The financial and demographic challenges facing Rochester are not unique, but they are some of the most significant in the state," said DiNapoli. "Clearly, urban centers like Rochester will need help to overcome a number of social and economic hurdles. Rochester has taken a number of positive steps to put itself on stronger fiscal footing but faces ongoing challenges."
Of New York's four largest cities outside of New York City with dependent school districts (called the "Big Four"), Rochester has the highest levels of poverty and debt, the report states.
Fitch Ratings and Standard & Poor's rate Rochester's general obligation debt A-plus with stable outlooks. Moody's Investors Service rates the debt Aa3.
The city is at 61% of the constitutional debt limit and 75% of its constitutional tax limit. These levels are the highest of the Big Four cities.
From 2001 to 2011 the city's revenues increased at an annual rate of 3.6%. During the same period its expenditures rose at an annual rate of 3.7%.
The city's government estimated that it started the fiscal 2012-13 year with a $40 million shortfall. The government projects significant budget gaps through the 2017-2018 fiscal year.
Rochester's population has declined by 37% since 1950 and now stands at about 211,000.
The city's median home value is $73,600 compared to the median of $96,000 for all New York cities except New York City.
"I take great pride in Rochester's conservative fiscal management," said Rochester Mayor Thomas Richards. Among other steps, Richards noted that the city had reduced employment by 14% in the last 10 years and entered a single-payer health care agreement with the employees union saving the city $10 million annually.
DiNapoli's office plans to release additional reports on New York's cities over the coming months.
