Chamberlin Michelle Smith: A credit to our department heads and employees, who work with us throughout the year to stay on budget
From City Hall, pictured are Mayor Buckley, Alderwoman Brown and Alderman Bassage follow along with the audit presentation provided by Matthew Montalbo, CPA (standing, left) and Michael Krause, CPA (standing, right) of Drescher & Malecki LLP.
The City of Hornell received its annual audit at the October Common Council meeting. The audit was performed by Drescher & Malecki LLP, with the presentation provided by Matthew Montalbo, CPA and Michael Krause, CPA. The audit provided a clean, unmodified opinion with no findings, and noted the financial health of the City is stable, with another A+ grade provided.
Montalbo noted the clean, unmodified audit is, “the best you can get” and stated, “when performing the audit, we not only look at the financials and numbers, but looking at the processes in place is a key component of the audit, and the City of Hornell has demonstrated sound processes.”
In an in-depth review of the financial picture of the general fund, Montalbo stated, “From 2021 to present, there has been a 40% increase in expenditures, which is not unique to Hornell, every local government in New York is dealing with this. This is a challenging trend throughout the state, and compared with other municipalities, the City of Hornell is in a strong position. I would say Hornell is in the upper tier compared to other cities, demonstrating best practices and not having big swings in its budget. The City has a strong fund balance which positions it well during these challenging times.”
Costs slightly outpaced revenues in the general fund, which was anticipated. The water fund had a slight increase in fund balance due to a one-time, unplanned revenue. The City had planned to use some fund balance in 2025-26 and ended up using far less than budgeted, thanks to careful budgeting and departments staying mindful of spending throughout the year.
City Chamberlain Michele Smith highlighted the City’s careful approach to budgeting, “During our budget process, we are careful not to overestimate revenues while remaining mindful of rising costs for materials, supplies, energy, personal services, retirement, and health insurance. These financial challenges affect every community, so it’s important that we budget realistically and monitor our finances closely throughout the year. I’m very pleased with the audit, which reflects a positive financial outlook and confirms that our processes are sound. That’s a credit to our department heads and employees, who work with us throughout the year to stay on budget.”
Finance Committee Chairman and 5th Ward Alderman Daniel Warriner stated his thoughts after the audit, “I really appreciate all of the hard work and dedication from Chamberlain Michele Smith, Mayor John Buckley, and the department heads and employees for being very mindful of their budgets and spending throughout the year. It was great to hear the City of Hornell is in a strong position to weather the potentially challenging times ahead.”
Mayor John Buckley also shared his thoughts, “We’re very pleased with the results of the audit and the overall financial picture of the City of Hornell. We know these are challenging times, with the cost of just about everything continuing to rise, but we’ve still been able to make many significant investments in our community. By being aggressive in pursuing grant funding and maintaining sound financial practices, we’ve made more than $9 million in improvements to our Water Pollution Control Plant, helped qualified homeowners with Neighborhood Revitalization grant funding, improved our parks and recreational opportunities, and continued to invest in the vehicles and equipment our City departments need to provide the high level of service our residents deserve. We’re proud of what we’ve accomplished while continuing to be good stewards of taxpayer dollars.”
Montalbo reviewed that the water fund is similarly stable, with costs rising quickly there as well. Revenues have flattened, while costs have continued to climb, which a recent water rate increase should assist with.
As challenging economic outlooks are evident, the auditors noted they don’t see costs easing anytime soon, with many mandated expenses unfunded and costs continuing to vary and increase. Mayor Buckley closed by asking his yearly question on a letter grade for the review, and Montalbo responded, stating, “I’d give this an A+. Hornell is in a good position.”
