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CNY Regional Market Authority has financial problems
The financial position of the New York Central Regional Market Authority has deteriorated and will continue to experience annual net losses if measures are not taken to increase revenues and reduce expenses, according to an audit released Tuesday by State Comptroller Tom DiNapoli’s office.
The audit found that the Syracuse-based public authority, which operates a farmers market and flea market to help vendors sell their products and has programs and services to promote agriculture in the region, recorded a total net decline of 6 million dollars at the beginning of the fiscal year. fiscal year 2020-21 to $4.9 million at the end of fiscal year 2022-23. Money available to pay operating costs decreased from $502,807 to a deficit of $6,539 over the same period.
Auditors also found that the facility needs tens of millions of dollars in renovations and estimates without changes there could be a $410,000 shortfall in commercial leasing revenue by the end of this fiscal year.
Additionally, the audit revealed that the authority’s board failed to adequately manage the authority’s financial situation, including failing to develop realistic budgets, failing to monitor operations and expenses, and failing to do a thorough analysis before spending more than $2 million on a warehouse that It needs extensive renovations and has been a drain on the authority’s budget.
“The board and staff of the New York Central Regional Market Authority need to turn around their financial operations before their fiscal situation worsens. I am pleased that they took our findings and recommendations seriously and are working on a corrective action plan,” DiNapoli said in a statement.
The audit recommends that the board take immediate action to reduce spending, increase revenue, or both; adopt realistic budgets, monitor actual results and address deficiencies; and prioritize critical needs and fill rental space. In response to the audit, the board chair said the authority agreed with the audit’s financial findings and is acting on the recommendations.
The board is made up of appointees from Onondaga, Oswego, Cayuga, Madison, Cortland, Oneida and Wayne counties, as well as the commissioner of the state Department of Agriculture and Markets.
“We are committed to ensuring the regional market continues to play the role it does,” said Onondaga County Executive Ryan McMahon.
However, the role it plays today is not the role it needs to play, he said.
“It’s a valuable resource for farmers. It’s a valuable resource for fresh produce and fresh food for our residents and a community space that you can’t really put a price on, but that can do more,” McMahon said.
Boosting tourism and increasing foot traffic to the market will in turn help family farms, McMahon said.
“A new modern market will help support farms even more because we will have more people there and that’s what we really have to do. We have to figure out consistent revenue streams for the market but at the same time make this a strong regional asset It has been a long time since there has been real investment in this market”, he stated.
Raymond Lowe, owner of Hiwire Honey in Lafayette, has sold his honey products at the market every Saturday for nine years.
“It is certainly an essential component in our business. We have a lot of people, even people who want to get into beekeeping, who stop by, talk to us and then discover that there really is an educational channel and then we make connections,” said Lowe.
Even if they don’t move a lot of product, Lowe said the connections the market offers can pay off later. Although the market has been its largest and most consistent customer base, as not all consumers want to drive to Lafayette to buy Lowe’s honey.
“They might love the idea of a local honey producer, but are they really going to drive 15 miles to get a jar of honey? When I started there, I was excited to sell $50 worth of honey in a week and 10 years later, it’s really turned into something that’s a fundamental part of my business,” Lowe said.
McMahon emphasized that the market will continue to exist.
“For our regular farmers who depend on the market, we will make sure it exists and we will work with the board, the executive director and the state,” he said.