UPDATED: Feb. 1, 2018 at 2:41 p.m.

Syracuse Mayor Ben Walsh addressed economic development plans and the city’s looming structural operating deficit in his first “state of the city” address on Wednesday.

Walsh, in an auditorium at Fowler High School’s PSLA, said Syracuse would embrace drone technology, prepare for major infrastructure projects and work with county officials and the private sector, moving forward.

The speech was Walsh’s second major address since his public inauguration on Jan. 6.

As Syracuse runs a $16.5 million deficit this fiscal year, Walsh said the city will be challenged to raise money as traditional revenue sources remain stagnant or dry up.

The city’s “rainy day” fund, which at one point totaled nearly $70 million, is currently keeping the city from insolvency, Walsh said. But the mayor added that the fund could be gone in two years.

State aid — the city’s second largest revenue source — has not increased with inflation and city expenses, Walsh said. And Destiny USA will make its final expansion fee payment in March, putting a “big hole” in Syracuse’s next budget, the mayor added.

“None of us can live this way, and neither can the city,” Walsh said.

The mayor on Wednesday said the city will “reinvigorate” its participation in a Shared Services Initiative that was created by Onondaga County Executive Joanie Mahoney. That plan is estimated to cut local government costs by streamlining some city of Syracuse and Onondaga County functions under joint oversight.

Former Mayor Stephanie Miner frequently clashed with Mahoney throughout her time in office. But Walsh said his team has met with county representatives more than a dozen times since the start of the year.

“I won’t even tell you how many texts I’ve received from the county executive herself,” Walsh said.

A Fiscal Summit Advisory Committee, convened in partnership with Syracuse University’s Maxwell School of Citizenship and Public Affairs, will soon begin monthly meetings. The committee’s draft recommendations are expected to be released in early fall 2018, and the first recommendations will be implemented in the city’s 2019 city budget, Walsh said.

“I spoke to Chancellor Syverud yesterday, and he offered his strong support for the city,” the mayor said.

The mayor and his team have also met with federal and state officials, including New York Sens. Chuck Schumer (D-N.Y.) and Kirsten Gillibrand (D-N.Y.), Rep. John Katko (R-Camillus) and Gov. Andrew Cuomo, Walsh said.

As the city prepares for future infrastructure projects, Walsh said the city has an “obligation” to find contractors and a diverse workforce.

The mayor announced “Syracuse Build,” an economic program that would train local workers with the construction skills needed for building projects, including the redevelopment of sections of the East Adams Neighborhood near the I-81 viaduct.

“We will also employ similar approaches for related opportunities in business, health, food and retail services,” Walsh said.

A bike-share program will be coming to Syracuse in the next few months, Walsh said. With assistance from a volunteer group called the Syracuse Bikeshare Commission, the city will select a bike supplier in the spring.

Walsh also announced the creation of a city performance management system called the Office of Accountability, Performance and Innovation, which he said will drive “continuous improvement in quality, customer-focused city services.” The office’s meetings will be open to the public.

He also detailed other economic initiatives. Syracuse’s Innovation Team, formed in 2015 with the support of Bloomberg Philanthropies, will continue to seek recommendations on focus projects. The team’s next priority area will be selected by the mayor by the end of February, he said.

Drones, the mayor said, will “create an explosion of job opportunities in science, technology, engineering and math.” Walsh said Syracuse will soon be the largest city in the United States covered by the infrastructure and software necessary to fly drones for commercial use.

The mayor said his team has already met with leaders of that initiative, including private sector employers.

“Our journey will go faster if the businesses and institutions of our great city get behind us and push us along, investing their resources here in our city, opening their doors to the rich talent pool here in our community,” Walsh said.

CORRECTION: In a previous version of this post, the upcoming process for Destiny USA’s final expansion fee payment was misstated. Destiny USA will make its final expansion fee payment in March. The Daily Orange regrets this error.

Published on February 1, 2018 at 12:20 am

Contact Jordan: jmulle01@syr.edu | @jordanmuller18