By Eileen Buckley
Buffalo, NY – The Buffalo Fiscal Stability Authority held its final meeting of the year Monday. Control board members learned of a slight improvement in closing a $2 million first quarter budget gap created by overspending. But the board continues to warn leaders to monitor spending closely.
There appears to be a small glimmer of hope that City Hall belt-tightening is starting to take hold. As the city edges toward the end of the second quarter, Finance Commissioner James Milroy says current projections show they've closed in on a budget gap.
Milroy says an increase in sales tax revenues, some county funds for last seasons snow plowing and funding from the state's child and family services, helps to reduce a $2 million budget gap to about 250,000. But Milroy says with overtime and disability costs in police and fire and more snow plowing, the gap could go back up.
"The winter is not over and we still have a lot of things to do," Milroy said. "But we are cautiously optimistic that we are closing the gaps and we are on plan."
But board members called those "unexpected revenues." Chairman Thomas Baker says while these are "positive surprises," he warns city department heads to do a better job of managing the budget books.
"The department heads and the commissioners have got a responsibility for their piece of the budget," Baker said. "We have to monitor that and everyone has to watch that as we go along. Surprises are no good in this business."
Baker says the "key" is for the city to live within the budget it has set forth, especially when it comes to sick and overtime costs.
"I don't know that anything to draconian has to take place," Baker said. "I would feel dramatically different at the end of the second quarter if we were a situation that was more extensive than where we are today."
But the control board did approve Mayor Masiello's $25 million capital budget request for the current fiscal year. This will include $15 million for the Buffalo Fire Department to build new fire stations and purchase equipment. Baker says this will increase efficiency for fire services.
"This is not an exercise about knocking down fire houses and just eliminating fire houses," Baker said. "It has to do with putting a better, more efficient fire house, strategically located within the community, to provide the same level of service it provided before."
The board also approved a hiring freeze and the refinancing of $9.1 million in bonds for HSBC Arena. The refinancing will save the city more than $400,000 in the current fiscal year.