The city's top financial auditor, Comptroller Barbara Miller-Williams, has responded to acting Mayor Scanlon's proposed budget for the upcoming fiscal year, and she has concerns.
In a statement Miller-Williams said while the proposed $622,074,415 budget is "technically balanced" she remains apprehensive about the city's "reliance" on nonrecurring revenue sources.
“At the forefront it is critical that the delivery of core city services must be maintained as per the city charter. As I have stated in the past, the city must be very cautious about relying on one-time revenues, such as proceeds from the sale of city parking ramps and the Rapp lots," Miller-Williams said.
"This has become a recurring practice throughout the past few years and clearly poses a long-term risk to the fiscal stability of the City of Buffalo,” she added.
Miller-Williams went on to highlight the tight margins of the proposed budget.
“Finally, I am concerned about the financial tightrope of this recommended budget to meet any unforeseen significant monetary circumstances, such as natural disasters, unbudgeted legal settlements, and unexpected maintenance and operations costs in the City of Buffalo," she said.
She ended by urging the Scanlon administration, the common council and the Buffalo Fiscal Stability Authority to "develop a comprehensive plan to address the city's fiscal stability."
The city is staring down the barrel of a projected $70 million budget deficit for the 2025 to 2026 fiscal year according to the city's own calculations.
As well as an 8% property tax increase, the Scanlon administration is proposing a 3% "bed tax" and the sale of four city-owned parking ramps to help stabilize the city's finances.
Scanlon said he estimates the sale of the ramps would net between $40 to $60 million over more than one fiscal year, and the bed tax would make $3.5 million for the upcoming fiscal year alone.
The creation of the parking authority and the bed tax both need state support if they are to happen. If not, Scanlon said Buffalo residents could see a property tax increase of up to 30%, likely to be combined with cuts to services.
Scanlon has responded to Comptroller Miller-Williams concerns, saying in a statement that he did work with the fiscal authority, and his focused on greater financial health for the city.
"For several years, people have strongly implied that 2025-2026 would be the budget year in which the City of Buffalo figuratively and literally falls off a financial cliff. However, my administration’s proposed city budget turns 2025-2026 into the year that Buffalo turns the corner and is back on the road to fiscal strength and economic growth," wrote the acting mayor. "My proposed spending plan responsibly addresses the city’s inherent structural deficit, enhances vital services, protects essential employees, strengthens our commitment to investing in infrastructure and city-owned facilities, and helps secure the city’s long-term financial stability."
He also took issue with the comptroller's analysis that proposals such as a hotel bed tax and sale of city-owned parking lots were "one time revenue" sources.
"Both initiatives are strategic, responsible solutions designed to stabilize the city’s finances for not only this budget cycle, but for years to come," Scanlon said. "BMPA [Buffalo Municipal Parking Authority] will provide an influx of approximately $40 - $50 million in cash, generate about $2.5 million in annual recurring revenue, relieve the city of its maintenance and capital expenses from the ramps, and provide parking rate protections for residents, the public and visitors."
The common council has until May 26 to review and vote on the proposed budget.
