Buffalo, N.Y. (WBEN) - The Buffalo Common Council voted in approval of Mayor Chris Scanlon's $110 million 2025 capital budget on Tuesday, making it the largest investment in infrastructure, public safety, public schools and community assets in the city’s history.
Since submitting the proposed capital budget back on Nov. 1, Mayor Scanlon strongly advocated support among Councilmembers, underscoring the impacts the investment would have on city neighborhoods and the quality of life of residents by upgrading the city’s aging infrastructure and public safety, educational, and cultural facilities.
"This historic capital budget reflects the shared commitment of my administration and the Common Council in addressing some of the city’s immediate challenges and investing in innovative solutions for growth and Buffalo’s future," said Mayor Scanlon on Tuesday. "With unprecedented collaboration among our county, state, and federal partners, we are investing in Buffalo's future to build a city that is safe, healthy and strong."
The approved capital budget leverages funding sources, including the American Rescue Plan and other federal funds, and New York State highway funds, and is projected to generate over $1 billion in indirect economic impacts citywide.
This capital budget contains three sections: The Annual Capital Budget, the Buffalo Public School District Capital Plan, and the Public Works Bond Anticipation Note (BAN) Requests.
Annual Capital Budget:
The $27.2 annual capital budget enables the city to continue its investment in the city’s infrastructure, public safety, healthy neighborhoods, cultural institutions, and parks. This plan is based on the recommendations of the Citizens Planning Council following robust hearings and discussions with the Buffalo Common Council, the heads of City Departments, and the heads of various cultural and education organizations operating city-owned buildings.
Buffalo Public Schools Capital Plan:
The $55.45 million investment is dedicated to upgrading infrastructure across multiple school campuses, including lighting, lead abatement, masonry, and structural improvements. These improvements are up to 97% reimbursable by the New York State Department of Education and any additional costs will be covered by the Buffalo Public Schools.
Public Works Bond Anticipation Notes (BANs):
This $27 million BAN proposal will utilize short-term bonds to leverage over $200 million in federal and state funding, allowing for the completion of large-scale infrastructure projects. These BANs are 100% reimbursable by Federal and State Grants already secured by the City of Buffalo and will only cost the City of Buffalo around $900,000 in issuance costs and interest.
"The minimal cost of these bold investments will leverage hundreds of millions of dollars in needed infrastructure improvements, which will spur over $1 billion in direct and indirect economic impacts throughout the city," Mayor Scanlon added.
The Buffalo Common Council approved the capital budget by a 6-1 vote, which is just under the Comptroller’s Cap of $28 million.
The approved budget allocates funding to the following key initiatives:
Buffalo Fire Department: A total of $3.09 million will be dedicated to the Buffalo Fire Department, addressing a range of critical needs. This includes renovations, the purchase of new equipment, and upgrades to ensure the department is well-equipped to serve the community.
Buffalo Police Department: The Buffalo Police Department will receive $3.05 million to fund essential public safety infrastructure improvements. These funds will enhance the department’s capabilities, ensuring the safety and security of Buffalo’s residents.
Department of Permit & Inspection Services: The Department will receive $600,000 to support citywide demolitions, addressing blight and fostering urban renewal efforts to improve neighborhoods throughout the city.
Department of Public Works - Buildings: A total of $2.92 million will be invested in public buildings, including upgrades to various community centers and key city infrastructure, ensuring that public facilities continue to meet the needs of residents.
Cultural & Educational Organizations: The city’s cultural institutions will receive more than $4 million to maintain and restore historical and educational landmarks. This investment reflects Buffalo’s commitment to preserving its cultural heritage and supporting its arts and education sectors.
Acting Council President Bryan Bollman feels city lawmakers took this capital budget very seriously, especially after city comptroller Barbara Miller-Williams penned Mayor Scanlon nearly a month ago over concerns with the money borrowed exceeding the established debt cap of $28 million by $82 million in 2025. These concerns come over the fears of the city's current and future fiscal uncertainties, unspent funds on ongoing projects in the city, and potential arbitrage issues.
"The comptroller has been sounding the alarm, as far as we have this gray fiscal cloud in front of us, and we have to look at everything and make sure that we're taking everything seriously," said Acting Council President Bryan Bollman. "But we have to balance that and make difficult decisions. And honestly, we have to balance fixing our roads, fixing our sidewalks, fixing our community centers, and investing in the City of Buffalo and on our infrastructure. So Council members did vote on it today and pass the budget, but it wasn't that we didn't take the comptroller's comments seriously."
"We heavily deliberated, and included in that was a 100% reimbursable BAN for infrastructure projects on Bailey Avenue, Jefferson, Main Street. Those are important projects that we've been talking about to our constituents for years, prior to me even being elected. So I think it's important we keep those projects moving forward, and make sure that we don't lose the dollars that were committed by the federal and state governments."
Council Majority Leader Leah Halton-Pope is grateful for the city comptroller raising these questions to the mayor and the Common Council. She says Tuesday's discussions and subsequent vote was to know the city is not going over the cap, and clarifying that these sections in the capital budget are three different pots.
She adds it's important to ensure city departments are running properly thanks to the Public Works BANs, and that the city continues to see improvements across the board.
"Leveraging $800,000-to-$900,000 for $200 million in order to take care of our infrastructure, that's critical in my district, for sure. Some projects that have been started for some time, and Jefferson goes from Main all the way to Swan. So the greater portion of Jefferson is in the Ellicott District, so personally, I don't want to lose that at all," said Halton-Pope on Tuesday. "There's a lot of infrastructure that needs to happen and be taken care of in my district: Streets, sidewalks, curbs. Then you add to the capital budget when we talk about fire, police and quality of life, departments that actually keep the city running. It's important that we know what we're doing with that."
"This is really important to note that it's 100% reimbursable. So we do the work, we submit the receipts, we get reimbursed for that 100%. For Buffalo Public Schools, the state will reimburse up to 97%. So both of those projects seem to be financially selfless. It's not going to be putting a burden on the city overall, because it will be reimbursed."
The only Council member to vote down the 2025 capital budget was University District Councilman Rasheed Wyatt. He feels approving this budget, despite the warnings from the city comptroller is irresponsible.
"We've exceeded the amount that the comptroller has set for the city, and she's given us some warnings about the impact to our credit rating and just the ability to pay. As a financial person to see that and to hear her just give us another warning before we voted, and for us to go against it, I just don't think it was a smart move," said Wyatt following Tuesday's vote. "I understand the School Board has their funds to pay their $55 million, which I was fine with, and I wish we could have just carved that portion out. I do agree with the superintendent and how they're trying to be responsible, but the bottom line is, they're getting reimbursed. And I know there's been talk about us getting our reimbursement as well, but at the end of the day, the comptroller has heeded some warnings to us, and again, we just decided to go into that dark night.
"We don't know where we are fiscally, because we haven't gotten to the end of the year. So for us to make these types of decisions, especially with our fiscal situation, I think it's just kind of not responsible. And again, I'm just one of eight now, actually nine because the mayor has agreed with it, but it's OK. I'm going to stand here and continue to speak my piece, because I think I have the expertise to talk in that way. And it's not against anybody or anything. It's just being smart about how we move forward."
The Mayor’s Office will continue to collaborate with the Buffalo Common Council, Buffalo Public Schools, and the Comptroller’s Office to ensure a smooth implementation of the sale of these bonds on behalf of the residents of Buffalo.