Buffalo, N.Y. (WBEN) - Buffalo Mayor Chris Scanlon is calling on the City Comptroller, Barbara Miller-Williams, to act on past failures to issue Bond Anticipation Notes (BANs) that are delaying more than $110 million in capital investments throughout the city.
These initiatives as part of the mayor's capital budget were approved by the Buffalo Common Council back in December 2024. Mayor Scanlon says the comptroller's inaction has put a number of bold and strategic investments in health and public safety, infrastructure, cultural institutions and public schools on hold.
"These are shovel ready projects, ready to go that need to be invested in. But more than that, they are promises. Promises made to the people of Buffalo. Promises that we will improve lives, generate jobs and transform neighborhoods, and I intend to keep my promises. However, not a single shovel is in the ground on one of these projects. And why? Because the City of Buffalo Comptroller has failed the bond out for any of these projects, including the Bond Anticipation Notes necessary to unlock additional investment and move these projects forward," said Mayor Scanlon on Wednesday.
Scanlon says this is not about availability of funding or project readiness in the city. It is solely about inaction on the comptroller's part, which he calls unacceptable to the progress that Buffalo needs.
"We're in the month of August already. We've now begun the process on next year's capital budget. There's not a shovel in the ground in the current capital budget year. And each day, inaction costs us. It costs us jobs. It costs us the improvements upon projects throughout the City of Buffalo. And it adds costs to the projects that are in line," Scanlon said.
Among the initiatives the city is at risk of falling behind on due to the alleged inaction of the Comptroller's Office includes:
- $6.1 million in essential upgrades for police and fire departments;
- $3.2 million in support for cultural institutions;
- $134-plus million for major streetscape projects;
- $9.85 million for infrastructure projects;
- $870,000 for local community centers.
Mayor Scanlon also points to the Buffalo Public Schools' recent loss of its ability to bond out with the ending of the Joint Schools Construction Board. That's why the city has worked collaboratively with the Buffalo School Board and the Schools Superintendent to make sure they don't fall behind on their capital needs.
"Part of that $110 million plan was $55 million for the Buffalo Public Schools and school facility upgrades, including lead abatement, roof replacements and other structural work. This work is 97% reimbursed by New York State. The other 3% being covered by the schools," Scanlon noted.
Scanlon says there has been a lot of back-and-forth with his office and the Comptroller's Office, but continues to remain perplexed over the inaction of Miller-Williams.
"The comptroller is stuck on the fact that there's a $28 million cap. I have tried to stress to her repeatedly that we are not borrowing long-term anything in excess of that cap. I am very well, painfully aware of the City of Buffalo's financial situation, and I would not want to take on any additional burden that's going to impact the taxpayers," Scanlon said. "Again, there's a $28 million cap. There's $82 million other than that that we want to bond out for, but again, the only thing that's going to land on the taxpayer shoulders is that $900,000, the cost of issuance, which I said I would be happy to move in under that $28 million cap. So therefore long-term, we would be borrowing nothing in excess of that cap. All that other money is reimbursed through the state and federal projects, or the state with the schools and they would cover the other three remaining percent in their project as well.
"So communication has been there, we've been very clear about what we want to do. How we feel it impacts the City of Buffalo in a positive way without impacting the city of Buffalo or the taxpayers in a negative way."
In a written response, Miller-Williams says in accordance with Section 20-21 of the City Charter, the Comptroller is responsible for assessing the City’s fiscal condition and setting the maximum amount of capital debt that may be prudently incurred. The Fiscal Year 2024-25 Comptroller’s Estimate and Report, developed with guidance from the Government Financial Officers Association, City’s Capital Debt management advisors, and the City’s bond rating agencies, clearly sets the debt cap at $28 million.
"Fiscal responsibility is not optional, it’s a requirement under the City Charter and a necessity for Buffalo’s long-term financial health,” said Miller-Williams in her statement. "This debt cap ensures that we remain on solid financial ground while meeting the City and Buffalo Public Schools most urgent capital needs."
Despite multiple requests and good-faith efforts to collaborate with the Administration and Buffalo Public Schools, including in-person meetings and several written correspondences requesting their revised Priority List for the Capital Improvement Plan (CIP), Williams says no such list has been provided by either entity to date. Consequently, the Comptroller will move forward with the issuance of a $7 million Bond Anticipation Note (BAN) to fund the capital projects for Busti Avenue, Cars Sharing Main Street, and Phase I of Jefferson Avenue, all of which are supported by Federal funds.
"This decision was not made lightly," stated Miller-Williams, "But my obligation is to the taxpayers and citizens to safeguard the City’s long-term fiscal health. I remain open to working with the Administration and BPS if they choose to bring forward a Capital Budget request that does not exceed $28 million debt cap and complies with the standards we are legally and fiscally bound to uphold."
The Comptroller adds she remains available to re-engage in constructive dialogue to move forward responsibly and is committed to collaborating with the Administration, Buffalo Common Council Members, Buffalo Public Schools, the members of the Buffalo Fiscal Stability Authority and all interested citizens and taxpayers to assist with formulating solutions to address the City’s financial matters.