25-729 : CComptroller - FY 2025-2026 Budget Response

This document is the City of Buffalo Comptroller's assessment of the Administration's Recommended Budget for Fiscal Year 2025-2026 and the Four-Year Financial Plan (2026-2029). The Comptroller expresses significant concerns about the budget's reliance on uncertain revenue sources and under-budgeted expenditures.

Key Concerns and Observations:

• Total Recommended Budget: $622,074,415.
• Uncertain Revenue Sources: The budget assumes $26.5 million from the sale of City-owned parking ramps/lots and $3.4 million from a proposed hotel occupancy tax, both requiring New York State Legislature approval, which is currently uncertain.
• Tax Levy Increase: An 8% increase in the tax levy (to $184,482,900) has been approved, overriding the state's 2% tax cap.
• Overtime Expenditures: The budget proposes a significant reduction in overtime to $24,595,690, despite actual net overtime costs of $38,160,681 as of April 23, 2025.
• Underestimated Costs: Pension and health insurance costs for active and retired employees may be underestimated.
• Fund Balance: The entire Unassigned Fund Balance of $3,642,466 is projected to be used, leaving a $0 balance, which violates the City Charter's Fund Balance Policy.
• Four-Year Financial Plan: The plan lacks sufficient detail for a thorough review, relying on summarized revenue projections and departmental-level expenditures.
• Other Uncertain Revenues: Tribal Compact Casino Revenue ($11 million) and Medicare D Reimbursement (budgeted at $14,250,000 but already exceeded) also present uncertainties.

The Comptroller urges the Administration and Common Council to seek additional recurring revenue streams and revisit existing contracts for better terms.