25-1873 : Annual Comprehensive Financial Report (ACFR) - Fiscal Year 2024-2025 Financial Results

The City of Buffalo's Annual Comprehensive Financial Report (ACFR) for Fiscal Year ending June 30, 2025, indicates a total primary government net position of $(589,873,000), an improvement of $81,283,000 from the prior year. While governmental activities saw a net position increase of $89,603,000, business-type activities experienced a decrease of $8,320,000, with the Solid Waste and Recycling Fund reporting a $(64,269,609) deficit and the Water System's net position decreasing by $4,413,000 due to reduced federal funding.

Key Financial Status:

• The General Fund's unrestricted fund balance decreased by $20,672,650 to $42,342,468, falling short of the City Charter's 30-day expenditure minimum for the Emergency Stabilization Fund.
• The City's bond ratings remain A1/A+/A, but S&P Global and Fitch Ratings have shifted the long-term outlook from Stable to Negative.
• Significant long-term liabilities include a total OPEB obligation of $1,237,486,000 and a net pension liability of $266,143,000.

Budgetary Performance:

• General Fund actual revenues were $56,985,000 above the final budget (driven by unanticipated interest earnings and American Rescue Plan Act federal aid).
• However, actual expenditures were $58,935,000 above the final budget, primarily due to increased public safety costs, employee benefits, and transfers out of ARPA funding.
• Total outstanding encumbrances are $98,038,250, with $13,612,203 in the General Fund currently unsupported by adequate fund balance.

Future Initiatives & Contingencies:

• Operational priorities for FY2025-2026 include the sale of Parking Ramps and Rapp Lots, implementation of an Occupancy Tax, reauthorization of the Tribal Compact Agreement, and developing a plan to replenish fund balances.
• The City faces probable litigation claims of $13,200,000 and reasonably possible claims ranging from $14,000,000 to $44,000,000.
• A subsequent event on September 30, 2025, involved issuing $29,433,750 in bond anticipation notes maturing September 30, 2026.