26-21 : 2025 Popular Annual Financial Report

The City of Buffalo's Popular Annual Financial Report (PAFR) for the fiscal year ending June 30, 2025, highlights significant fiscal challenges. The General Fund ended with an operational deficit of $14.8 million. When excluding $39.5 million in ARPA funds used for operations, the underlying shortfall increases to $54.3 million, indicating structural budget issues as federal stimulus funds have expired.

Key expenditure areas exceeded budgets, including overtime costs ($17.1 million over budget), duty disability expenses ($8.7 million over budget), and judgments/settlements ($15.1 million over budget). Health insurance costs were $14.9 million over budget.

The Solid Waste and Recycling Fund has cumulative losses of $28.3 million owed to the General Fund. The City's total fund balance declined from $117.8 million to $103.0 million at year-end. The report emphasizes the need for continued attention to long-term financial planning and structural budget challenges to ensure fiscal sustainability.