Michael John

This document presents the Buffalo Fiscal Stability Authority's Preliminary Budget and Financial Plan for the period 2027-2030. It outlines budgetary assumptions, forecasted revenues from state aid, sales tax, and investment income, and projected operating expenditures including staff-related costs, professional fees, and general office expenses. The plan details the Authority's role in financial control and oversight of the City of Buffalo and its Covered Organizations, emphasizing fiscal responsibility and risk assessment within an advisory period. It also covers the budget process and reporting requirements.

The board meeting encompassed the adoption of the fiscal year 2026-27 budget and the 2027-2030 financial plan for the Authority. Discussions included an analysis of the City of Buffalo's adopted budget for 2026-27, specifically addressing reductions in real property tax levies, capital outlay adjustments, and revenue management from parking ramp sales and fine collections. Additionally, the Board reviewed the third-quarter financial reports for the City of Buffalo, the Buffalo City School District, the Buffalo Urban Renewal Agency, and the Buffalo Municipal Housing Authority, while evaluating the ongoing financial risks and economic factors impacting the City's fiscal stability.

The meeting commenced with the Chair calling the annual and regular meeting to order, acknowledging the passing of former board member James Frisela, and welcoming new board member Mike Francini, a former commissioner. The minutes of the previous meeting were approved. A public comment period followed, featuring testimony from Kurt Moore of Carver Plant Nursery regarding issues with water maintenance fees for vacant lots, his initiatives involving sustainable urban agriculture, and concerns about conflicting city department actions. Staff reports detailed operational metrics: Operations Manager Justin Shivaban noted a doubling in main breaks repaired compared to the previous year, an increase in service line replacements, and reduced hydrant flushing due to reassignment to leak detection. He also reported on a 20% increase in sewer camera footage due to equipment repair, but a decrease in preventive sewer cleaning due to staff resignations and retirements. Rebecca Calvin provided updates on capital projects, noting aeration winding down at Per Bush, progress on the fluoride project with a targeted March 19th startup date, and a pause on CIP lining, with work resuming in March for the 2024 contract. Stormwater projects were discussed, including three projects expected to go for ESC review, and final design status for dam projects (Wrenchler and Basic Creek).

The meeting commenced with introductions and an acknowledgement of an absent board member. A significant portion of the discussion involved a public commentary regarding a federal court ruling on water fluoridation and urging the board to refuse authority to the city regarding the water supply. The board addressed the correspondence concerning the ruling and scientific reports. Financially, year-to-date revenues were up $2.15 million compared to the prior year, though monthly collections for July were down due to timing issues and collection challenges with specific clients. Expenditures were almost $2.7 million higher year-to-date, primarily due to increased ramp-up in equipment and vehicle capital expenditures. The establishment of a new $2.05 million line of credit, previously an audit comment concern, was finalized. Financial analysis highlighted higher aged receivables and lower-than-budgeted year-to-date revenues, contrasting with expenditures closing under budget. Discussions also covered debt service costs, which remained relatively consistent, and overtime analysis showed higher figures than the prior year. The board expressed concern over a significant due-to/due-from balance of $2.4 million, which they intend to resolve by year-end to free up cash flow, including funds needed to address the interest on the new line of credit.

The meeting commenced with a public hearing regarding the Line Factory Commerce LLC project, which involves commercial space development complemented by a 10-year pilot program, distinct from a previously approved residential component. Key discussion points for the commercial aspect included plans for mixed-use commercial/flex space, potential interest from quasi-governmental or non-profit organizations, and exploring a shared communal kitchen concept. The Board approved closing the public hearing and subsequently approved the minutes from the December 18, 2020, board meeting. A resolution authorizing the Line Factory Commerce LLC project was approved, which includes authorizing proceedings for the project and approving the form of the pilot agreement, mortgage reporting tax exemptions, and sales and use tax exemptions. The Board also approved the Administrative Funding Agreement with the City of Troy for $100,000 to cover staff and space costs for the previous year (2020), with the 2021 funding agreement forthcoming. Additionally, the Board addressed annual record-keeping items, including board evaluations and fiduciary forms, and deferred discussion on a sales tax exemption application for the Clark House project until new business. Updates were provided on the Saint Augustine School pilot project, indicating that the 34 apartments are progressing well.