Council reviews $4 million transfer to cover legal settlements, including Walker payout

Buffalo City officials asked the council to approve a $4 million intra-budget transfer to fund prior-year legal settlements and several public-works change orders.

The administration said the request would move $4,000,000 into prior-year legal-settlement accounts, including a $3,700,000 payment identified as the second installment of the Walker settlement. The administration said the first payment of $5,000,000 was paid late last year and that the total Walker settlement is about $8,700,000; staff said the June 30 deadline for completing payments made having funds available a priority.

Why it matters: Council members pressed for specifics about where the transfer funds would come from and how the administration identified lines that could be reduced. With the Walker payment due within the fiscal year, the transfer affects the city’s operating flexibility and the claims committee’s pending business.

City fiscal staff described the transfer as the result of a comprehensive review of departmental budgets. “I reduced, comprehensively, a lot of the departmental accounts,” the acting commissioner said, explaining that staff had frozen some accounts and identified supplies and services lines that were under‑spent and could be shifted to cover settlements. Deputy Controller Kylie told the council, “the funding is available, to process these requests based off your approval.”

Council discussion and details - The administration said the $4,000,000 transfer will primarily fund the second Walker payment ($3,700,000) and several smaller settlements that fall in the current fiscal year. Staff said other transfers include DPW change orders tied to parks work and a Fulton Park professional‑services change order funded from capital/planning funds. - Council members asked for line‑by‑line detail. The administration pointed to the agenda attachment (transfer item 25‑354 on the staff agenda, linked to staff agenda items 83–85) that lists source and destination budget lines. Staff said the transfers were taken from supplies and services accounts rather than from vacant positions. - Councilors asked about timing. Staff said once funding is in place, Corporation Counsel coordinates the payments; the administration characterized the remaining work as administrative once funds are approved.

Context and fiscal outlook - The administration warned the council the city is likely to exceed the originally adopted claims budget by next fiscal year, estimating an approximately $5,600,000 variance by July if current trends continue. Officials said the Walker settlement is the primary driver of this year’s spike. - The administration also noted these transfers are distinct from new claims that may arise, and that they are working with Corporation Counsel to ensure payments and claim processing proceed correctly.

What council recorded: The agenda included budget‑transfer items (staff agenda references were discussed and the transfers were placed on the council agenda for approval). The council discussion focused on source lines, timing and the need to defend the municipal corporation where appropriate.

Ending The council moved these budget‑transfer and settlement items onto the agenda for consideration; staff said the transfers are budgeted and available and that Corporation Counsel will process payments after council approval.