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Comptroller flags unencumbered ARPA balances; council presses administration for clarity

4040127 · January 21, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

At a Buffalo Common Council session, the comptroller27s letter about ARPA account balances prompted a lengthy exchange with administration officials who said funds were obligated for property tax arrears and other projects. Council members pressed for clearer interdepartmental communication and a faster spend-down timeline.

The Buffalo Common Council discussed a comptroller27s letter that questioned whether several American Rescue Plan Act (ARPA) account balances were properly encumbered, prompting the administration to explain accounting details and promise further interdepartmental follow-up.

The comptroller27s office told the council it had seen available balances in the city27s Munis accounting system that did not appear encumbered, a concern that motivated the office to request written clarification. Comptroller staff said at the meeting that "the only thing we can see is what's in Munis" and that the letter sought detail on whether those balances were obligated under ARPA rules.

Acting Commissioner Nosworthy, speaking for the administration, said the account balances the comptroller identified have justifications and in some cases legal or programmatic reasons for remaining in place. He cited a $311,000 balance in an account tied to a contract for work at 509 Michigan that is affected by litigation and may require selecting a new vendor; he referred to Treasury Department guidance that allows limited use of remaining funds to cover contract cost increases. He also described a cultural-institution support line that had an identified balance that changed during contract change orders and a largely zero balance in an "unallocated" account.

Council members pressed the administration for more detail about a roughly $2.4 million to $2.5 million item the administration described as funds set aside for property-tax arrears. Several council members said residents and callers had asked why they had not seen clear public information about programs to assist households with tax arrears or utility bills. A council member argued that the public27s trust erodes when the city appears to lack coherent answers and said council offices need factual documents to give constituents.

Comptroller staff said the office did not have the administration27s background materials and therefore relied on what Munis showed; that limited view is what prompted the letter. Comptroller staff also said their concern included the timing: some arrears have existed for years, and the office wanted to know why large draws were still being processed shortly before reporting deadlines.

Neither side described a formal vote; instead, the meeting produced commitments to exchange documents and hold interdepartmental conversations. Acting Commissioner Nosworthy told the council the administration27s target is to have most ARPA funds spent down by fall 2026, with a focus on accelerating disbursements beginning January 2026. Council members said they want clearer, earlier communication and more aggressive spend-downs so residents are not left waiting.

Council members asked for the specific Treasury guidance referenced by administration staff and for an itemized list showing which invoices and programs will draw down the property-tax arrears allocation. Comptroller staff reiterated they had filed the letter to get that clarification and to reconcile what Munis shows with the administration27s records.

The meeting closed the discussion with an agreement that administration and the comptroller27s office would continue reconciliation outside the council chamber and provide the council with the documentation needed to respond to constituents.

Ending: Council members said they will continue to request biweekly updates on ARPA disbursements and urged the administration to circulate the Treasury guidance and project-level spend plans so council offices can relay accurate information to residents.