Council told $6.5 million Ortiz settlement paid; controller and council to consider certificate of necessity and July bond sale for capital projects

City officials told the Buffalo City Council that a $6.5 million payment in the Ortiz legal settlement was made from funds the city had set aside earlier and that council review of a certificate of necessity will be requested at the finance committee.

A city representative said the payment was made last week and that the city had placed the cash in an interest-bearing account in 2023; now that a judgment exists, the cash will be applied to satisfy the settlement. The controller’s office identified the funding source as savings in police, fire and civilian pension accounts attributable to vacancies.

Council members were asked to approve a certificate of necessity at the finance committee so the city can formally recognize the payment and fund transfers. Staff also presented a separate annual capital debt payment fund request (to set aside property-tax funds for fiscal-year 2026 capital debt payments) that will be sent to finance.

On broader capital finance timing, the controller’s office said the city plans to go to the bond market in July. Officials said the timing reflects a desire to use the most current budget numbers when structuring municipal debt; staff described prior year changes to the calendar and said the city is coordinating with the Board of Education and administration on the bond size and timing. The controller’s office said capital projects funded by the sale would move forward after market issuance.

Council discussion included questions about where the settlement funds came from and whether savings were known at budget time; staff said vacancies and the timing of state numbers affect final figures. Council members asked whether capital projects would be delayed; staff said projects would move forward once market money is secured but that schedule implications mean some work will be more likely to occur in the following construction season.

Separately, Council Member Naza described a contract amendment for the nonprofit Say Yes that reallocates internal budget lines to expand school-based job-readiness supports; staff said the total grant amount did not change and asked for authorization to finalize the amended scope so the organization can execute the work.

No final council votes on the certificate of necessity or bond issuance were recorded at the meeting; items were routed to finance or committee as appropriate.