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Buffalo finance committee: December cash flow OK but single audit flags $38M fund-balance shortfall
Summary
Deputy controller told the finance committee the city closed December with $42.7 million in cash but the single audit found available fund balance about $38 million below the city policy target, prompting calls for monthly reporting and additional savings.
Deputy Controller Delano Dowell told the Buffalo City Committee on Finance that the city began December with about $49,800,000, received nearly $135,000,000 during the month and disbursed roughly $142,000,000, leaving an ending cash balance of $42,665,000. "We did file December 2024 cash flow report," Dowell said, and highlighted higher sales-tax and property-tax receipts compared with December 2023.
The committee also reviewed the single audit, which identified a shortfall against the city's fund-balance policy. "Available fund balance should equate to 30 days of prior year actual expenditures ... but right now, it's at $12,328,000," Dowell said, noting the policy target would be about $50.7 million "which is a difference of almost $38,000,000." The finding drew sustained questions from council members about whether current and projected revenues will close the gap.
Acting Commissioner of Administration and Finance Nausworthy said the administration has taken immediate steps to limit spending and generate savings, including hiring controls and account freezes. "Vacancy control measures and budget modifications are projected to [reduce] expenditures by at least $15,000,000," the acting commissioner said, pointing to a mix of vacancy savings and suspended nonessential purchases.
Council members pushed for more frequent reporting. "If we're in a fiscal crisis and we're saying we're going to wait to every quarter, I guess we're not really in a fiscal crisis," one member said, urging a concise monthly summary after the budget cycle. The acting commissioner cautioned that the budget office has limited staff capacity and currently issues quarterly comprehensive reports, though targeted inquiries and the city's Open Book Buffalo portal can provide more up-to-date figures.
The committee asked staff to provide comparative analyses for personnel and pension costs, and to detail the administration's plan to replenish the available fund balance to policy levels. No final appropriation decisions were taken; items were tabled or moved to the full council as required by committee procedure.
