MAYOR BROWN RELEASES 2007-08 CITY BUDGET

 

BUFFALO – Mayor Byron W. Brown today released his recommended 2007-08 City Budget, which will be delivered to the Buffalo Common Council. 

 

“This is a good budget that combines prudent fiscal management, targeted investment for economic growth and quality of life, and it lays a solid foundation for a vital and vibrant City of Buffalo,” said Mayor Brown. “It grows below the rate of inflation, reduces residential and commercial property taxes by 4.62% and 9.2% respectively, and sets aside key funds to assist the City in continuing labor negotiations and, ideally, lift the wage freeze.”

 

Key highlights of the proposed Budget include:

“As I said in my State of the City Address in February, there are several key policy and fiscal initiatives that are critical to the City of Buffalo’s strength and vitality,” said Mayor Brown. “My recommended 2007-08 City Budget fulfills the promise of the State of the City speech with appropriations for these important and varied initiatives.”

 

Through law enforcement and other quality of life initiatives funded in this budget, such as the Administration’s new Safe Streets, Secure Neighborhood initiative, the Brown Administration will build on the success of the Buffalo Police Department’s reduction of criminal activity throughout the City that includes an overall 7% drop in crime during 2006 and, through March of this year a 23% drop in violent crime and an overall 4% reduction in crime versus the first three months of 2006.

 

The recommended 2006-07 Budget adheres to the three guiding principles the Brown Administration has followed since taking office in January 2006: strengthening economic development, improving the city residents’ quality of life and ensuring city government accountability and efficiency in the delivery of city services.

 

“Those core principles of my Administration are reflected throughout this budget,” stated Mayor Brown. “By remaining focused on these key issues we will make the City of Buffalo financially stronger, more attractive for economic growth and investment, and supportive of safe, secure and diverse residential neighborhoods.”

 

The Mayor’s proposed budget also includes:

“With recent bond upgrades from Wall Street ratings agencies, the City of Buffalo is moving, fiscally, in the right direction,” said Mayor Brown. “To maintain that momentum, my 2007-08 Budget calls for several new efficiency and financial practices that will further strengthen the City of Buffalo’s annual and out-year financial situation.

 

“I am recommending the creation of a fund balance policy to ensure the City of Buffalo has sufficient financial reserves – call it a ‘rainy day’ fund. But understand that this is prudent fiscal management for Buffalo. We have adopted recommendations from the Government Finance Officers Association where governments should set aside annually an unreserved fund balance between 1 to 2 months or 5% to 15% of normal general fund operating revenues. What that means in this Budget is the City of Buffalo reserves will equal 45 days or 15% of its operating expenses, which for the coming fiscal year equals $48 million dollars.

 

“Furthering my goal of strengthening our city’s economy and increasing my Administration’s fiscal responsibility, this Budget will increase the City’s taxing margin from 11% to just under 13%, which helps ease Wall Street’s concern that our revenue base is too highly leveraged. In addition, I am recommending through this Budget that the City codify provisions contained in the Buffalo Fiscal Stability Act requiring Buffalo to issue annually a balanced four-year financial plan. By adopting this action, we will be able to ensure and demonstrate the City’s commitment to long-term budget planning regardless of the provisions of the BFSA Act, meaning that this important financial tool will continue beyond the life of the Control Board.”

 

All of these actions will hopefully cause the Wall Street rating agencies to further upgrade the City of Buffalo’s credit rating.

 

The City of Buffalo is now entering the fourth year of a control board-imposed wage freeze. It is the Mayor’s top priority to settle its labor contracts and lift the wage freeze, so that the City’s workers can get the raises they deserve. Mayor Brown’s recommended budget sets aside $8.8 million dollars for incentives for labor as the city continues in contract negotiations.

 

“My Administration is also determined to resolve the drawn out Hickory Woods situation, by setting aside $5 million dollars in the City’s Reserve Fund for Claims and Judgments with the hope of settling homeowners’ claims and others that may arise from other litigation,” said Mayor Brown.

 

According to the City Charter, once the Mayor submits his recommended 2007-08 City Budget today to the Buffalo Common Council, the Council must return the Budget to the Mayor by May 22nd. The Mayor may then veto only additions made by the Council. By Charter, the Budget must be adopted by June 1st and becomes official on June 8th. 

 

In addition, the Buffalo Fiscal Stability Authority (i.e., the Control Board) also will receive today the Mayor’s recommended 2007-08 City Budget. The Control Board then provides a forum for public input on the recommended budget and then submits its recommendations by May 20th.