HomeMy WebLinkAbout92-0507S
1
COMMON COUNCIL
CITY HALL, BUFFALO N.Y.
SPECIAL SESSION
MAY 7, 1992
at: 2:30 P.M.
Present- David A. Franczyk, President Pro Tempore, and Councilmembers:
Amos, Bell, Fahey, Franczyk, LoTempio, Perla, Zuchlewski- 7.
Absent- Council President George K. Arthur, and Councilmembers: Bakos, Collins,
Coppola, Higgins, Pitts- 6.
No. 1
May 6, 1992
Mr. Charles L. Michaux,Ill
City Clerk
1308 City Hall
Buffalo, New York
Dear Mr. Michaux:
Pursuant to Section 30 of the Charter of the City of Buffalo, upon the
written request of five Council Members of the City of Buffalo, dated May 6,
1992, presented to you herewith, l. hereby call a Special Meeting of the Common
Council, to be held in the Council Chambers, City Hall, Buffalo, New York, on
May 7, 1992 at 2:30 p.m. for the.following.purpose:
To accept Mayor's budget recommendations and set Common Council budget hearing
schedule.
GEORGE K. ARTHUR
President of the Council
Hon. George K. Arthur
President
1315 City Hall
Buffalo, New York
Dear Sir:
WE, the undersigned, members of the Common Council, hereby request that
you call a Special Meeting of the Common Council, pursuant to Section 30 of the
Charter of the City of Buffalo, for the following purpose:
To accept Mayor's budget recommendations and set Common Council budget
hearing schedule.
WE request that this Special Meeting be held on May 7, 1992 at 2:30 p.m.
Norman Bakos
Dale Zuchlewski
David A. Collins
Clifford Bell
Rosemarie LoTempio
May 6, 1992
TO EACH MEMBER OF THE COMMON COUNCIL:
YOU ARE HEREBY NOTIFIED that, pursuant to Section 30 of the Charter of
the City of Buffalo, upon the written request of five Council Members, dated
May 6, 1992 the HON. GEORGE K. ARTHUR President of the Council, has called a
Special Meeting of the Common Council,to be held in the Council Chambers, City
Hall, Buffalo, New York, on May 7, 1992 at 2:30 p.m. for the following purpose:
To accept Mayor's budget recommendations and set Common Council budget hearing
schedule.
Yours very truly,
CHARLES L. MICHAUX, III
City Clerk
Pursuant to Rule .2 of the Rules of Order of the Common Council of the
City of Buffalo, each of the following named members of the Common Council, to
wit:
ARCHIE L. AMOS, JR. DAVID FRANCZYK
NORMAN M. BAKOS CARL A. PERLA, JR.
CLIFFORD BELL BRIAN HIGGINS
DAVID A. COLLINS ROSEMARIE LoTEMPIO
ALFRED T. COPPOLA JAMES W. PITTS
EUGENE M. FAHEY DALE ZUCHLEWSKI
hereby states that he received twenty-four (24) hours notice of the time and
purpose of the Special Meeting of the Common Council called to be held on May
7, 1992 at 2:30 p.m.
Dale Zuchlewski Alfred T. Coppola
Norman Bakos Carl A. Perla, Jr.
David A. Collins David Franczyk
Rosemarie LoTempio Eugene M. Fahey (Office Notified)
Archie L. Amos, Jr. Brian Higgins (Office Notified)
Clifford Bell James W. Pitts (Office Notified)
STATE NEW YORK)
COUNTY OF ERIE ) 55:
CITY OF BUFFALO
On this 6th day of May, 1992, before me, the subscribers, personally
appeared
Dale Zuchlewski, Alfred T. Coppola, Norman Bakos, Rosemarie LoTempio, Archie L.
Amos, Jr., Clifford Bell, Carl PerIa, Jr., David Franczyk
to me known to be the same persons described in and who executed the foregoing
instrument, and they duly and severally acknowledged to me that they executed
the same.
Richard Okoniewski
Commissioner of Deeds, in and
for the City of Buffalo, N.Y.
My commission expires 12/31/92
No. 2
MAYORS 1992- 93 CITY BUDGET MESSAGE
The budget I am recommending today is a critical document not
only for balancing the City's 1992-93 revenues and expenditures but for laying
the groundwork to put the City back on solid fiscal footing for years to come.
The City is in the midst of the worst fiscal crisis since I became Mayor
fifteen years ago. Over the last year and a half the City has been hit with
one fiscal setback after another. First there was the unprecedented mid-year
State aid cutback in December 1990, then pay raises awarded to union employees
that exceeded the budget appropriation for raises and more recently
announcements by both Standard and Poors and Moodys credit rating agencies that
they had downgraded their ratings on City of Buffalo credit.
However I can take comfort in knowing that this city has the ability and
tenacity to overcome such adverse conditions. I know it because we've done it.
When I became Mayor in 1977 the City faced a $19 million accumulated deficit,
the Hurd decision which forced us to lower the property tax levy by $12 million
and a lack of any meaningful economic development program. Through a
combination of State fiscal assistance from Governor Carey and the local
delegation, cost savings achieved through efficient management and productivity
improvements, and realistic budgeting, my administration produced thirteen
consecutive years of balanced budgets without the need to significantly raise
property taxes.
A combination of sacrifice and vision will be required to overcome the
current fiscal crisis. The sacrifice needs to be widespread to minimize the
impact on any one group. It will be shared by the City workforce who will see
their numbers shrink and wages frozen under this proposed budget. It will be
shared by the residents and property owners of Buffalo who will see taxes and
water rates increased to support the essential services the City provides and
it will be shared by the users of City services who will see increased fees for
such activities as golf courses, ice rinks and police and fire reports. It
will also be shared by those who have been the recipients of City funding in
the past such as the grants-in-aid which are eliminated in my recommended
budget.
This budget also needs to be visionary by making the needed structural
changes on both the revenue and expenditure side that will keep City budgets
balanced well into the future. Not all of the changes that need to be made can
be agreed upon or implemented in time to be included in this budget. That is
why it is necessary to develop a longer range plan.
I have expended a great amount of time and energy on this fiscal crisis
over the last several months. I have met with Your Honorable Body and
Comptroller Giambra on a number of occasions, the WNY State Legislative
Delegation, Governor Cuomo, representatives of both Standard and Poors and
Moodys and the private sector members of the Chamber of Commerce and Greater
Buffalo Development Foundation City Budget Task Force.
Today I recommend a budget that includes several suggestions that have
come from those various meetings. It is a plan that calls for tough decisions,
structural changes and a vision for the future.
The size and causes of the City's current year and 1992-93 budget
problems have been presented and explained extensively over the last several
months. I list them here for informational purposes.
CITY OF BUFFALO
1991-92 PROJECTED DEFICIT
(in millions)
$3.3 Shortfall of appropriated surplus - due to 1990-91 deficit
9.5 Cost of 1990-91 and 1991-92 raises in excess of
appropriation
5.0 State revenue sharing cut in Governor's 1992-93 proposed
budget
1.0 Sales Tax Shortfall
1.9 Overtime spending in excess of budget
2.6 Miscellaneous revenue shortfalls and excess spending
$23.3
- 3.4 Vacancy Savings
$19.9 TOTAL
CITY OF BUFFALO
1992-93 PROJECTED GAP
(in millions)
$13.6 Decrease in resources from prior years surplus
13.0 Raises in excess of 1991-92 appropriation:
Two year arbitration awards to uniform employees (6%, 4%,
3%)
Three years for non-uniform employees (5%, 0%, 3%)
13.0 Increase in pension costs
8.4 Reduction of State general purpose aid in Governor's 1992-
93 recommended budget
3.3 Health insurance increases
20.0 Deficit reduction plan
2.0 Rate Increases for Utilities and Refuse Disposal
1.4 Increase in debt service property taxes
- 1.4 Growth in revenues (1.0 sales tax and .4 utility tax)
$73.3 PROJECTED GAP
In short, the major causes of the 1991-92 projected deficit are the cuts
in State aid (totalling $25 million in two years) and the cost of unbudgeted
employee pay raises. The 1992-93 gap consists mainly of the same two factors
with the addition of an extremely large increase in employee pension costs
($11.5 million) and the loss of the availability of prior year surpluses as a
resource to balance subsequent budgets.
Today I present my plan for addressing these fiscal problems with an
explanation of each component of the plan.
1992-93 CITY OF BUFFALO DEFICIT REDUCTION PLAN
(in millions of dollars)
Gap: $17.6 Repayment (including interest) of 1991-92 deficit
notes
53.3 Projected 1992-93 operating budget gap
Total Gap$70.9
Resources:
$ 5.4 Reserve for deficit note repayment (from "spin-
up" of State aid from October to June, 1992)
12.2 Proceeds of water system sale dedicated to
deficit note repayment
6.7 Proceeds of water system sale used to balance
1992-93 operating budget gap
22.0 Property tax increase (19.3% increase)
4.5 Utility tax increase from 3% to 4%
2.2 Various fee increases
Budget Cuts:
8.5 10.5% workforce reduction
2.0 Reduction in streets overlay program
2.8 Elimination of City grants-in-aid
(2.8) Addition of Hurd bond payment (not in original gap estimate)
3.9 Elimination of salary adjustment fund for 3% salary
increases for 1992-93
3.5 Other expenditure reductions (including 1.3 in other than
salary departmental cuts, 1.5 in fringe benefits and .6 in
capital outlays and reserves.
0.0 Maintain current level contribution to Board of Education
0.0 Adopting a frugal but necessary Capital Improvements Program
0.0 Recommending the formation of a Buffalo Financial Plan
Commission
Total Resources & Budget Cuts
$70.9
Deficit Note Repayment ($17.6 million)
The developments mentioned above caused the need for the City to issue a
budget deficit note of $17.1 million in the current year which by law must be
repaid with interest of $555,000 in the City's 1992-93 fiscal year. I am
proposing this deficit note be repaid from $5.4 million to be reserved from the
State "spin-up" of its Emergency Financial Assistance to Eligible
Municipalities program from October 1992 to May 1992 and from $12.2 million of
the proceeds to be realized from the sale of the City's water system to the
Buffalo Water Finance Authority. The early receipt of the state aid coupled
with the expectation of receiving the same amount from the State during the
City's 1992-93 fiscal year enables the City to reduce its 1991-92 projected
deficit by $5.4 million. This multi-year change in payment date is made
possible by the cooperation of Governor Cuomo and our State Legislative
Delegation. The Governor's budget office has requested the City to develop a
long range plan that would consider moving this payment back to October,
perhaps by 1995. The other source of funds to repay the deficit note is the
proceeds from the sale of the water system.
Water Finance Authority ($6.7 million)
I recently decided to effectuate the creation of the Buffalo Water
Finance Authority by submitting appointments, for confirmation by Your
Honorable Body, of members to the Buffalo Water Board and the Buffalo Water
Authority. State law passed in 1985 created the Water Authority pending my
appointments to these two panels. I have opposed the creation of the authority
in the past because I did not agree that it was necessary. I was not convinced
that revenue bonds were selling at a lower interest rate than general
obligation bonds and I knew that the City was nowhere near its constitutional
borrowing limit.
However, conditions have changed and with the recently announced
downgradings of the City's credit rating it is likely that a newly created
Water Authority will get a better credit rating on its revenue bonds than the
City has on its general obligation bonds.
In addition, the creation of the Water Authority provides the City with
the opportunity to realize an infusion of funds necessary to address some major
fiscal concerns at a relatively small expense to City residents and begin an
aggressive capital improvement program for the City water system.
By selling the water system to the newly created authority for its
estimated net asset value the City can generate $25 million of new revenue.
The Water Finance Authority would raise the funds by selling a revenue bond
that could be paid back over twenty-five years. Water rates are increased by
14.5% in my 1992-93 recommended budget and would be expected to increase by
approximately 10% in 1993-94. After that rates would be expected to level off
with only nominal inflation related rate increases.
I am proposing to use the proceeds from the sale of the water system to
repay $12.2 million of the 1991-92 deficit note, $1.5 million to retire the
water enterprise fund's accumulated deficit and $6.7 million to help close the
City's 1992-93 budget gap. The balance of $4.6 million should be used as
necessary to offset any additional 1991-92 City or Water enterprise fund
deficits or if that is not necessary, as a future resource to stabilize
property tax or water rates.
Property Tax Increase ($22 million)
My 1992-93 recommended budget includes a $136 million property tax levy,
a 19.3% increase over the current year. This increase will provide an
additional $22 million in badly needed revenue to the City. The increase will
cost the average residential property tax payer $125 more annually or $10.45
per month.
One of my chief accomplishments as Mayor has been to keep City property
taxes low to help retain and attract homeowners and businesses to our City.
The 1991-92 property tax levy was only 28% higher than the levy fourteen years
before when I became Mayor.
Because the City is under the homesteading program, the rate increase for
the homestead group (homeowners) will be only 17.6% while the non-homestead
group (commercial) will have a 26.3% increase in its property tax rate. The
rate per thousand dollars for homestead property is $27.60 and non-homestead,
$43.17.
Under the homestead option, adopted by the City pursuant to State law in
1987-88, the percentage of the levy collected from the homestead and
non-homestead groups is set at 44.3% and 55.7%, respectively in 1992-93. An
increase in the total assessed valuation of the homestead group and a decrease
in the non-homestead group results in the non-homestead group receiving a
higher rate increase than homestead property taxpayers.
The $22 million increase is the amount the City could have increased the
current year tax levy without exceeding the State's constitutional property tax
limit. Lower equalization ratios provided by the State Division of
Equalization and Assessment have increased this margin to allow for a $37
million property tax increase in 1992-93. I reject the idea of raising the
property tax levy by more than $22 million this year. However, Your Honorable
Body should be aware that this option is available to you if you choose to
increase spending over my recommended level.
Utility Tax Increase ($4.5 million)
Another gap-closing measure in my recommended budget is an increase in
the City's utility tax from 3% to 4%. The State legislative delegation and
Governor Cuomo have indicated they will provide the required State
authorization to enable the City to increase this tax. It will provide an
additional $4.5 million next fiscal year if enacted by Your Honorable Body
before June 1, 1992. The utility tax increase will cost the average homeowner
$21.22 annually. I have always favored the utility tax as a revenue source for
the City because it is spread over a wider base than the property tax and it
includes built in inflationary growth.
Various Fee Increases ($2.2 million)
Councilmember Amos has proposed the City implement a full cost recovery
program. This would identify the cost of providing various services and the
user of each service with the intent of maximizing the practice of having those
who benefit from a service be the ones who pay for it. Mr. Amos' proposal
should be referred to the Buffalo Finance Plan Commission to be established.
This budget reflects increases in a number of fees.
The following chart summarizes my recommendations for increases in
various fees and the resultant revenue increase provided.
Revenue Increase Fee Change
$500,000 Interest Rates on Delinquent property taxes from 12% to 18%
500,000 Parking meter rates from $.25 to $.50 per hour
248,000 Billboard license fee (Resolution by
Councilmember Collins)
100,000 Transfer from Parking Enterprise Fund
105,000 $10 charge for various police and fire reports
200,000 Across-the-board 5% C.P.I. increases
113,000 Increased charge for birth and death certificates
93,000 Increased golf fees
60,000 Increased ice rink fees
40,000 Increase dog license by $2.50
30,000 $15 fee for checks returned for insufficient funds
25,000 $50 fee for police escort at funerals
20,000 $100 license fee for alarm companies and $5
permit for residence alarms
20,000 Doubling certificate of occupancy inspection
charges
15,000 Licensing journeymen electricians and
increased fee for journeymen plumbers
24,000 Increase fee to $3.00 a foot for vehicle limit
permits
20,000 Double license fee for private parking lots
30,000 Minimum $300 charge for parades and race
permits issued by police
45,000 $50 team fee per season for adult baseball and
softball teams
6,500 $1.00 transportation fee for senior citizen van
service
15,000 Incr ase charge for inspection of street cuts made by
public utility companies
7,000 Increase charges for rezoning applications
$2,216,500 TOTAL
I am forwarding to Your Honorable Body the legislation required to
implement the above fee increases except for the golf fee increase, the across
the board 5% C.P.I. increase previously approved, the billboard license fee
already on the Council agenda, and the increase in birth and death certificates
previously approved by the State that went into effect in October, 1991.
Workforce Reduction ($8.5 million)
My recommended 1992-93 budget was balanced through major expense
reductions as well as revenue increases. In fact, the 1992-93 City general
fund budget of $233.3 million (net of the $17.6 million deficit note repayment)
is 1.9% less than the 1991-92 budget of $237.9 million. The 1992-93
recommended budget requires a cut of 386 City positions, of which 144 currently
are filled. This is a 10.5% reduction of the 3,682 positions in this year's
budget.
The following chart shows by department the number of jobs that have been
deleted in my recommended budget:
SUMMARY OF VACANT & FILLED JOB CUTS BY DEPARTMENT
# OF JOBS
DPTMNT/ FUNDED # VACANT # FILLED TOTAL % OF '91-92
DIVISION 1991-92 JOBS CUT JOBS CUT JOBS CUT JOBS CUT
COMMON COUNCIL
66.5 0.5 0.0 0.5 0.8%
COUNCIL PRESIDENT
5.0 0.0 0.0 0.0 0.0%
MAYOR & EXECUTIVE
43.0 5.5 1.5 7.0 16.3%
AUDIT & CONTROL
121.0 6.0 7.0 13.0 10.7%
CIVIL SERVICE
20.0 4.0 1.0 5.0 25.0%
ADMINISTRATION & FINANCE
98.0 3.0 7.0 10.0 10.2%
LAW
33.0 3.0 0.0 3.0 9.1%
ASSESSMENT
51.0 4.0 1.0 5.0 9.8%
GENERAL SERVICES
56.0 0.0 6.0 6.0 10.7%
POLICE
1,167.0 54.0 63.0 117.0 10.0%
FIRE
986.0 85.0 16.0 101.0 10.2%
INSP & COMM REVITALIZATION
90.5 8.0 2.0 10.0 11.0%
PUBLIC WORKS
293.0 23.0 10.0 33.0 11.3%
HUMAN RESOURCES
113.0 10.0 10.0 20.0 17.7%
PARKS
109.0 9.0 2.0 11.0 10.1%
STREETS
405.02 6.0 15.0 41.0 10.1%
COMMUNITY DEVELOPMENT
25.0 1.0 2.4 3.4 13.6%
TOTAL3682.0 242.0 143.9 385.9 10.5%
The chart shows that nearly two thirds of the positions being deleted are
vacant. This is because departments have not been filling jobs as they became
vacant through the year. This has been the practice throughout my
administration. Since I became Mayor the City workforce has been reduced from
4,377 to 3,422 annual employees. This is a reduction of 955 filled positions
or 22% of the workforce. This was done through attrition, without a single
layoff in my fifteen years as Mayor.
My recommended budget would eliminate 144 filled jobs bringing the total
workforce reduction to 1,099 or 25% of the January 1, 1978 level. For laid off
employees I am recommending two new accounts: Severance Health Care to provide
six months of health care budgeted at $207,000 and Severance Vacation for lump
sum payments of vacation entitlements budgeted at $192,000. Unemployment
insurance increases from $410,000 to $1,060,000 which includes the additional
cost for workers laid off by this budget.
Much thought has been given to where and how to make these personnel
cuts. Department heads have worked closely with me and the budget division to
meet the objective of balancing the budget while continuing to provide the
maximum level of service possible under such constraints. Services have been
consolidated and streamlined where possible. Department heads have been asked
to find ways to provide services at a lower cost.
I am recommending a budgeted attrition (salary savings) requirement of 2%
in the police and fire departments and 1% in all other departments. The
elimination of jobs and layoffs in this budget make it unrealistic to expect
that the 1991-92 budgeted attrition requirement of 3 1/2% can be applied to the
1992-93 budget. It would be fiscally irresponsible to raise the attrition
requirement in my recommended budget.
Examples of what various departments will have to do are described below.
a.) Common Council
The chart shows no significant reduction in the number of positions in
the budgets of the Common Council and Council President. This is because the
City Charter does not allow me to change these budget requests.
Although I have sent a letter to Council President George Arthur asking
him to reduce the Council budget request to assist the City in closing its gap,
I received no reply to my letter. I again urge the Council to reduce its
budget and help to shoulder the burden of budget cuts that currently is being
borne by all City departments except the Common Council.
b.) Executive Department
In the Mayor's Office, the Deputy Mayor position has been funded for only
one-half of the year. The Mayor's Summer Youth budget has been reduced by 50%
to $100,000. When I became Mayor the Mayor's Summer Youth budget was $250,000.
A filled Senior Stenographer's position in the Zoning Board of Appeals
has been eliminated and members of the Zoning Board will have their salaries
cut by 50%.
Five vacant positions are cut from the Mayor's Office for Senior
Citizens, necessitating an increased dependency on volunteer help. No senior
centers will close, however, and no transportation services are cut.
c.) Audit and Control
The Department of Audit and Control loses seven filled and six vacant
positions. Funding for legal services is cut by $80,000. The mail room is
moved to the Department of General Services.
d.) Civil Service
Four vacant positions are cut in Civil Service and the Commissioners'
salaries are reduced by 50%.
e.) Administration and Finance
The Division of Budget loses one filled and one vacant position for an
18% cut. Also, all overtime pay (about $14,000) has been eliminated in Budget.
In Labor Relations, funding is eliminated for the Director's position and
a filled Research Aid position. A consolidation of personnel functions to
oversee employee rights and benefits is accomplished by moving staff from
General Services and the Advocacy Office for People with Handicapping
Conditions to Labor Relations.
Two filled Meter Mechanic positions and two filled Laborer II positions
are eliminated in the Division of Parking Enforcement. The Division's budget
includes $100,000 to convert parking meters to $.50 per hour charge and $50,000
to move the Parking Meters and Enforcement function from the Delavan Armory to
189 Tonawanda Street. The Delavan Armory is owned by the State and in need of
major repair work. Consolidating Parking Meters and Enforcement with the
Towing and Storage function at 189 Tonawanda Street will save money and
increase efficiency.
Tellers from the Parking Violations Bureau are consolidated into the
Division of the Treasury and two Teller's positions (one vacant and one filled)
are cut.
f.) Law
Two vacant positions are cut and two Assistant Corporation Counsel
positions are downgraded to the title of Municipal Attorney (entry level
positions). The amount budgeted for outside legal work is reduced from
$600,000 to $375,000.
g.) Assessment
Four filled temporary Assessor Trainees are eliminated as of March 31,
1993 and four vacant jobs are deleted.
h.) General Services
Personnel assigned to worker's compensation, unemployment benefits and
insurance duties are transferred to Labor Relations to consolidate personnel
functions. However, General Services will assume responsibility for the mail
room.
In the Division of Inventory and Stores, the cutting of four filled
positions will require shift changes and reducing hours or closing a garage.
i.) Police
In the Police Department, it is necessary to eliminate 117 positions
including 63 filled uniformed positions. In order to provide needed police
services with the reduced workforce it is absolutely necessary that the police
precinct minimum manning requirements of the City Charter be eliminated. These
minimum manning rules often require the Commissioner to deploy manpower where
it isn't needed and prevent the efficient use of available police personnel.
It may also be necessary to begin the use of one man patrol cars and
subsequently negotiate the impact of such use with the Police Union.
j.) Fire
In the Fire Department, I am recommending a reduction of sixteen filled
and 85 unfilled positions. This reduction will require the closing of Engines
18, 28, 30, and Ladder 1 and the layoff of the employees formerly assigned to
the fireboat. The Fire Commissioner assures me that even with the closing of
these houses there will be safe and satisfactory fire department response times
in the City of Buffalo. I am also recommending the elimination of two vacant
Deputy Fire Commissioners.
k.) Inspections and Community Revitalization
Eight vacant and two filled positions are eliminated with no significant
structural changes in the department.
l.) Public Works
In the Division of Engineering eight vacant and eight filled jobs are
eliminated. This means a 25% reduction in Street Repair Workers, elimination
of 24 hour servicing of traffic signals, and no longer staffing the Ferry
Street bridge through the entire year.
The Building's Division loses 17 vacant jobs (12%) including tradesmen
and cleaning workers. This will make the maintenance of City buildings a
difficult task.
m.) Human Resources
The Human Resources' administrative staff is reduced by four filled
positions. The Veterans' Office was eliminated and the Advocacy Office for
People with Handicapping Conditions consolidated into the personnel functions
of the Labor Relations Division.
The Division of Urban Affairs was incorporated into the general office
and the Director's position eliminated.
Positions in the Division of Youth were reduced to reflect the cut in
State youth aid.
n.) Parks
Nine vacant and two filled positions are eliminated. Bennett Beach will
not open this summer and Lovejoy and Cazenovia pools will be opened alternately
on a monthly basis.
o.) Streets
The Streets Department is losing 26 vacant and 15 filled jobs and
overtime funding is cut substantially.
The budget includes $160,000 to lease sufficient vehicles to move all
pick up of garbage to a morning schedule.
The ash and garbage and snow plowing/street cleaning functions have been
consolidated to provide more flexibility in work assignments.
The reduction in manpower mandated by the recommended budget may require
either a reduction in the number of trucks per district or a reduction in the
number of workers assigned to each truck from 3 to 2.
p.) Community Development
Two filled positions have been eliminated. This will result in a
reduction from two people to one person being responsible for administering the
capital improvements budget. The salary of the Director of Development has
been reduced by 40% because of an agreement that allows the incumbent to work
on a part-time basis.
Reduction in Streets Overlay Program ($2.0 million)
The Commissioner of Public Works recommended reducing his 1992-93
departmental budget by deleting the $2 million appropriation usually included
for the streets overlay program. The Commissioner will use State Consolidated
Highway Improvement Program (CHIPS) funds for this purpose in 1992-93. CHIPS
funding is ordinarily earmarked for major street reconstruction projects. A
determination will need to be made in future year budgets about using CHIPS
funding for the annual overlay work required.
Elimination of City Grants-In-Aid ($2.8 million)
Cultural and public benefit grants funding under the 1977 amendment to
the Erie County Sales Tax Revenue Distribution Agreement is clearly a
responsibility of Erie County. In fact the Distribution Agreement states "it
is desirable and necessary for the County of Erie to adequately support the
Buffalo and Erie County Public Library as well as to make contributions for the
support of various cultural and public benefit services, some of which have
heretofore been partially funded by the City of Buffalo" and "to provide for a
greater share of the revenues to be distributed to the County of Erie, thereby
enabling the county of Erie to appropriate 11.4% of the annual yield from sales
tax revenues throughout the County to those purposes."
In the 1992 County budget the County provided $6.1 million less than the
"11.4% of the annual yield from sales tax revenues" formula should have
generated for libraries and cultural and public benefit services.
Unfortunately, 1992 is typical of the County's underfunding of cultural and
public benefit organizations in recent years.
I cannot, in good conscience, recommend City funding for grants-in-aid in
the same budget I am compelled to recommend layoffs of City employees. My
1992-93 budget reflects a $2.8 million decrease of the 1991-92 appropriation
for grants-in-aid.
Debt Service on Hurd Property Tax Refunds (-$2.8 million)
This budget includes an appropriation of $2.8 million not included in
earlier budget gap projections for debt service on the bonds issued to provide
nearly $23 million in refunds in December 1991 to property taxpayers involved
in the Hurd property tax case. The court had ruled that taxes were levied
beyond the constitutional limit from 1974 to 1978. This cost is offset by a
contribution of $970,000 from New York State as their share of the solution.
The bonds will be paid over a fifteen year period.
Elimination of Salary Adjustment Fund ($3.9 million)
I am recommending no salary adjustment fund for fiscal 1992-93 in keeping
with my position that the City's current fiscal condition requires a wage
freeze for all City workers. As I have stated in the past, if the Council
believes my recommendation on salary increases is unrealistic, the budget
process is the time to make an adjustment. The Council should not recommend or
impose future contract settlements for which amounts have not been budgeted for
such settlements. Unfortunately, the Council ignored a similar warning I made
in last year's budget message and awarded an unbudgeted pay raise. The result
was a City budget deficit and the beginning of the fiscal crisis with which we
are currently dealing. The fiscal well-being of the City requires that you not
make the same mistake again.
Considering past wage increases and the current economic environment it
is not unreasonable to request City employees to accept a wage freeze. The
five year financial plan of the City of Philadelphia calls for a wage freeze
through 1996 as well as union concessions on holiday and paid leave time.
Other Expenditure Reductions ($3.5 million)
All other appropriation requests have been closely scrutinized and
recommended cuts from earlier projection amount to $3.5 million. These include
a.) $1.3 million in departmental items (such as the $100,000 cut in the Mayor's
Summer Youth Program, the $70,000 cut from the salt account in the Streets
department, the $40,000 cut from Inventory and Stores' gasoline account and
$155,000 cut in various building and equipment repair accounts in the
Department of Public Works, as well as general cuts in travel and membership
dues and periodical accounts), b.) $1.5 million in fringe benefit accounts
related to job cuts and a lowering of the estimated pension contribution rates
from earlier projections, and c.) $600,000 cut from capital outlay and capital
reserve accounts.
All of the items mentioned above total $70.9 million and constitute my
plan to close the 1991-92 and 1992-93 City general fund budget gaps.
Board of Education
As in prior fiscal years, my 1992-93 recommended budget includes the
entire amount of resources available to the Board of Education including the
Board's general fund of $312 million and the Special Projects fund supported by
State and federal grants totalling $36.5 million. The total of these two funds
amounts to $348.5 million or over $7,000 for each of the school systems 49,400
projected number of enrolled students.
My recommended budget includes a continuation of the current level of
$45.55 million of property taxes being provided to the Board of Education. The
Board's receipts of Erie County Sales Tax proceeds is estimated to increase by
$300,000 over the 1991-92 budgeted amount. State education aid is budgeted at
$239 million in the general fund an increase of $1.1 million. This estimate
was provided by Superintendent Albert Thompson based on his review of the
adopted state budget.
The appropriation I am recommending for the Buffalo Board of Education
general fund budget is $311,916,000 million, an increase of $1.4 million.
The City Budget Division did a thorough analysis of the Board's 1992-93
budget needs and has indicated to me that my recommended appropriation can
provide the Board of Education with enough funding to meet the requirements of
the U.S. District Court and all other mandates with which the Board must
comply.
It should be noted, however, that the Budget Division's analysis assumes
the Board of Education will freeze employee salaries for the 1991-93 period,
the same policy I am recommending for City employees. It assumes also that the
Board will cut employee positions and will make other cuts where it is possible
to do so, as I have done on the City side of the budget.
Capital Improvements Budget
My recommended 1992-93 Capital Improvements Budget totals $16.1 million
and follows closely the recommendations of the Citizens Advisory Committee on
Community Improvements. As always, I appreciate the effort and guidance
provided by this committee.
I considered it important not to allow the difficult fiscal climate to
cause the City to skip a year of having a capital improvements budget. I feel
deferring such projects would only result in a greater need for such
expenditures in future years. I strongly recommend however that projects
included in the capital improvements budget be restricted to those that are
essential for public purposes, safety or will result in future cost savings.
Projects in my capital improvements budget include:
$230,000 Police Records Management System-Phase II
700,000 Consolidation of South Buffalo Police Precincts-
Phase I
(Both recommended by the International
Association of Chiefs of Police report).
650,000 To purchase an amphibious fire vehicle for
protection of the City's waterfront
3,804,000 For various street reconstruction projects
2,295,000 Other public building reconstruction and
improvement projects
250,000 Environmental remediation of Kingsley Park
200,000 Redevelopment of the Broadway-Fillmore Area
2,260,000 Various school building improvement projects,
including $500,000 for Handicapped Access
Improvements
5,700,000 Various Water facilities improvements
$16,089,000
Formation of A Buffalo Financial Plan Commission
The Chamber of Commerce/GBDF City Budget Task Force Report #2 recommended
the formation of a Buffalo Financial Plan Commission to develop a three to five
year financial and management plan for the City by October 1, 1992. I concur
with this recommendation and am budgeting $25,000 for anticipated expenses of
the Commission.
I want to thank all the members of this task force, especially co-chairs
Robert Wilmers and Charles Mitschow for the time and resources they have
already committed to analyzing the City's fiscal condition and their
willingness to continue to serve the City in an advisory capacity.
The report of the task force calls for an aggressive schedule to develop
a financial plan by October 1, 1992. In order to meet that schedule I will be
meeting with members of the task force soon to develop the format and make-up
of the commission so that it can begin its work by the beginning of June.
X. Summary
My recommended 1992-93 City budget is a solid plan for closing the huge
$70.9 million City budget gap. The gap-closing measures I have recommended, if
enacted by Your Honorable Body, will put City finances back into balance. They
follow my objective of using a reasonable mix of revenue and spending measures
and of minimizing "one-shot" or non recurring type of solutions to balance the
1992-93 budget.
Although the measures I have recommended are not easy to implement, they
must be enacted for the good of the City. The revenue increases are absolutely
necessary because there is a limit to how much the City workforce can be cut.
On the other hand, cuts in City positions had to be made, including layoffs,
because the budget could not be balanced through revenue increases alone.
The credit rating agencies and others have expressed concern that the
1992-93 gap not be closed with one-shot revenues that will require replacement
in future budgets. The only one-shot revenue used to balance the $53.3 million
portion of the 1992-93 gap that applies to the City's 1992-93 O and M budget
(excluding the one-time repayment of the 1991-92 deficit note) is $6.7 million
used from the proceeds of the sale of the water system. Generally, the
structural deficiencies causing the 1992-93 O and M budget gap were balanced
through structural measures.
Your Honorable Body must resist any temptation to use gimmickry such as
deliberately shorting appropriation accounts to find funding for programs and
positions you desire to fund. This would be destructive to the fiscal health
and reputation of the City. Surely, our fiscal practices are being closely
scrutinized by public and private interests as we go through this difficult
period. If there are restorations that you desire to make or alternative ways
of balancing the budget I will cooperate with you to the extent your
suggestions are fiscally responsible changes.
My recommended budget is the means by which the City of Buffalo can begin
to regain its hard-earned and deserved reputation for balanced budgets and
fiscal integrity. I ask that you adopt my 1992-93 budget as recommended and
work with my administration, the Comptroller and the Buffalo Financial Plan
Commission for the good of the City of Buffalo.
Sincerely,
James D. Griffin
No. 3
FROM THE PRESIDENT OF THE COUNCIL REVISED 5/6
SCHEDULE OF 1992 COUNCIL BUDGET HEARINGS 1:00 P.M.
SUPPORTING
BUDGET DETAILS
O& M-CAPTL OBJ. REV.
PERS.
MONDAY -MAY 11TH CHAIR: COPPOLA
9:00 A.M.
COMMON COUNCIL
PRESIDENT OF THE COUNCIL
CITY CLERK
9:15 A.M.
MAYOR - EXECUTIVE
-VITAL STATISTICS
-ZONING BOARD
-SENIOR CITIZENS
-STADIUM & AUDITORIUM
-PILOT FIELD STADIUM
-MEMORIAL AUDITORIUM DIV.
9:3OA.M.
CORPORATION COUNSEL
CIVIL SERVICE COMMISSION
ASSESSMENT
MONDAY -MAY 11TH CHAIR: HIGGINS
10:00 A.M.
ADMINISTRATION & FINANCE
-BUDGET
-F.C.A.
-MGMT. SERVICES
-LABOR RELATIONS
-PARKING ENFORCEMENT
-TREASURY
MONDAY -MAY 11TH CHAIR: HIGGINS
2:00 P.M.
GENERAL SERVICES
-PURCHASE
-INVENTORY & STORES
MONDAY -MAY 11TH CHAIR: BELL
2:30 P.M.
STREET SANITATION
PARKS - GENERAL OFFICE
-PARKS DIVISION
-RECREATION
MUNICIPAL HOUSING AUTH.
WEDNESDAY -MAY 13TH CHAIR: AMOS
9:00 A.M.
POLICE
FIRE
WEDNESDAY -MAY 13TH CHAIR: ZUCHLEWSKI
2:00 P.M.
COMPTROLLER
-AUDIT
-ACCOUNTING
-DATA PROCESSING
-REAL ESTATE
BOARD OF ELECTIONS
WEDNESDAY -MAY 13TH CHAIR: PERLA
6:00 P.M. ART GALLERIES/FINE ARTS ORGANIZATIONS
-EL MUSEO FRANCISCO OLLER Y DIAGO RIVERA
-MOLLYOLGA ART CLASSES
-C.E.P.A.
-JUST BUFFALO LITERARY CENTER
-NIAGARA FRONTIER FOLK ART COUNCIL
-QRS ARTS FOUNDATION
-BIG ORBIT GALLERY
WEDNESDAY -MAY 13TH CHAIR:PERLA
6:30 P.M. PERFORMING ARTS ORGANIZATIONS/ETC
-ALLEYWAY THEATER
-SHAKESPEARE IN DEL. PARK
-INNER CITY BALLET
-EMPIRE STATE BALLET
-BUFFALO COMMUNITY TELEVISION
-THEATER OF YOUTH COMPANY (TOY)
-UJIMA THEATER COMPANY
7:00 P.M. -
-BUFFALO ENSEMBLE THEATER
-MAELSTROM PERCUSSION ENSEMBLE
-YOUNG AUDIENCES OF WNY
-COMMUNITY MUSIC SCHOOL
-GEMINI DANCE
-PICK OF THE CROP
THURSDAY -MAY 14TH CHAIR: FRANCZYK
9:00 A.M.
PUBLIC WORKS ____ ____ ____ ____ ____
-ENGINEERING
-BUILDINGS
-LICENSES & PERMITS
-WATER
INSPECT.& COMM. REVITAL.
-HSG.& PROP. INSPECT.
-C0MM. REVITALIZATION
-TASK FORCE ON HOUSING
THURSDAY -MAY 14TH CHAIR: PITTS
2:00 P.M. CIVIC BODIES
LARGE CULTURAL/CIVIC ORGANIZATIONS
-HISTORICAL SOCIETY
-ALBRIGHT-KNOX ART GALLERY
-PHILHARMONIC
-KLEINHANS
-MUSEUM OF SCIENCE
-STUDIO ARENA
-SHEA'S O'CONNELL
-ZOOLOGICAL SOCIETY
-GBAC 1993 WORLD GAMES
-BUFFALO PLACE
-BUFFALO NAVAL PARK
2:30 P.M. MUSEUM/LIBRARY
-DR. LORD'S LIBRARY
-MARINE HISTORICAL SOCIETY
3:00 P.M. ART GALLERIES/FINE ARTS ORGANIZATIONS
-ARTS COUNCIL BFLO./COUNTY
-WNY INST. ARTS IN EDUCATION
-HALLWALL5 GALLERY
-ADAM MICKIEWICZ
-BURCHFIELD ART CENTER
-SQUEAKY WHEEL
THURSDAY -MAY 14TH CHAIR: BAKOS
6:00 P.M.
BOARD OF EDUCATION
FRIDAY -MAY 15TH CHAIR: LoTEMPIO
9:00 A.M.
HUMAN RESOURCES
-DEMONSTRATION PROJECTS
-HANDICAPPING CONDITIONS
-SUBSTANCE ABUSE
-URBAN AFFAIRS
-EMPLOYMENT & TRAINING
-YOUTH
-VETERANS HELP. VETS
FRIDAY -MAY 15TH CHAIR: LoTEMPIO
10:00 A.M.
COMMUNITY DEVELOPMENT
-PLANNING
-DEVELOPMENT
FRIDAY -MAY 15TH CHAIR: COLLINS
2:00 P.M. CIVIC BODIES (CONTINUED)
PERFORMING ARTS ORGANIZATIONS (CONTINUED)
-AMHERST SAXAPHONE SOCIETY
-CHOPIN SINGING SOCIETY
-GREATER BUFFALO OPERA COMPANY
-BUFFALO GUITAR QUARTET
-KAVINOKY THEATER
2:30 P.M. SOCIAL SERVICE ORGANIZATIONS
-LEGAL AID BUREAU
-LEGAL SERVICES FOR ELDERLY
-NEIGHBORHOOD LEGAL SERVICES
-OFFICE OF URBAN INITIATIVES
-INTERNATIONAL INSTITUTE
-WNY INTERNATIONAL VISITORS
-PARENTS ANONYMOUS
-CITIZEN COMMUNITY DEVELOPMENT CORP.
3:00 P.M. YOUTH SERVICE ORGANIZATIONS
-BOY'S AND GIRL'S CLUBS OF BUFFALO
-BOY SCOUTS OF AMERICA
-GIRL SCOUT COUNCIL OF BUFFALO
-BE A FRIEND PROGRAM
-JUNIOR LEAGUE OF BUFFALO
-NATIONAL INNER CITIES YOUTH
-CAMPFIRE COUNCIL
-HUHBOLDT ThCA
-FRANCISCAN CENTER
3:30 P.M. ELDERLY SERVICE ORGANIZATIONS
-COUNCIL OF SENIOR CITIZEN CLUBS
-WILLIAM/EMSLIE SENIOR CENTER
-LOS TAINOS SR. CITIZENS CENTER
-CLUB 400 SENIOR CITIZENS
-GRACE MANOR NURSING HOME
FRIDAY -MAY 15TH CHAIR: ARTHUR
4:00 P.M. NEIGHBORHOOD/COMMUNITY ORGANIZATIONS
-COMMUNITY ACTION ORGANIZATION
-HOUSING ASSISTANCE CENTER
-ALLENTOWN ASSOCIATION
-WESTSIDE COMMUNITY SERVICES (MASS.)
-MASTEN HUMP SERVICES
-POLISH COMMUNITY CENTER
-SOUTH BUFFALO COMMUNITY ASSOCIATION
-CLARSSON CENTER
-FATHER BELLE CENTER
-PARKSIDE COMMUNITY ASSOCIATION
-WESTSIDE NEIGHBORHOOD HOUSING
4:30 P.M.
-AFRICAN/AMERICAN CULTURAL CENTER
-NEIGHBORHOOD INFORMATION CENTER
-SENECA/BABCOCK COMMUNITY CENTER
-VALLEY COMMUNITY ASSOCIATION
-A.B.L.E.Y.
-OLD FIRST WARD COMMUNITY CENTER
-BAILEY/DELAVAN COMMUNITY CENTER
-LANGSTON HUGHES INSTITUTE
-ELLICOTT HUMAN SERVICES
-INDUSTRIAL HERITAGE COMMITTEE
-E.BUFFALO COMMUNITY OWNSESHIP
-NATIVE AMERICAN COMMITTEE
-E. BUFFALO INST. FOR AM. STUDIES
5:00 P.M.
-NATIONAL CONF. CHRISTIANS AND JEWS
-SALVATION ARMY
-LANDMARK SOCIETY
-E. BFLO. PLAN. & DEVELOPMENT COUNCIL
-COMMODORE PERRY PROGRAMS
-BROADWAY/FILLMORE AREA BUSINESS
-BUFFALO-RZESZOW SISTER CITIES
-F.L.A.R.E.
-KENSIGNTON/BAILEY
-NORTHLAND/KELLY GARDENS
-C.R.U.C.I.A.L
-HISPANICS UNITED
-CONCERNED ECUMENICAL MINISTRY
5:30 P.M.
DISABLED SERVICE/SELF-IMPROVEMENT ORGANIZATIONS
-SILVER WHEELS FOOTBALL
-NIAGARA FRONTIER RADIO READING SERVICE
-NIAGARA FRONTIER VOC. REHAB. CENTER
-LITERACY VOLUNTEERS
-COMM. SERV. FOR DEVELOPMENTALY DISABLED
FRIDAY -MAY 15TH CHAIR: FAHEY
6:00 P.M. HUMAN SERVICE ORGANIZATIONS
-SOUTH BUFFALO C0MM, TABLE
-ASSN. FOR SICKLE CELL DISEASE
-MEALS ON WHEELS
-W.N.Y. UNITED AGAINST DRUGS
-DEACONESS MEDICAL CENTER
-BUFFALO HEARING AND SPEECH
-ST. ADALBERT'S
-WELLNESS INSTITUTE
-CHILD CARE COALITION
-E.P.I.C.
-HOSPICE OF BUFFALO
-BENEDICT HOUSE
-RHODE ISLAND FOOD CENTER
-FOOD FOR ALL
7:00 P.M.
FIRE-CRIME PREVENTION/SERVICE ORGANIZATIONS
-FIRE SURVIVAL CENTER
OTHER ACTIVITIES/ETC
-BUFFALO COMM. SCHOOL IMPROVEMENT
-FRIENDS OF OLMSTEAD PARKS
-1490 ENTERPRISES INC.
-THEODORE ROOSEVELT INAUG. SITE
-FRIENDS OF THE BUFFALO RIVER
-OTHERS
No. 4
Adjournment
At 2:45 P.M. Mr. Fahey moved to adjourn until Monday, May 11th
at 9:00 A.M., at which time the Coninon Council will resolve into the Committee
of the Whole, for the purpose of considering the Mayor's Budget Recommendations
for 1992/93.
Seconded by Mr. Bell.
Charles L. Michaux III
City Clerk