25-1741 : Comptroller's Correspondence Requesting Use of the Committed Fund Balance

The Comptroller's office is formally requesting authorization to use the Committed Fund Balance (Emergency Stabilization Fund), also known as the Rainy-Day Fund, to cover an operational deficit in the Fiscal Year 2024-2025 financial performance. This deficit, identified by the city's independent auditor, Drescher & Malecki, stems from overestimated revenues (occupancy tax, service charges, fines) and underbudgeted expenditures (overtime, legal settlements). The projected shortfall exceeds available funds in the Assigned and Unassigned Fund Balance Accounts, which currently have zero balances. This action is necessary to close out the FY 2024-2025 financial results as per City Charter § 20-17-3. The Comptroller highlighted concerns about the City’s ability to sustain long-term financial projections due to increasing fixed costs like pensions, OPEB, and debt service, which constitute about one-third of the annual budget.