25-797 : 3Rd Quarter Gap

This report provides a comprehensive financial overview for the City of Buffalo, Buffalo Public Schools (BCSD), Buffalo Urban Renewal Agency (BURA), and Buffalo Municipal Housing Authority (BMHA) for the Third Quarter of Fiscal Year 2024-2025, ending March 31, 2025.

City of Buffalo General Fund:

• The City anticipates a modest surplus of $2.08M for the fiscal year ending June 30, 2025.
• Revenues: A $17.2M American Rescue Plan (ARPA) transfer reversed a Q1 deficit. Sales tax projections are $114.1M, exceeding budget by $648k.
• Expenditures: Personnel expenses are below budget due to vacancy controls, offsetting higher Police and Fire overtime. However, active/retiree health insurance is projected to exceed budget by $4.7M, and legal settlements by $6.7M.
• Employment: The General Fund has 334 total vacancies, with 48 uniformed Police and 48 uniformed Fire vacancies.

Buffalo Board of Education (BCSD):

• BCSD projects a $54.9M General Fund deficit for the full year, an improvement of $28.6M from the original budget. This deficit is attributed to the loss of $90M in ARP/ESSER funding and declining enrollments.
• Cash Flow: Net cash flow exceeded original projections by over $108M, with an anticipated year-end cash balance of $378.2M, $24.7M higher than projected.
• Capital Budget: A $94M Capital Budget Plan faces delays in a $54M bond offering and $40M district cash commitment.

Buffalo Urban Renewal Agency (BURA):

• BURA reports a $154,581 surplus for the quarter.
• Housing Projects: Significant affordable housing developments are underway, including:
  • West Side Homes (PUSH/BNSC): A $20M project for 49 affordable rental units (90% complete, June 2025 closeout).
  • Mt. Olive Senior Manor (703 E. Delavan): A $27.5M project for 65 senior affordable units (60% complete, June 2025 completion).
  • 875 Lafayette Avenue/630 Linwood Avenue (Belmont Housing): A $35.5M adaptive reuse project for 80 family rental units (0% complete, April 2026 completion).
  • Hope on Main (954 Main Street - Salvation Army): A $20.5M emergency family shelter (0% complete, December 2026 completion).

Buffalo Municipal Housing Authority (BMHA):

• BMHA reports a net operating income of $1,097,106, which is $416,107 below budget.
• Revenues: Total revenues are $2.58M (5.77%) over budget, primarily due to $1.73M in HUD PHA Grants, $2.02M from the sale of Fosdick field, and $111k in interest earned. This is partially offset by a $1.43M shortfall in Operating Subsidy.
• Expenses: Total expenses are $2.91M (6.7%) over budget. Key overages include $1.52M in Maintenance Contract Costs, $364k in LIHTC maintenance costs, $365k for unit turnaround due to high vacancies, and $2.08M for HAP/UAP/Section 8 costs. Payroll and fringe benefits are $792k under budget due to vacancies, and gas utilities are $427k under budget due to seasonal usage.