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HomeMy WebLinkAboutCity of Buffalo - Public Financial Report1 Popular Annual Financial Report FOR FISCAL YEAR ENDED JUNE 30, 2021 Barbara Miller-Williams COMPTROLLER BUFFALO C ITY OF N EW Y ORK Photo by: David Granville 1 A MESSAGE FROM THE CITY COMPTROLLER Dear City of Buffalo Residents and Taxpayers: As the Chief Fiscal Officer of our city, I am pleased to present to you the City of Buffalo Popular Annual Financial Report (PAFR) for the year ending June 30, 2021 in my ongoing effort to inform City of Buffalo Residents and Taxpayers about the state of the City of Buffalo finances. The PAFR is specifically created to communicate the financial condition of the City. This report is written in a user-friendly manner to increase public awareness and understanding of where City revenues come from and where dollars are spent. Additionally, the PAFR is designed to summarize the financial activities of the City’s funds that are reported in more detail in the Annual Comprehensive Financial Report (ACFR). For a complete copy of our ACFR, as well as Internal Audits and Budget Responses, please visit the Comptroller’s website at: www.buffalocomptroller.com Government Financial Officers Association of the United States and Canada (GFOA) has given an award for “Outstanding Achievement in Popular Annual Financial Reporting” to the City of Buffalo for fiscal year ended June 30, 2020. The City is honored to have received this award for the last eight PAFR’s. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government entity must publish a Popular Annual Financial Report, whose contents follow program standards of creativity, presentation, understandability and reader appeal. To the best of our knowledge, the information presented herein is accurate in all material respects and presents fairly the financial position and results of operations for the fiscal year ending June 30, 2021. Financial information within this report is derived in large part from the City’s Fiscal Year 2021 independently audited financial statements that are prepared in accordance with General Accepted Accounting Principles (GAAP). The budgetary impact of the COVID-19 pandemic continues to be a significant hurdle for Buffalo. However, we remain optimistic about our financial recovery. Figures presented later in this report indicate Buffalo returning to a strong fiscal position. In addition to providing information on City finances, government operations, economic progress, business climate, education system, cultural attractions and demographics this report also helps demonstrate what makes Buffalo a great place to live, work and raise a family. We hope you find this report informative and we welcome your comments and questions. Thank you for your interest in our City and please enjoy the Report! Sincerely, Barbara Miller-Williams, Comptroller 2 ABOUT THIS REPORT 1 A Message From the Comptroller 2 About This Report 3 Business Economic Development 5 Education & Culture 6 Demographics 7 City Department Listing 8 City Finances TABLE OF CONTENTS ELECTED OFFICIALS COMPTROLLER BARBARA MILLER-WILLIAMS TERM: 4 YEARS RESPONSIBILITY: CHIEF FISCAL OFFICER CONTACT INFO: CITY HALL, RM 1225 BUFFALO, NY 14202 716-851-5255 “I WILL CONTINUE TO PROTECT, REPORT & STRENGTHEN THE CITY’S FINANCES” CITY COUNCIL MEMBERS TERM: 4 YEARS RESPONSIBILITY: LEGISLATIVE AUTHORITY CONTACT INFO: CITY HALL, RM 1413 BUFFALO, NY 14202 716-851-5105 MAYOR BYRON W. BROWN TERM: 4 YEARS RESPONSIBILITY: CHIEF EXECUTIVE OFFICER CONTACT INFO: CITY HALL, RM 201 BUFFALO, NY 14202 716-851-4851 COUNCIL MEMBERS DISTRICT TELEPHONE DARIUS G. PRIDGEN, PRESIDENT ELLICOTT 716-851-4980 CHRISTOPHER P. SCANLON, PRESIDENT PRO TEMPORE SOUTH 716-851-5169 DAVID A. RIVERA, MAJORITY LEADER NIAGARA 716-851-5125 BRYAN BOLLMAN LOVEJOY 716-851-5151 JOEL P. FEROLETO DELAWARE 716-851-4553 JOSEPH GOLOMBEK, JR. NORTH 716-851-5116 MITCH NOWAKOWSKI FILLMORE 716-851-4138 ULYSEES O. WINGO MASTEN 716-851-5145 RASHEED WYATT UNIVERSITY 716-851-5165 North University Delaware Masten Niagara Ellicott Fillmore Lovejoy South 3 BUSINESS & ECONOMIC DEVELOPMENT UPCOMING PROJECTS, INVESTMENTS AND GRANT FUNDING WITHIN THE CITY OF BUFFALO • 61 Terrace Building is a recently approved nine-story building with 300 indoor parking spaces and 148 apartments. Construction expected to start in Spring, 2022 with estimated costs of $45 million. • The Statler is an 18-story, 850,000 square feet, $150 million renovation that will include 600 indoor parking spots, 334 apartments and 183hotel rooms. • Spectrum is developing a 4,500 square foot building being built at 2228 Delaware Avenue. This will be a place for people to order services, make payments and exchange cable equipment. Expected store completion date late December, 2021. • Central Terminal is a $200 million renovation project where the first phase of rail renovation will be completed in 2022. • Albright-Knox Art Gallery is a 50,000 square foot addition to the existing gallery, with estimated project costs at $168 million and an anticipated completion date in 2022. • The City continues to offset expenditures and augment public initiatives with grant funding, including a 2021-2022 Gun Involved Violence Elimination (GIVE) Grant. This brings $623,844 to reduce incidences of gun violence through enhanced patrol and preventative measures. • A 2021-2026 US Treasury allocation of American Rescue Plan Act funds in the amount of $331.4 million will support the City’s response to the impact of COVID-19 and the City’s efforts to contain COVID-19, protecting the community, residents, and businesses. • Jefferson Health, Wellness & Housing is a 3-story, 13,563 sq ft mixed-use redevelopment building with medical and wellness space, 44 upper floor apartments, 23 parking spaces, landscaping, lighting and utility improvements. • Broadway-Fillmore neighborhood received $10 million in State funding from the Downtown Revitalization Initiative. Funding will be used to transform the area into vibrant centers of activity that offer high quality of life and attract redevelopment, business, jobs and housing. 4 BUSINESS & ECONOMIC DEVELOPMENT THE CITY OF BUFFALO, NEW YORK'S ECONOMY CONTINUES TO GROW DESPITE THE CURRENT PANDEMIC AS THE CITY PROCEEDS ON THE PATH PUSHING FOR MORE ECONOMIC DEVELOPMENT, ENTREPRENEURIAL GROWTH, ATTRACTING NEW BUSINESSES AND EXPANDING THE GROWTH OF CURRENT BUSINESS, IT IS BECOMING A DESTINATION CITY FOR ALL. THERE HAS BEEN NEARLY $6.7 BILLION IN NEW ECONOMIC INVESTMENT SINCE 2012, WHICH IS PROJECTED TO CREATE 12,000 NEW JOBS. Largest Public Companies M&T Bank Moog National Fuel Gas Gibraltar Industries Astronics Columbus McKinnon Sovran Self Storage Computer Task Group Synacor Financial Institutions, Inc. Largest Private Companies Rich Products Corporation Delaware North Basil Ford Dealerships Employer Services Corporation John Danforth Company Stampede Presentation Products Jack Hunt Coin Broker Curbell Stevenson Environmental Services Rosina Food Products Largest Employers Erie County Medical Center Wegmans Geico Roswell Park Catholic Health M&T Bank University at Buffalo Tops Markets Erie County Seneca Gaming 5 COLLEGES & UNIVERSITIES The Buffalo area is home to 21 colleges & universities dedicated to academic excellence and a commitment to life long learning opportunities for students throughout the region. Among institutions within the SUNY system, there are 394,220 students enrolled in the Buffalo area. EDUCATION UNIVERSITY AT BUFFALO CANISIUS COLLEGE NIAGARA UNIVERSITY ALFRED STATE BUFFALO STATE COLLEGE FREDONIA STATE COLLEGE D’YOUVILLE COLLEGE DAEMEN COLLEGE ALFRED UNIVERSITY MEDAILLE COLLEGE ST. BONAVENTURE UNIVERSITY HOUGHTON COLLEGE HILBERT COLLEGE EMPIRE STATE COLLEGE VILLA MARIA COLLEGE ERIE COMMUNITY COLLEGE NIAGARA COMMUNITY COLLEGE GENESEE COMMUNITY COLLEGE JAMESTOWN COMMUNITY COLLEGE BRYANT & STRATTON COLLEGE TROCAIRE COLLEGE ALBRIGHT-KNOX ART GALLERY BUFFALO MUSEUM OF SCIENCE BURCHFIELD PENNEY ARTS CENTER AFRICAN AMERICAN CULTURAL CENTER BUFFALO PHILHARMONIC ORCHESTRA SHEA’S PERFORMING ARTS CENTER BUFFALO & ERIE COUNTY NAVAL PARK CENTRAL TERMINAL BUFFALO CITY HALL THE BUFFALO HISTORY MUSEUM HISPANIC HERITAGE CULTURAL INSTITUTE CHILDREN’S MUSEUM BUFFALO IRISH CENTER EL MUSEO LT COL MATT URBAN CENTER CENTRO CULTURALE ITALIANO DI BUFFALO BOTANICAL GARDENS CULTURAL SITES & MORE The Buffalo area is home to world-renowned architecture, museums and other cultural CULTURE 6 DEMOGRAPHICS INCOME & HOUSING Median Household Income $40,843 Total Housing Units 136,350 Persons Below Poverty Level 28.8% POPULATION Total City Population 278,349 Median Age 33 LABOR STATISTICS Private Worker 64.2% Government Worker 16.1% Self-Employed 5.3% Not for Profit Companies 14.4% EDUCATION BACKGROUND High School Graduate 27.8 Some College, no degree 19.3% 2 Year Degree; Some College 9.8% 4 Year College Graduate 28.7% Graduate Degrees 11.6% EMPLOYMENT INDUSTRY Private Worker 64.2% Government Worker 16.1% Self-Employed 5.3% Not for Profit Companies 14.4% 7 CITY GOVERNMENT Administration, Finance, Policy Urban Affairs Includes Division of Budget, Treasury, Collections and Purchase Audit & Control Led by the Comptroller, Includes Division of Accounting, Audit and Investment & Debt Management Assessment & Taxation Responsible for the preparation and mailing of city property tax and sewer rent bills Common Council The legislative body of the City, which also oversees the City Clerk's office Community Services Includes Division of Youth Service and Senior Services Executive Department Includes Office of Strategic Planning & Division of Citizen Services and Real Estate Police Department Maintain public order and safety, prevent and investigate criminal activities Public Works, Parks & Streets Responsible for maintenance and capital improvement to infra- structure and buildings, street lighting, sanitation, snow removal, an parks maintenance Human Resources Responsible for all personnel functions, including benefits and train- ing programs, for 2,914 City employees Law Prosecutes and defend all actions and proceedings brought by or against the City. Also responsible for drafting and reviewing all contracts involving the City Parking Responsible for parking meters and City owned parking ramps Permits & Inspection Conducted 57,700 inspections and 2,914 demolitions in 2021 Management Info. Systems (MIS) The City’s information technology department provides computers and internet services Fire Department Preventing, combating and extinguishing fires to protect lives, property and the environment DEPARTMENTS 8 CITY FINANCES Where Does The Money Come From? Property Taxes generate a good majority of the City’s revenue at 28.7%. Year-over-increase of $990,0401 due to increase collections in Fiscal Year 2021. Class I Utility Tax and Other Non-Property Tax exceeded budget by $558,508 Intergovernmental Charges represent 63.3% of the City’s total revenue and includes Federal Aid of $43,080,625, State Aid of $188,816,270 & Local Sources and Other of $98,742,408 Investment Interest earnings includes revenue earned from the investment of idle City funds throughout the year in accordance with the City’s investment policy. License, Permit, Rentals, Fines and Service Charges includes revenues from Licenses and Permits of $4,555,790 Fines of $8,489,213 & Charges for Services of $12,418,659. Miscellaneous includes proceeds various other funding sources. General Funds Revenues by Source 2021 Property taxes, Assessments & Other Tax Items - 28.7% $ 149,666,888 Utility and Other Non-property Tax Items - 2.3% $ 12,188,508 Intergovernmental Charges - 63.3% $ 330,639,303 Investment Interest - 0.3% $ 130,652 License, Permit, Rentals, Fines and Ser- vice Charges - 4.9% $ 25,463,662 Miscellaneous - 0.8% $ 4,157,340 Total Revenues $ 522,246,353 9 CITY FINANCES Where Does The Money Go? General Government Support totaled $58,051,336 in 2021. Administrative costs for various Government Departments (Legislative, Executive, Audit & Control, Law, Assessment, Public Works, Management Information Systems, Human Resources and Other) Public Safety includes all operational costs for Police and Fire Departments. 32.4% of total expenditures Streets & Sanitation includes all operational costs for Public Works, Parks and Streets. 2.4% of total expenditures Economic Assistance & Opportunity includes all operational costs for Executive & Community Services 0.5% of total expenditures Culture and Recreation includes all operational costs incurred by Public Works, Parks & Streets, Community Services & Other. 1.7%% of total expenditures Health and Community Services includes all community outreach services. 0.4% of total expenditures General Funds Expenditures by Function 2021 General Government Support - 11.9% $58,051,336 Public Safety - 32.4% $157,914,797 Streets and Sanitation - 2.4% $11, 730,753 Economic Assistance and Opportunity - 0.5% $2,542,443 Culture and Recreation - 1.7% $8,297,311 Health and Community Services - 0.4% $2,157,829 Education - 14.5% $70,822,758 Fringe Benefits - 29.2% $142,316,855 Other - 1.7% $8,183,783 Debt Service - 5.1% $25,000,000 Debt Service Interest and Fiscal Charges - 0.2% $909,196 Total Expenditures $487,927,061 Education - Board of Education portion of annual property tax receipts 14.5% of total expenditures. Fringe Benefits - Total $142,316,855 in 2021. Costs include City paid pension plans, vacation pay, life insurance, health and unem- ployment insurance. 29.2% of total expenditures Other - General miscellaneous expenses. 1.7% of total expenditures 10 CITY FINANCES Significant Revenue & Expenditure Adjustments CITY OF BUFFALO OTHER FINANCING SOURCES General Funds Other Financing Sources 2021 Transfers In $10,280,473 Transfers Out $(29,786,283) Revenue Deficiency Notes $0.00 Total Other Financing Sources $(19,505,810) Transfers In - Revenues received from other funds per agreement Transfers Out - Revenues owed to other funds per agreement Revenue Deficiency Notes - Notes issued to cover budgeted revenue shortfalls due to Covid-19 Pandemic - Notes due 12/31/2022 11 CITY FINANCES Revenues FY 2019 FY 2020 FY 2021 Property taxes, assessments, and other tax items $147,255,421 $148,676,847 $149,666,888 Utility and other non-property tax items $13,262,812 $12,592,226 $12,188,508 Intergovernmental charges $272,157,881 $243,069,922 $330,639,303 Investment interest $1,890,714 $1,478,126 $130,652 License, permit, rentals, fines, and other service charges $31,860,084 $28,301,644 $25,463,662 Miscellaneous $11,295,677 $14,187,777 $4,157,340 Total Revenues $477,722,589 $448,306,542 $522,246,353 Expenditures General government support $61,540,385 $57,356,529 $58,051,336 Public safety $1$160,424,683 $159,606,964 $157,914,797 Streets and sanitation $12,785,379 $12,019,919 $11,730,753 Economic assistance and oppor- tunity $2,388,366 $2,253,317 $2,542,443 Culture and recreation $9,129,187 $9,312,891 $8,297,311 Health and community services $2,305,708 $2,361,100 $2,157,829 Education $70,822,758 $70,822,758 $70,822,758 Fringe benefits $139,555,556 $135,728,796 $142,316,855 Other $3,340,600 $8,129,724 $8,183,783 Principal $25,000,000 Interest and fiscal charges $61,700 $91,350 $909,196 Total Expenditures $462,354,322 $457,683,348 $487,927,061 Net Excess / (Deficit) $15,368,267 $(9,376,806) $34,319,292 Other Financing Sources Transfers in $13,888,009 $10,321,156 $10,280,473 Transfers out $(28,307,561) $(29,355,211) $(29,786,283) Revenue Deficiency Notes $ - $25,000,000 - Total Other Financing Sources $(14,419,552) $5,965,945 $(19,505,810) Net change in Fund Balance $948,715 $(3,410,861) $14,813,482 Beginning Fund Balance $ 91,989,720 $92,938,435 $89,527,574 Ending Fund Balance $92,938,435 $ 89,527,574 $104,341,056 Financial Activity Statements Fiscal Years 2019 - 2021 (Unaudited) 12 CITY FINANCES City of Buffalo outstanding debt at the end of Fiscal Year 2021 totaled $329,480,064. Outstanding balances stem from general obligation bonds issued by the Buffalo Fiscal Stability Authority ($193,498,138) and prior years business-type activities ($135,981,926). Outstanding Debt 2017 - 2021 Debt Year Debt Amount 2017 $ 392,057,693 2018 $ 370,230,706 2019 $ 370,592,821 2020 $ 363,918,551 2021 $ 329,480,064 City Wide Debt 2017 - 2021 13 CITY FINANCES General Fund - Fund Balance 2017 - 2021 Fund Balance Activity 2017 - 2021 Fund Year Fund Balance 2017 $ 114,900,000 2018 $ 92,000,000 2019 $ 93,000,000 2020 $ 89,500,000 2021 $ 104,341,056 Fund Balance is essentially what is left over after the fund's assets have been used to meet its liabilities. Assets - Liabilities = Fund Balance (+ / - ) 14 Presented by: City of Buffalo Department of Audit & Control City Hall, Rm 1225 Buffalo, NY 14202 (716) 851-5255 www.buffalocomptroller.com Mission Statement: “The Department of Audit & Control will protect, report and strengthen the City’s finances to help ensure an efficient, effective and transparent government that will better serve the citizens and taxpayers of Buffalo.” Vision Statement: “To advance as a world class financial organization by unleashing our full potential.” The Mission and Vision Statements were developed by the employees of the Department of Audit & Control.