[0:00] That's a member Wyatt. Here. That's a president Bridget. Here. For Mr. President. Alright, we

[0:21] have our cadre of council members. We'll start with item number one. Item number one, cash

[0:26] flow report, September 2018. Items open. Items open. I guess the cash flow report is prepared

[0:33] by the controller's office. I'll let you start on the item. And then Mr. Estridge is here

[0:37] to speak to the item. So we have representatives from the controller's office. Would you like

[0:41] to identify yourself? Sure. This is Patrick Curry, executive assistant to the controller.

[0:47] I'm joined by an investment debt officer, Greg Samanski. So this is the third cash

[0:54] flow report we've done. We'll be doing these on a monthly basis in this fiscal year. And

[1:00] this is for the information ending September 30th, 2018, covering the first three months

[1:09] of the fiscal year. We added a new feature to this month's report. Right when it gets

[1:16] to the time where we might have some cash flow difficulties, we broke that down instead

[1:22] of monthly. We broke that down into weekly cash flow projections. So those are for the

[1:27] month of November, December and January, where we see the biggest shortages and where, you

[1:34] know, if need be we might have to do some short term borrowing. Basically, the areas

[1:42] that were of concern previously are still of concern. Although we did, as a result

[1:48] of last committee meeting, we did make an adjustment to the real estate line because of St. Paul

[1:56] Mall properties that have recently been slated to get sold. The city did get $350,000 from

[2:04] those properties. It was in the previous fiscal year, so that wouldn't count in this cash

[2:08] flow. But we did put $1 million in for the remaining properties. And then when

[2:13] we find out what months will come in, we can put them in the correct month. But

[2:18] we have them coming in before the end of the year. So that changes real estate, which is

[2:25] budgeted at $8 million. So we're $7 million short of that at this point. We're also short

[2:33] gifts and donations. The Tribal Compact is $17 million. And the Entertainment Ticket

[2:38] Search Act. So those are the areas that we haven't seen the revenue at all, but

[2:44] there are a few areas where revenue is not tracking with the budget as far as keeping

[2:52] pace with the monthly projections. The biggest area would probably be traffic violations.

[2:58] They're coming up 100,000 or more short per month, which could lead to a shortfall

[3:06] of about $2 million to $3 million by the end of the year. So that is one area of

[3:12] concern. I think licenses and permits are also slightly down, not as bad as traffic

[3:17] violation. But that's one other area of concern. So that's our cash flow report for

[3:26] September. Now that October is over, we'll be filing one for the next month

[3:32] shortly.

[3:33] The following is the August report that's in the committee structure. Thank the

[3:38] controllers office for the report. Commissioner Estridge, have you had time to look at the

[3:42] report?

[3:43] I did. And it was much different from the August report, almost $30 million different.

[3:49] So it was to the good, which was a good thing. We have been reaching out to the

[3:55] state to cover any deficit this month. So we have been ready to go to December,

[4:03] now which means we don't need it. So we will continue our discussions with state

[4:08] budgets.

[4:09] And that's revolving around these casino funds?

[4:12] That would be moving up some of our state aid, if necessary.

[4:17] Where are we at with the casino funds? I know Niagara Falls received some information

[4:22] last month. And have we had any new information on the casino fund?

[4:25] We don't have any new information. They assume, again, our information we receive

[4:31] is going to be completed by the end of the calendar year. And the decision would be made

[4:35] early next year when it will be paid. So we've become full of that. I do agree going

[4:42] forward though the traffic violations is below budget. And we're working with police.

[4:48] They just created a new traffic detail and bid that out. So that's going to be picking

[4:53] up some help.

[4:55] The $30 million to the good, where was that because of July 30th tax debt line or what

[5:03] happened there with the $30 million?

[5:05] The biggest impact was from the Board of Education.

[5:07] Oh, Board of Education. Council President Pritchett.

[5:10] Thank you, Mr. Chair. The leadership of the council did meet with the mayor's

[5:18] office with the administration as was prescribed in the Memorandum of Understanding. It's a step

[5:28] in the right direction to be able to hear, of course, from our controller's office.

[5:33] That's why city government is set up the way it is. And then to have conversation with

[5:39] the administration does put me in a bit more of a comfortable, not comfortable as if we

[5:45] don't have to watch, but comfortable that we are communicating. And I think that's the

[5:51] first step to being fiscally responsible. The same things that were reported here for

[5:59] the public to hear were the same things that were shared in that meeting. And so those

[6:04] meetings will continue. So I do want to thank this committee for reminding us and both

[6:09] the administration and the controller because then that way in the middle we are able

[6:14] to see the finances and not only us but the public. Thank you, Mr. Chair.

[6:19] Thank you.

[6:20] Yes.

[6:21] This was a funny thing. On the traffic enforcement, I think what's so important is that our

[6:27] police department, you know, I know that it's lying in the budget. However, what I

[6:32] would not want to see is the police start to enforce traffic for revenue

[6:38] purposes. The reason for traffic enforcement is really about quality of life and for safety

[6:45] of our citizens. If everybody is, you know, maybe everybody's driving well in Buffalo

[6:52] right now and there's no need to give a ticket. But to be very honest, there are, there

[6:58] is a need for that department to expand, you know, when we talk about neighborhoods

[7:03] and people blasting down streets, city streets, going through stop signs as

[7:08] Council Member is one of his pet peeves in his community and all of ours, blowing

[7:14] through stop signs the safety of our children on the way to school. That's

[7:18] the reason, you know, I'd like to see that department expand it not necessarily

[7:23] for revenue generation. Thank you, sir. Mr.

[7:26] In agreement with Council President, that is one of the biggest complaints that

[7:30] we have had is speeding through the city and that's the reason that this

[7:36] task force was created. We've started the speed bump and now we want to follow up

[7:41] with the police office also. Yeah, when you're mining for gold, it's good to

[7:45] know that there's gold in the well and there's plenty of gold there to be

[7:48] digging for because you're right. You could park at St. Mary's and Felix

[7:53] and they did one day and for a whole week they said they gave 300 tickets

[7:57] for people blowing the stop sign halfway down a residential block. Just blowing.

[8:01] They didn't, if you stopped and you showed, you know, good amount of effort

[8:05] and then you kind of went, no problem. They weren't trying to zip people.

[8:08] But those people that just blew through the ticket, that's fine, it's fine with me.

[8:12] You know, some of, I always talk about some of the smaller towns that I have

[8:15] to travel through and they are absolutely ridiculous but they're speeding

[8:18] forward. They'll follow you for a mile to see if you screw up.

[8:21] Oh, you didn't stop on the white line when you came to a full stop.

[8:25] You know, it just gets to be ridiculous. You have to be like in Driver's Ed.

[8:28] We're not looking to do that but I think there's plenty of gold out there

[8:31] to mine for when it comes to speeders going $50 daily, going through

[8:35] stop signs on side streets. We even got bus drivers driving through

[8:38] stop signs on Brinkman Avenue right now. I feel one of them to get a ticket.

[8:41] A bus driver, we ever on tape, whoever it is, multiple bus drivers

[8:45] driving through stop signs at Brinkman and Rowe. There's a guy there with cameras.

[8:49] He watches them every day and it's pretty sad and the news covers it.

[8:52] It goes to first student. Still not fixed. They're still driving through.

[8:55] They don't care. It's kind of a strange situation so we're hoping

[8:58] that this could help improve safety throughout the city of Buffalo

[9:01] and show those drivers. Now this might be a reduced revenue stream

[9:05] in the future because maybe some of these people will happen to lose

[9:08] their license when they get so many tickets or maybe they'll stop doing things wrong.

[9:11] So this might not be something we could count on as far as to spike those

[9:14] but there seems to be plenty of people out there breaking the law

[9:17] when it comes to traffic.

[9:20] Someone's got to buzz in first. Whoever buzzed in first gets it.

[9:23] Let's see who buzzed in first. Go ahead.

[9:26] Mr. Wyatt, it was faster to the buzzer. Mr. Wyatt, do you have the floor?

[9:29] Thank you. Thank you, Mr. Chair. I'm glad that we've approached this

[9:32] from a standpoint of quality of life.

[9:36] I think that when I press the issue of red light cameras

[9:41] some people thought it was a money grab and it certainly wasn't.

[9:45] And if you look at the complaints or read the complaints

[9:48] or hear the complaints from our residents, it really is about quality of life.

[9:52] As people speed up and down some of our side streets

[9:56] and some of our commercial thoroughfares, it's very dangerous.

[10:00] And even coming in here today, I saw a guy run through a stop sign

[10:06] then run through the red light and there was no enforcement.

[10:10] So for us, like you said, there is gold there

[10:13] but more importantly, there's some safety issues that every resident should have

[10:18] and I think that when we focus on that, it won't be a money grab

[10:22] and I think that when we, because hopefully those revenues will increase

[10:27] I did have some questions during the budget hearings about how we increase revenues

[10:32] but I certainly from my perspective was looking at it from a quality of life issue

[10:36] certainly not for us to line the city's pockets

[10:39] but when we continue to see these things, we have to take these precautions

[10:43] and I do think that this is an avenue in which we can do so.

[10:47] But more importantly, I think there's some other things that we have to do too.

[10:50] I mean, we have to be practical in our budgeting.

[10:52] It can't be something that's just stuff on paper.

[10:55] Donna, one of the questions I want to ask because I did see

[10:58] when I was watching Channel 1322 or something, I think.

[11:02] I saw her at the control board meeting

[11:07] and just wanted to get a sense of what are the thoughts on our current finances.

[11:12] We will be filing the first quarter gap.

[11:15] Tomorrow as a matter of fact.

[11:17] And we are going to be pretty much at budget right now.

[11:20] We have reduced expenses.

[11:22] I mean our projection right now, we have some savings in healthcare.

[11:25] We have some savings in the salary adjustment

[11:29] and a buyer contract is going to come to you very soon.

[11:33] For approval into that contract, we will not need the full salary adjustment that we had put.

[11:39] We were going to have some, the borrowing because we have the state that is going to help us

[11:45] with moving up our state aid payment.

[11:48] So I don't think we'll be needing, we had a million and a half in the freeze account

[11:52] for anticipated rent borrowing.

[11:54] So our expenses are going to be down about four million.

[11:57] Our revenues, we did put the PDA, the traffic adjudication down,

[12:01] about two million dollars.

[12:03] Our gross utility tax is down about 400,000 dollars there to date.

[12:09] And the sale of assets, I did read the capital asset.

[12:13] So all sold, it's going to be pretty much at budget though.

[12:17] So are you going to do a re-forecast of the budget?

[12:21] Yes.

[12:22] When will we get that?

[12:23] I'm filing it tomorrow.

[12:24] Okay, thank you.

[12:26] Lastly, Mr. Chair, I thought you had made reference to maybe having the control board

[12:32] come in and give us some type of presentation.

[12:34] Is that something that you're still interested in doing possibly?

[12:38] In which year did I do that?

[12:40] I mean, it's been every year for the last 10 years.

[12:42] We've asked them to come to the budget committee.

[12:43] They won't show up in the building.

[12:44] They don't even know where City Hall is at the time.

[12:46] For the million dollars they spend each year on our taxpayer dollars.

[12:49] I don't know.

[12:50] Okay.

[12:51] I'll talk to you about it later.

[12:52] We'll see what you come up with.

[12:53] But yeah, they refuse to come in the building.

[12:54] They refuse to have an office in this building.

[12:55] They refuse to save $60,000 a year on rent that they spent.

[12:58] They just refuse.

[12:59] And all they want to do is expend.

[13:01] A million dollars a year that we spend on the taxpayer's paying that control board every year.

[13:05] And it'd be nice if they have pined on a few of the things here in person.

[13:08] Had a report with the council.

[13:10] Had a report with this body.

[13:13] But we don't exist to them.

[13:15] Well, we put it out there.

[13:16] It's on the internet.

[13:17] Go read it.

[13:18] That's great.

[13:19] Thank you, Mr. Chair.

[13:20] Sorry.

[13:21] Mr. Rivera.

[13:22] Thank you.

[13:23] Thank you.

[13:24] We're done up with regards to the fines and tickets.

[13:29] I agree that that is not a reliable source of revenue.

[13:35] Because you really can't depend on it.

[13:38] People are conditioned to obey the vehicle and traffic laws that we issue tickets.

[13:43] So that's very unpredictable, unreliable.

[13:47] Have we done an analysis because we have the same manpower, the same resources we had last year?

[13:56] But revenues are down.

[13:59] So I'm trying to understand we're going to put together another team of police officers to go out and pay tickets.

[14:09] But I'm trying to understand why if we had resources last time and revenues were up 100,000 per.

[14:16] What is going on?

[14:18] I mean, are we doing an analysis to try to figure out why revenues are down?

[14:23] Is it because people are conditioned?

[14:26] We have the same manpower.

[14:28] We have the same resources in place that we had last year.

[14:32] But yet we're down 100,000 per month.

[14:36] I'm just wondering what are we doing to...

[14:39] Traffic violations is going through each type of ticket right now and seeing the change from here to here.

[14:45] Thank you.

[14:48] I was glad to hear that expenses are down.

[14:52] You mentioned expenses are down.

[15:00] What are some of the expenses that are down right now?

[15:06] As I mentioned, from the projection, we're not going to use the borrowing.

[15:11] So I had almost a million dollars there.

[15:13] Our health care for retiree inactive right now is pending below budget by a little about a million two.

[15:21] We're not using the stale readjustment, full stale readjustment that we put in the budget to settle conflict.

[15:29] And that's about $650,000.

[15:32] And our services and supply lines are down about a million dollars.

[15:37] Now, the controller had asked that we ask the state to advance us state aid.

[15:46] How's our catch on hand right now? Do we have to?

[15:50] Are we in a position right now where we should be asking the state to advance this money?

[15:54] Or do we have the funds to cover the expenses that we have?

[16:00] From the August one, we did need that advancement.

[16:04] But from the most recent one they filed, we do not need it.

[16:07] He's showing a deficit come January.

[16:10] So that would be the first time we would need an advancement.

[16:14] So you say we do not need it?

[16:17] We do not need it for December.

[16:20] We do not need the money for December.

[16:22] And it doesn't make sense to go get money from the state just to put in our bank account.

[16:26] We would not ask them.

[16:28] They are ready to help us, but we are not going to ask them.

[16:31] They're willing to help us if we need it.

[16:34] However, if we're paying our expenses, there's no sense in forward us advancing us the money sits in our bank account.

[16:43] They wouldn't do it.

[16:45] Because all they're doing is saying we're sending you money, you're going to put it in the bank.

[16:49] When you don't need it.

[16:51] So they're going to wait until we do need it before they advance the money.

[16:55] Correct.

[16:56] Alright, thank you.

[16:58] Okay, we've been joined by Council Member Scanlon.

[17:00] I failed to mention that earlier.

[17:01] I apologize.

[17:02] And also, Commissioner, you mentioned that the gross utilities tax is down 400,000.

[17:06] That's a revenue to the city now.

[17:08] Where's the cost factor of that?

[17:11] Those are where utility companies, phone companies pay a 3% gross utility tax.

[17:18] What we are doing right now, we're going through the last five years in comparing the companies that have been paying the companies that kind of dropped off.

[17:26] And we're starting to reach out to them to say, you owe us the money.

[17:31] So we don't know if they're existing companies or if they have gone bankrupt or what to deal with.

[17:36] So at this point in your day, we're $400,000 shy as to last year.

[17:40] What was the total of dollar last year?

[17:42] Pardon me?

[17:43] What was the total of dollar last year?

[17:44] It was about $7.5 million?

[17:45] $7.5 million.

[17:47] And that's inclusive of the spectrum franchise agreement as well?

[17:52] No, that's separate.

[17:53] That's separate?

[17:54] Okay.

[17:55] That'd be separate.

[17:56] All right.

[17:57] Great.

[17:58] I think we've thoroughly looked at the issue and we'll motion the table at this time.

[18:00] Motion to table.

[18:01] Seconded by Council Member Wyatt.

[18:03] Commissioner, thanks for coming in.

[18:04] And thank you for the report.

[18:05] The choice.

[18:07] Item number two, spectrum to raise prices for cable and internet services next month.

[18:12] Motion to table.

[18:13] Table seconded by Council Member Fairlittle.

[18:15] Item number three, Department of Public Service Commission.

[18:18] Motion open.

[18:20] Well, items open.

[18:22] Council Member Wyatt, do you have any concerns on this one?

[18:27] I think that you pretty much summarized it that the PSC will not meet with us.

[18:33] And they just wanted to send us a letter which, you know, you stated from past experiences that they were willing to meet with us.

[18:42] So I'm just a little bit surprised that they've changed their practices and haven't given us any reason for understanding why they have done so.

[18:49] I think with the issue at hand and how spectrum has shown a very, a disrespect for the residents and their consumers that they would want to hear firsthand some of those issues and concerns.

[19:03] We've laid it out a number of times.

[19:05] The issues that we have with spectrum.

[19:08] Here we go with another price increase.

[19:11] We're already paying the Cadillac of internet and cable services and they want to increase it even more.

[19:20] Two people who in some cases are, this is a priority for their children to learn and know other things.

[19:26] They haven't been very cooperative with us.

[19:28] And for them to submit a two for another rate increase is really just another slap in the face.

[19:36] So I don't know what our next step is steps forward.

[19:40] I know the PSC continues to put pressure on spectrum, but then I hear at the same time they're renegotiating.

[19:47] How do we fit into that?

[19:48] How do our residents fit into that?

[19:50] How do our customers fit into that?

[19:52] We really need to know we need to hear from them.

[19:54] So for them not to come is really just almost a double whammy because we have spectrum doing us on one side and then here they are on the other.

[20:03] Thank you.

[20:04] Okay.

[20:05] With the retirement of Steve Shea from the PSC a couple of, about a decade ago, we really have not heard from the PSC in this chamber since.

[20:12] So that's that's been a problem.

[20:14] There is a letter floating around that's been filed with the council.

[20:16] We'll have that next committee meeting and we can go through the letter and they say that they addressed the concerns that are in our letter.

[20:23] But you're not some of those letters are.

[20:25] Thank you for contacting our office and we'll look at it.

[20:28] So we'll see.

[20:29] But we really wanted to start that communication with the PSC as we go into negotiations.

[20:33] We'll continue to push and then based on the letter of what they've sent, we might want to do a resolution calling upon them to meet with us on a variety of topics.

[20:41] Yeah, I think I mean the fact that we're the second largest city in the state and for the PSC not to entertain us in the conversation really is like a slap in the face.

[20:53] I took it that way too.

[20:54] Steve used to travel from Albany to Buffalo and stay there to work late into the night to make the most of his time here in Buffalo.

[21:04] We asked for a telecom conference, which could be done in any room pretty much any time.

[21:09] I didn't think it cost that much.

[21:11] So just a concern that they weren't willing to do that.

[21:15] So we'll go from there.

[21:16] So we'll table this and we'll wait for the item to follow through to the council process.

[21:21] Motion to table.

[21:22] Table seconded by council member for a little item number for spectrum rate increases.

[21:27] Motion to table.

[21:28] Table seconded by Mr. Wyatt.

[21:30] Take from the table item five.

[21:32] Okay.

[21:33] So moved.

[21:36] Item number five.

[21:37] Cash flow report August 28th.

[21:39] Motion to receive and file.

[21:41] Receive and file.

[21:42] We'll keep a folder though and staff of course of all the cash flow reports seconded by council member Wyatt.

[21:46] Motion to adjourn.

[21:52] Motion to adjourn.

Finance Committee Council Committee Meeting

Transcript