That's a member Wyatt. Here. That's a president Bridget. Here. For Mr. President. Alright, we
have our cadre of council members. We'll start with item number one. Item number one, cash
flow report, September 2018. Items open. Items open. I guess the cash flow report is prepared
by the controller's office. I'll let you start on the item. And then Mr. Estridge is here
to speak to the item. So we have representatives from the controller's office. Would you like
to identify yourself? Sure. This is Patrick Curry, executive assistant to the controller.
I'm joined by an investment debt officer, Greg Samanski. So this is the third cash
flow report we've done. We'll be doing these on a monthly basis in this fiscal year. And
this is for the information ending September 30th, 2018, covering the first three months
of the fiscal year. We added a new feature to this month's report. Right when it gets
to the time where we might have some cash flow difficulties, we broke that down instead
of monthly. We broke that down into weekly cash flow projections. So those are for the
month of November, December and January, where we see the biggest shortages and where, you
know, if need be we might have to do some short term borrowing. Basically, the areas
that were of concern previously are still of concern. Although we did, as a result
of last committee meeting, we did make an adjustment to the real estate line because of St. Paul
Mall properties that have recently been slated to get sold. The city did get $350,000 from
those properties. It was in the previous fiscal year, so that wouldn't count in this cash
flow. But we did put $1 million in for the remaining properties. And then when
we find out what months will come in, we can put them in the correct month. But
we have them coming in before the end of the year. So that changes real estate, which is
budgeted at $8 million. So we're $7 million short of that at this point. We're also short
gifts and donations. The Tribal Compact is $17 million. And the Entertainment Ticket
Search Act. So those are the areas that we haven't seen the revenue at all, but
there are a few areas where revenue is not tracking with the budget as far as keeping
pace with the monthly projections. The biggest area would probably be traffic violations.
They're coming up 100,000 or more short per month, which could lead to a shortfall
of about $2 million to $3 million by the end of the year. So that is one area of
concern. I think licenses and permits are also slightly down, not as bad as traffic
violation. But that's one other area of concern. So that's our cash flow report for
September. Now that October is over, we'll be filing one for the next month
shortly.
The following is the August report that's in the committee structure. Thank the
controllers office for the report. Commissioner Estridge, have you had time to look at the
report?
I did. And it was much different from the August report, almost $30 million different.
So it was to the good, which was a good thing. We have been reaching out to the
state to cover any deficit this month. So we have been ready to go to December,
now which means we don't need it. So we will continue our discussions with state
budgets.
And that's revolving around these casino funds?
That would be moving up some of our state aid, if necessary.
Where are we at with the casino funds? I know Niagara Falls received some information
last month. And have we had any new information on the casino fund?
We don't have any new information. They assume, again, our information we receive
is going to be completed by the end of the calendar year. And the decision would be made
early next year when it will be paid. So we've become full of that. I do agree going
forward though the traffic violations is below budget. And we're working with police.
They just created a new traffic detail and bid that out. So that's going to be picking
up some help.
The $30 million to the good, where was that because of July 30th tax debt line or what
happened there with the $30 million?
The biggest impact was from the Board of Education.
Oh, Board of Education. Council President Pritchett.
Thank you, Mr. Chair. The leadership of the council did meet with the mayor's
office with the administration as was prescribed in the Memorandum of Understanding. It's a step
in the right direction to be able to hear, of course, from our controller's office.
That's why city government is set up the way it is. And then to have conversation with
the administration does put me in a bit more of a comfortable, not comfortable as if we
don't have to watch, but comfortable that we are communicating. And I think that's the
first step to being fiscally responsible. The same things that were reported here for
the public to hear were the same things that were shared in that meeting. And so those
meetings will continue. So I do want to thank this committee for reminding us and both
the administration and the controller because then that way in the middle we are able
to see the finances and not only us but the public. Thank you, Mr. Chair.
Thank you.
Yes.
This was a funny thing. On the traffic enforcement, I think what's so important is that our
police department, you know, I know that it's lying in the budget. However, what I
would not want to see is the police start to enforce traffic for revenue
purposes. The reason for traffic enforcement is really about quality of life and for safety
of our citizens. If everybody is, you know, maybe everybody's driving well in Buffalo
right now and there's no need to give a ticket. But to be very honest, there are, there
is a need for that department to expand, you know, when we talk about neighborhoods
and people blasting down streets, city streets, going through stop signs as
Council Member is one of his pet peeves in his community and all of ours, blowing
through stop signs the safety of our children on the way to school. That's
the reason, you know, I'd like to see that department expand it not necessarily
for revenue generation. Thank you, sir. Mr.
In agreement with Council President, that is one of the biggest complaints that
we have had is speeding through the city and that's the reason that this
task force was created. We've started the speed bump and now we want to follow up
with the police office also. Yeah, when you're mining for gold, it's good to
know that there's gold in the well and there's plenty of gold there to be
digging for because you're right. You could park at St. Mary's and Felix
and they did one day and for a whole week they said they gave 300 tickets
for people blowing the stop sign halfway down a residential block. Just blowing.
They didn't, if you stopped and you showed, you know, good amount of effort
and then you kind of went, no problem. They weren't trying to zip people.
But those people that just blew through the ticket, that's fine, it's fine with me.
You know, some of, I always talk about some of the smaller towns that I have
to travel through and they are absolutely ridiculous but they're speeding
forward. They'll follow you for a mile to see if you screw up.
Oh, you didn't stop on the white line when you came to a full stop.
You know, it just gets to be ridiculous. You have to be like in Driver's Ed.
We're not looking to do that but I think there's plenty of gold out there
to mine for when it comes to speeders going $50 daily, going through
stop signs on side streets. We even got bus drivers driving through
stop signs on Brinkman Avenue right now. I feel one of them to get a ticket.
A bus driver, we ever on tape, whoever it is, multiple bus drivers
driving through stop signs at Brinkman and Rowe. There's a guy there with cameras.
He watches them every day and it's pretty sad and the news covers it.
It goes to first student. Still not fixed. They're still driving through.
They don't care. It's kind of a strange situation so we're hoping
that this could help improve safety throughout the city of Buffalo
and show those drivers. Now this might be a reduced revenue stream
in the future because maybe some of these people will happen to lose
their license when they get so many tickets or maybe they'll stop doing things wrong.
So this might not be something we could count on as far as to spike those
but there seems to be plenty of people out there breaking the law
when it comes to traffic.
Someone's got to buzz in first. Whoever buzzed in first gets it.
Let's see who buzzed in first. Go ahead.
Mr. Wyatt, it was faster to the buzzer. Mr. Wyatt, do you have the floor?
Thank you. Thank you, Mr. Chair. I'm glad that we've approached this
from a standpoint of quality of life.
I think that when I press the issue of red light cameras
some people thought it was a money grab and it certainly wasn't.
And if you look at the complaints or read the complaints
or hear the complaints from our residents, it really is about quality of life.
As people speed up and down some of our side streets
and some of our commercial thoroughfares, it's very dangerous.
And even coming in here today, I saw a guy run through a stop sign
then run through the red light and there was no enforcement.
So for us, like you said, there is gold there
but more importantly, there's some safety issues that every resident should have
and I think that when we focus on that, it won't be a money grab
and I think that when we, because hopefully those revenues will increase
I did have some questions during the budget hearings about how we increase revenues
but I certainly from my perspective was looking at it from a quality of life issue
certainly not for us to line the city's pockets
but when we continue to see these things, we have to take these precautions
and I do think that this is an avenue in which we can do so.
But more importantly, I think there's some other things that we have to do too.
I mean, we have to be practical in our budgeting.
It can't be something that's just stuff on paper.
Donna, one of the questions I want to ask because I did see
when I was watching Channel 1322 or something, I think.
I saw her at the control board meeting
and just wanted to get a sense of what are the thoughts on our current finances.
We will be filing the first quarter gap.
Tomorrow as a matter of fact.
And we are going to be pretty much at budget right now.
We have reduced expenses.
I mean our projection right now, we have some savings in healthcare.
We have some savings in the salary adjustment
and a buyer contract is going to come to you very soon.
For approval into that contract, we will not need the full salary adjustment that we had put.
We were going to have some, the borrowing because we have the state that is going to help us
with moving up our state aid payment.
So I don't think we'll be needing, we had a million and a half in the freeze account
for anticipated rent borrowing.
So our expenses are going to be down about four million.
Our revenues, we did put the PDA, the traffic adjudication down,
about two million dollars.
Our gross utility tax is down about 400,000 dollars there to date.
And the sale of assets, I did read the capital asset.
So all sold, it's going to be pretty much at budget though.
So are you going to do a re-forecast of the budget?
Yes.
When will we get that?
I'm filing it tomorrow.
Okay, thank you.
Lastly, Mr. Chair, I thought you had made reference to maybe having the control board
come in and give us some type of presentation.
Is that something that you're still interested in doing possibly?
In which year did I do that?
I mean, it's been every year for the last 10 years.
We've asked them to come to the budget committee.
They won't show up in the building.
They don't even know where City Hall is at the time.
For the million dollars they spend each year on our taxpayer dollars.
I don't know.
Okay.
I'll talk to you about it later.
We'll see what you come up with.
But yeah, they refuse to come in the building.
They refuse to have an office in this building.
They refuse to save $60,000 a year on rent that they spent.
They just refuse.
And all they want to do is expend.
A million dollars a year that we spend on the taxpayer's paying that control board every year.
And it'd be nice if they have pined on a few of the things here in person.
Had a report with the council.
Had a report with this body.
But we don't exist to them.
Well, we put it out there.
It's on the internet.
Go read it.
That's great.
Thank you, Mr. Chair.
Sorry.
Mr. Rivera.
Thank you.
We're done up with regards to the fines and tickets.
I agree that that is not a reliable source of revenue.
Because you really can't depend on it.
People are conditioned to obey the vehicle and traffic laws that we issue tickets.
So that's very unpredictable, unreliable.
Have we done an analysis because we have the same manpower, the same resources we had last year?
But revenues are down.
So I'm trying to understand we're going to put together another team of police officers to go out and pay tickets.
But I'm trying to understand why if we had resources last time and revenues were up 100,000 per.
What is going on?
I mean, are we doing an analysis to try to figure out why revenues are down?
Is it because people are conditioned?
We have the same manpower.
We have the same resources in place that we had last year.
But yet we're down 100,000 per month.
I'm just wondering what are we doing to...
Traffic violations is going through each type of ticket right now and seeing the change from here to here.
Thank you.
I was glad to hear that expenses are down.
You mentioned expenses are down.
What are some of the expenses that are down right now?
As I mentioned, from the projection, we're not going to use the borrowing.
So I had almost a million dollars there.
Our health care for retiree inactive right now is pending below budget by a little about a million two.
We're not using the stale readjustment, full stale readjustment that we put in the budget to settle conflict.
And that's about $650,000.
And our services and supply lines are down about a million dollars.
Now, the controller had asked that we ask the state to advance us state aid.
How's our catch on hand right now? Do we have to?
Are we in a position right now where we should be asking the state to advance this money?
Or do we have the funds to cover the expenses that we have?
From the August one, we did need that advancement.
But from the most recent one they filed, we do not need it.
He's showing a deficit come January.
So that would be the first time we would need an advancement.
So you say we do not need it?
We do not need it for December.
We do not need the money for December.
And it doesn't make sense to go get money from the state just to put in our bank account.
We would not ask them.
They are ready to help us, but we are not going to ask them.
They're willing to help us if we need it.
However, if we're paying our expenses, there's no sense in forward us advancing us the money sits in our bank account.
They wouldn't do it.
Because all they're doing is saying we're sending you money, you're going to put it in the bank.
When you don't need it.
So they're going to wait until we do need it before they advance the money.
Correct.
Alright, thank you.
Okay, we've been joined by Council Member Scanlon.
I failed to mention that earlier.
I apologize.
And also, Commissioner, you mentioned that the gross utilities tax is down 400,000.
That's a revenue to the city now.
Where's the cost factor of that?
Those are where utility companies, phone companies pay a 3% gross utility tax.
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.
And we're starting to reach out to them to say, you owe us the money.
So we don't know if they're existing companies or if they have gone bankrupt or what to deal with.
So at this point in your day, we're $400,000 shy as to last year.
What was the total of dollar last year?
Pardon me?
What was the total of dollar last year?
It was about $7.5 million?
$7.5 million.
And that's inclusive of the spectrum franchise agreement as well?
No, that's separate.
That's separate?
Okay.
That'd be separate.
All right.
Great.
I think we've thoroughly looked at the issue and we'll motion the table at this time.
Motion to table.
Seconded by Council Member Wyatt.
Commissioner, thanks for coming in.
And thank you for the report.
The choice.
Item number two, spectrum to raise prices for cable and internet services next month.
Motion to table.
Table seconded by Council Member Fairlittle.
Item number three, Department of Public Service Commission.
Motion open.
Well, items open.
Council Member Wyatt, do you have any concerns on this one?
I think that you pretty much summarized it that the PSC will not meet with us.
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.
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.
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.
We've laid it out a number of times.
The issues that we have with spectrum.
Here we go with another price increase.
We're already paying the Cadillac of internet and cable services and they want to increase it even more.
Two people who in some cases are, this is a priority for their children to learn and know other things.
They haven't been very cooperative with us.
And for them to submit a two for another rate increase is really just another slap in the face.
So I don't know what our next step is steps forward.
I know the PSC continues to put pressure on spectrum, but then I hear at the same time they're renegotiating.
How do we fit into that?
How do our residents fit into that?
How do our customers fit into that?
We really need to know we need to hear from them.
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.
Thank you.
Okay.
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.
So that's that's been a problem.
There is a letter floating around that's been filed with the council.
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.
But you're not some of those letters are.
Thank you for contacting our office and we'll look at it.
So we'll see.
But we really wanted to start that communication with the PSC as we go into negotiations.
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.
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.
I took it that way too.
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.
We asked for a telecom conference, which could be done in any room pretty much any time.
I didn't think it cost that much.
So just a concern that they weren't willing to do that.
So we'll go from there.
So we'll table this and we'll wait for the item to follow through to the council process.
Motion to table.
Table seconded by council member for a little item number for spectrum rate increases.
Motion to table.
Table seconded by Mr. Wyatt.
Take from the table item five.
Okay.
So moved.
Item number five.
Cash flow report August 28th.
Motion to receive and file.
Receive and file.
We'll keep a folder though and staff of course of all the cash flow reports seconded by council member Wyatt.
Motion to adjourn.