City Comptroller Miller-Williams Issues Update on Fiscal Year 2024–2025 Financial Results
BARBARA MILLER-WILLIAMS
BUFFALO, NY — City Comptroller Barbara Miller Williams announced today that the City of Buffalo outside auditors, Drescher & Malecki, LLP, have identified an operational shortfall in the Fiscal Year (FY) 2024–2025 Adopted Budget. Therefore, she is requesting a decision by the Acting Mayor and Members of the Common Council to be granted authority to use Committed Fund Balance (Rainy-Day Funds) to close out the FY 2024-2025 financial audit.
The Preliminary Audit findings indicated that revenues underperformed, and expenditure exceeded the budget in several key areas. The City ended FY 2024–2025 with an operational deficit of approximately $14,768,426, reducing the total fund balance from $117,796,706 to $103,028,280. While a detailed analysis of the fiscal year’s results will be provided when the Annual Comprehensive Financial Report (ACFR) is finalized and filed with the Buffalo Common Council.
It is important to note that External Auditors Drescher & Malecki, LLP have informed the Comptroller’s Office that they cannot sign off on the FY 2024–2025 audit results until a determination is made by the Acting Mayor and Common Council Members on where to apply the remaining $6,862,734 operational variance. Both the Assigned and Unassigned Fund Balances are fully depleted, leaving the City with no available Fund Balance reserves. The Comptroller has formally requested, via letter and email on October 23, 2025, that the Acting Mayor and the Buffalo Common Council Members consider applying this remaining variance to the Committed Fund Balance (Emergency Stabilization Fund) commonly referred to as the “Rainy-Day Fund.”
Comptroller Miller Williams emphasized that this decision rests solely with the Administration and Common Council Members, as required by the City Charter. “It is not the decision of the Comptroller on where to apply the funds,” she noted. Per Article 20-17.3 of the City Charter, expenditures from the Emergency Stabilization Fund must be approved by the Mayor and Common Council Members upon submission by the Comptroller. In addition, Article 20-17.5 stipulates that whenever the Committed Fund Balance falls below the recommended 30-day operating cost threshold, the Mayor must submit a plan to Members of the Common Council to replenish the fund. This plan should propose a replenishment amount between 0.7% and 2.5% of the prior fiscal year’s actual revenue, $644,997,552 and must be presented within 60 days prior to filing the next annual budget. The Charter allows for up to two years for full replenishment of the Emergency Stabilization Fund.
If the Administration and Common Council Members do not authorize the use of the Committed Fund Balance to offset the $6,862,734 deficit, the Comptroller’s Office will have to post the negative variance to the Unassigned Fund Balance. Such a condition would immediately raise concerns with bond rating agencies and may negatively impact the City’s credit rating, increasing borrowing costs for capital projects, legal settlements, and potential deficit financing.
Comptroller Miller Williams reiterated that this request is Charter-driven and is necessary to finalize the City’s audited financial statements within the 120-day statutory deadline. “Our duty is to maintain transparency and fiscal accountability,” said Miller Williams. “This is about fulfilling our legal obligation under the Charter and ensuring the City’s long-term financial stability.”
The Department of Audit and Control will continue to monitor the City’s financial performance and provide regular updates.