City of Buffalo

CITY OF BUFFALO

POPULAR ANNUAL FINANCIAL REPORT

FOR FISCAL YEAR ENDED JUNE 30, 2019 BUFFALO, NEW YORK A M ESSAGE FROM THE ABOUT THISC REPORTOMPTROLLER tizens To of the the A MESSAGE FCiROM TABLE City of Buffalo of THE COMPTROLLER , CONTENTS As the chief fiscal officer of the City of Buffalo, we are pleased to present to you our Popular Annual Financial Report (PAFR) for the fiscal ended June 30, 2019. To the Citizens of the City of Buffalo, Annually the City issues audited financial statements, known as the Comprehensive Annual Financial Report (CAFR), which is prepared in accordance with Generally Accepted Accounting Principles (GAAP). The CAFR contains BUSINESS & To the Citizensdetailed of financial the City and of disclosure Buffalo, information for the City that, although extremely informative, can prov ECONOMIC As the chiefchallenging fiscal officer to ofinterpret the City of for Buffalo, those we who are do pleased not regularly to present review to you financialour Popular statements. Annual Financial DEVELOPMENT AsReport the chief (PAFR) fiscal for theofficer fiscal of ended the City June of30, Buffalo, 2019. we are pleased to present to you our Popular Annual Financial Pages 2 – 3 Report (PAFR) for the fiscal ended June 30, 2019. AnnuallyThe the PAFR, City issues on the audited other financial hand, presents statements, the financial known as informationthe Comprehensive from Annual the CAFR Financial in a more Report concise (CAFR), and user which format.is prepared Please in accordance note that with the Generally PAFR is unauditedAccepted Accounting and pr Principles (GAAP). The CAFR contains Annually the City issues audited financial statements, known as the Comprehensive Annual Financial Report (CAFR), detailedfinancial financial data and is disclosure provided informationin this report. for Information the City that, about although component extremely informative, units and enterprise can prove funds is available in the EDUCATION & whichchallengingCAFR. is prepared to interpret in accordance for those who with do Generallynot regularly Accepted review financial Account statements.ing Principles (GAAP). The CAFR contains CULTURE detailed financial and disclosure information for the City that, although extremely informative, can prove Page 4 challengingThe PAFR, on to the interpret other hand, for those presents who the do financial not regularly information review from financial the CAFR instatements. a more concise and user-friendly e format.The City’s Please last note six thatPAFR’s the receivedPAFR is unaudited Awards and for pr Outstandingesented on a nonAchievement-esentedGAAP basis. on in a Only nonPo general government the Government Financial Officers Association of the United States and Canada (GFOA). Thefinancial PAFR, data on the is provided other hand, in this report.presents Information the financial about information component unitsfrom and the enterprise CAFR in a funds -moreGAAP is availableconcise basis. Only inand the user-friendlygeneral government CAFR.Certificate of Achievement for Excellence in Financial Reporting to the City DEMOGRAPHICS format. Please note that the PAFR is unaudited and presented on a non-GAAP basis. Only general government financialconsecutive data yearis provided Buffalo in hasthis earned report. that Information honor. Electronic about component copies of both units and enterprise funds is available in the -friendly Page 5 The City’s last six PAFR’s received Awards for Outstanding Achievement in Popular Annual Financial Reporting from CAFR.website: the Governmentwww.buffalocomptroller.com Financial Officers Association of the United States and Canada (GFOA). The GFOA also awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for last year’s CAFR, thirteenth InThe consecutiveaddition City’s last to year informationsix Buffalo PAFR’s has received earnedabout thethatAwards City’s honor. for financ Electronic Outstanding copies Achievement of both the CAFR in Popular and PAFR Annual canpular be foundFinancial Annual at our Financial Reporting from CITY structure,thewebsite: Government economicwww.buffalocomptroller.com Financial progress, Officers business Association climate, of education the United system, States cultural and Canada attractions (GFOA). and The demographics. GFOA also awarded Thank a GOVERNMENT for last The GFOA alsoReporting awarded from a youCertificate for your interest of Achievement in our City, for and Excellence we hope in you Financial enjoy Reportin the reportg to the City for last year’s CAFR,year’s thirteenth CAFR, thirtee Page 6 consecutiveIn addition to year information Buffalo abouthas earned the City’s that financ honor.es, this Electronic PAFR contains copiesinformation of both the about CAFR Buffalo’sthe and CAFR PAFR governmental and canPAFR be can found be found at our at our structure, economic progress, business climate, education system, cultural attractions and demographics. Thank website: www.buffalocomptroller.com es, this PAFR contains nth Barbarayou forM your interest in our City, and we hope you enjoy the report! Comptrolleriller -Williams information about Buffalo’s governmental CITY FINANCES InBarbara addition Miller to information-Williams about the City’s finances, this PAFR contains information about Buffalo’s governmental Pages 7 - 8 structure,Comptroller economic progress, business climate, education system, cultural attractions and demographics. Thank ! you for your interest in our City, and we hope you enjoy the report!

Barbara Miller-Williams Comptroller

1 BUSINESS & ECONOMIC DEVELOPMENT

BELOW ARE A FEW OF THE UPCOMING PROJECTS, INVESTMENTS AND GRANTS WITHIN THE CITY OF BUFFALO:

• Nash Lofts - 163 Broadway ($6.6 million • AM&A’s building at 377 Main St. ($70 mil- investment) to convert four vacant buildings lion investment) will be turned into a 350 on Broadway and Michigan into mixed use room Wyndham Hotel apartments, office space and restaurants

• The development and reconstruction of • Albright-Knox Art Gallery at 1285 Elmwood Seneca One Tower ($120 million investment) Ave. ($160 million investment) expansion and former Buffalo Police Headquarters and renovation ($30 million investment) are helping reshape Downtown by bringing additional jobs, apartments, office space and restaurants • City of Buffalo contracted with a new Pre scription Benefit Manager (CVS) that’s • Renovation of the former 600,000-square estimated to save the City $8 million in foot Trico building that will consist of 133 administration costs apartments and 100,000 square feet for mix use office, retail and restaurant tenants ($80.5 million Investment) • New York State ongoing commitment to cultivate the East Side of Buffalo with an investment of $120 million to transform • Record Theatre building at 1785 Main St. neighborhoods, revitalize the Jefferson (Up to $7 million investment) renovation for Avenue commercial corridor and create mixed use job-training opportunities for residents

• City of Buffalo secured a $9.8 million grant • Northland Workforce Training Center – (SAFER) from FEMA to fund the salaries Phase 2 ($45 million investment) for 50 new firefighters for three years & $322,000 from FEMA to cover additional firefighter operational costs • Louisiana ($ 25 million investment) con struction of apartments

• New York State to provide $10 million, Ralph BUSINESS & ECONOMIC DEVELOPMENT C. Wilson, Jr. Foundation’s $5 million and City of Buffalo $3 million to help fund LaSalle Park project (Replace Hudson St. pedestrian bridge)

Below are a few of the upcoming projects, investments and grants within the City of Buffalo:

• Nash Lofts - 163 Broadway ($6.6 million • City of Buffalo secured a $9.8 million grant (SAFER) from • City of Buffalo contracted with a new investment) to convert four vacant buildings on2 FEMA to fund the salaries for 50 new firefighters for three Prescription Benefit Manager (CVS) that’s Broadway and Michigan into mix use apartments, years & $ 322,000 from FEMA to cover additional firefighter estimated to save the City $8 million in office space and restaurants operational costs administration costs

• The development and reconstruction of Seneca • New York State ongoing commitment One Tower ($120 million investment) and former • New York State to provide $10 million, Ralph C. Wilson, Jr. to cultivate the East Side of Buffalo with Buffalo Police Headquarters ($30 million investment) Foundation’s $5 million and City of Buffalo $3 million to help an investment of $120 million to transform are helping reshape Downtown by bringing fund LaSalle Park project (Replace Hudson St. pedestrian neighborhoods, revitalize the Jefferson additional jobs, apartments, office space and bridge) Avenue commercial corridor and create restaurants job-training opportunities for residents

• Renovation of the former 600,000-square foot Trico building that will consist of 133 apartments • AM&A’s building at 377 Main St. ($70 million investment) • Northland Workforce Training Center and 100,000 square feet for mix use office, retail will be turned into a 350 room Wyndham Hotel – Phase 2 ($45 million investment) and restaurant tenants ($80.5 million Investment)

• Barcalo & Boil apartments at 175- • Record Theatre building at 1785 Main St. (Up • Albright-Knox Art Gallery at 1285 Elmwood Ave. ($160 255 Louisiana ($ 25 million investment) to $7 million investment) renovation for mixed use million investment) expansion and renovation construction of apartments BUSINESSBUSINESSBUSINESS & ECONOMIC& ECONOMIC & ECONOMIC DEVELOPMENT DEVELOPMENT DEVELOPMENT LargestLargest Public Public Companies Companies M&TM&T Bank Bank Moog Moog National Fuel Gas GibraltarNational Industries Fuel Gas GibraltarAstronics Industries Columbus McKinnonAstronics SovranColumbus Self Storage McKinnon ComputerSovran Task Self Group Storage ComputerSynacor Task Group Financial Institutions, Inc. Synacor Financial Institutions, Inc. Largest Private Companies Rich Products Corporation LargestDelawareNorth Private Companies BasilRich Ford Products Dealerships Corporation EmployerDelaware Services North JohnBasil Danforth Ford Dealerships Co. StampedePresentationEmployer Services Products Jack Hunt Coin Broker John Danforth Co. The City of Buffalo, New York’s economy continues to grow. As the Curbell The CityCity of Buffalo,proceeds New onYork's the economy path pushing continues tofor grow. more As theeconomic/community City proceeds on the SevensonStampede Environmental Presentation Services Products path pushing for more economic/community development, entrepreneurial growth, attract Jack Hunt Coin Broker development, entrepreneurial growth, attract new businesses and Rosina Food Products new businessesexpand the and expandgrowth the of growth current ofcurrent business, business, it itis is becoming becoming a destination a destination city Curbell for all. ThereThe hasCity been of Buffalo, nearly $6.7 New billion York's in economynew economic continues investment to grow. since 2012,As the which City isproceeds on the city for all. There has been nearly $6.7 billion in new economic SevensonLargest Environmental Employers Services projectedpath to create pushing 12,000 for new more jobs. economic/community development, entrepreneurial growth, attract investment since 2012, which is projected to create 12,000 new jobs. ErieCounty Medical Center Rosina Food Products new businesses and expand the growth ofcurrent business, it is becoming a destination city Wegmans for all. There has been nearly $6.7 billion in new economic investment since 2012, which is Geico Largest Employers projected to create 12,000 new jobs. Rosewell Park ErieCatholic County Health Medical Center M&TWegmans Bank University atGeico Buffalo TopsRosewell Markets Park ErieCountyCatholic Health SenecaM&T Gaming Bank University at Buffalo Tops Markets Erie County Seneca Gaming

3 EDUCATION & CULTURE EDUCATION & CULTURE

Colleges & Universities The Buffalo area is home to 21 colleges & universities, dedicated to academic excellence and a commitment to lifelong learning opportunities for students throughout the region. With a total of 112,138 students in the Buffalo area graduates provide more than $3 billion in economic impact to the region.

University of 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

Cultural Sites & More

The Buffalo area is home to world-renowned wide architecture, museums and other cultural attractions.

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

4 DEMOGRAPHICS

City Population (2019 estimate) 256,304 Occupations (2014-2018) Management, Business, Science & Erie County Population 919,719 39.8 Arts Metropolitan area population 1,134,210 Service 18.2 Land Area in square miles 40.38 Sales and Office 23.2 Natural Resources, Construction, Persons per square miles 6,347 7.0 Maintenance Production, Transportation & Male (2019) 47.6% 11.8 Material Moving Female (2019) 52.4% Class of Worker (2014-2018) Persons 65 or older (2019) 12.4% Private worker 80.4 Per Capita income (2014-2018) 23,397 Government Worker 16.3

Persons below poverty level (2014 - 2018) 30.3 Self-empoyed 3.3 Speak language other than English (2014 - 18.2 By Household (2014-2018) 2018) Foreign-born (2014-2018) 10.0 Households 110,701 Median Value of Owner Occupied Homeownership rate (2014-2018) 40.8 82,900 Housing Mean travel time to work (2014-2018) 21.1 Median household income 35,893 Education attainment (over the 0 Persons Per Household 2.24 age of 25) High school graduate or higher (2014- 83.9 Unemployment rate (2019) 2018) Bachelors degree or higher (2014- 26.6 Buffalo (metro) 4.2 2018) New York State 4.0

United States 3.5

Sources: U.S. Census Bureau Sources: N.Y.S. Dept. of Labor Sources: U.S. Dept. of Labor 5 CITYCITY GOVERNMENT GOVERNMENT City of Buffalo Leadership CITY GOVERNMENT City of Buffalo Leadership

MAYOR MAYOR Byron W. Brown Byron W. Brown201 City Hall Buffalo, NY 14202 201 City Hall 716-851-4851 CITY GOVERNMENT Buffalo,City NY 14202 of Buffalo Leadership 716-851-4851COMPTROLLER BarbaraMAYOR Miller-Williams 1225 City Hall ByronBuffalo, W. NY Brown 14202 COMPTROLLER201716-851-5255 City Hall Barbara Miller-WilliamsBuffalo, NY 14202 COMMON716-851-4851 COUNCIL 1225 City HallDarius G. Pridgen Council President Buffalo, NY 14202COMPTROLLEREllicott District 716-851-5255Barbara 716-851-4980Miller-Williams 1225 City Hall Buffalo,David NY A. Rivera14202 DEPARTMENTS Majority Leader 716-851-5255 COMMON COUNCILNiagara District ADMINISTRATION, FINANCE, HUMAN RESOURCES Darius G. Pridgen716-851-5125 POLICY & URBAN AFFAIRS Responsible for all personnel functions, COMMON COUNCIL Includes Division of Budget, including benefits and training programs, Council PresidentDariusChristopher G. Pridgen P. Scanlon Treasury, Collections and Purchase for 2,805 City employees * President Pro Tempore Ellicott DistrictCouncilSouth President District AUDIT & CONTROL LAW 716-851-4980Ellicott716-851-5169 District Led by the Comptroller, Includes Prosecutes and defend all actions 716-851-4980 Division of Accounting, Audit and and proceedings brought by or Ulysees O. Wingo Investment & Debt Management against the City. Also responsible for Masten District drafting and reviewing all contracts David A. RiveraDavid716-851-5145 A. Rivera ASSESSMENT & TAXATION involvingDDEPARTMENTSEPARTMENTS the City Majority LeaderMajority Leader Responsible for the preparation NiagaraRasheed District Wyatt and mailing ofADMINISTRATION, City property tax FINANCE,PARKING HUMAN RESOURCES University District and sewer rent bills Responsible for parking meters Niagara District716-851-5125 ADMINISTRATION,POLICY & URBAN AFFAIRSFINANCE, ResponsibleHUMAN for all RESOURCES personnel functions, 716-851-5165 and city City owned parking ramps 716-851-5125 COMMONPOLICY IncludesCOUNCIL & URBAN Division of AFFAIRS Budget, includingResponsible benefits and for training all personnel programs, functions, ChristopherJoel P. Feroleto P. Scanlon The IncludeslegislativeTreasury, body Division of the Collections City, of Budget, and PurchasePERMITS AND INSPECTIONSfor 2,805including City employees benefits * and training programs, PresidentDelaware Pro DistrictTempore which also oversees the City Conducted 67,350 inspections 716-851-4553 Clerk'sTreasury, office Collections and Purchaseand 84 demolitions in 2019 * for 2,805 City employees * Christopher P. ScanlonSouth District AUDIT & CONTROL LAW President Pro Tempore716-851-5169Joseph Golombek Jr. COMMUNITYLed SERVICES by the Comptroller, IncludesPOLICE DEPARTMENT Prosecutes and defend all actions South District North District IncludesAUDIT DivisionDivision & of Youth CONTROL of Services Accounting, Audit andMade 12,081 arrests and enforcedand proceedingsLAW brought by or Ulysees716-851-5116 O. Wingo and Senior ServicesInvestment & Debt Management32,386 traffic violations in 2019against * the City. Also responsible for 716-851-5169 Led by the Comptroller, Includes Prosecutes and defend all actions Masten District drafting and reviewing all contracts Mitch Nowakowski EXECUTIVE DEPARTMENT MANAGEMENT INFO. SYSTEMS - MIS 716-851-5145 Division of Accounting, Audit and involvingand theproceedings City brought by or Fillmore District Includes OfficeASSESSMENT of Strategic Planning & TAXATIONThe City's information technology Ulysees O. Wingo716-851-4138 PlanningInvestment & DivisionResponsible of Citizen & Debt forScvs. the Management preparationdepartment provides computers against the City. Also responsible for and Real Estate and internet service Masten DistrictRasheed Wyatt and mailing of City property tax PARKINGdrafting and reviewing all contracts UniversityBryan Bollman District and sewer rent bills Responsible for parking meters Lovejoy District PUBLIC WORKS, PARKS & STREETS FIRE DEPARTMENT 716-851-5145716-851-5165 ASSESSMENT & TAXATION and cityinvolving City owned the parking City ramps 716-851-5151 Responsible for maintenance and capitalResponsible improvementCOMMON to for COUNCILthe preparation* Sources 2019 Comprehensive Rasheed WyattJoel P. Feroleto infrastructureand mailingThe and legislativebuildings, of City body property of the City, tax Annual Financial Report PERMITSPARKING AND INSPECTIONS Delaware District street lighting,which sanitation, also oversees the City Conducted 67,350 inspections University District716-851-4553 snowand removal, sewerClerk's and parks rentoffice bills and 84Responsible demolitions infor 2019 parking * meters maintenance 716-851-5165 and city City owned parking ramps Joseph Golombek Jr. COMMONCOMMUNITY COUNCIL SERVICES POLICE DEPARTMENT North District Includes Division of Youth Services Made 12,081 arrests and enforced Joel P. Feroleto716-851-5116 The legislativeand Senior Services body of the City, 32,386PERMITS traffic violations AND in INSPECTIONS 2019 * Delaware District which also oversees the City Conducted 67,350 inspections 716-851-4553Mitch Nowakowski Clerk'sEXECUTIVE office DEPARTMENT MANAGEMENTand 84 demolitions INFO. SYSTEMS in 2019 - MIS * Fillmore District Includes Office of Strategic Planning The City's information technology 716-851-4138 Planning & Division of Citizen Scvs. department provides computers Joseph Golombek Jr. COMMUNITYand Real Estate SERVICES and internetPOLICE service DEPARTMENT North DistrictBryan Bollman Includes Division of Youth Services Made 12,081 arrests and enforced Lovejoy District PUBLIC WORKS, PARKS & STREETS FIRE DEPARTMENT 716-851-5116716-851-5151 and SeniorResponsible Services for maintenance and 32,386 traffic violations in 2019 * capital improvement to * Sources 2019 Comprehensive Mitch Nowakowski EXECUTIVEinfrastructure DEPARTMENT and buildings, AnnualMANAGEMENT Financial Report INFO. SYSTEMS - MIS street lighting, sanitation, Fillmore District Includessnow Office removal, of andStrategic parks Planning The City's information technology 716-851-4138 Planningmaintenance & Division of Citizen Scvs. department provides computers and Real Estate 6 and internet service Bryan Bollman Lovejoy District PUBLIC WORKS, PARKS & STREETS FIRE DEPARTMENT 716-851-5151 Responsible for maintenance and capital improvement to * Sources 2019 Comprehensive infrastructure and buildings, Annual Financial Report street lighting, sanitation, snow removal, and parks maintenance CITY FINANCES Fund Balance

General Fund: $93.0 milliom CITYCITY FINANCES The City's main CITY FINANCES operatingFundFund fund Balance Balance GeneralGeneral Fund: Fund: Includes:$93.0$93.0 milliom milliom TheThe City's City's main main Emergencyoperatingoperating fund fund Stabilization Includes: Fund Includes: Emergency $38.5 millionEmergency Stabilization 30 days' worthStabilization of Fund expenditures;$38.5 onlyFund million for unanticipated$38.530 days' million worth of non-recurring30expenditures; days' worth only of expenditures; only expenses. for Also unanticipated for non-recurringunanticipated know as thenon-recurring Rainyexpenses. Also Day Fundexpenses.know as the Also Rainy know Dayas the Fund Rainy Non-SpendableDay Fund As discussed last year, an arbitration panel has ruled in favor of New York State in a dispute Non-Spendable As discussed last year, an arbitration panel has ruled in favor of New York State in a dispute $29.6 million with the Seneca Nation of Indians over the sharing of revenue from various casinos in Non-Spendable$29.6 million withAs discussed the Seneca last Nation year, ofan Indians arbitration over thepanel sharing has ruled of revenue in favor from of variousNew York casinos State in in a dispute Land Held for $29.6Land million Held for New NewwithYork York the State, SenecaState, including including Nation of the theIndians Seneca Seneca over Buffalo theBuffalo Creeksharing CasinoCreek of revenue locatedCasino from in located the various City of in casinosBuffalo. the City in of Buffalo. Resale, Solid Waste The annual share of casino revenue Buffalo had been receiving from New York State, Resale, SolidLand Waste Held for The annualNew York share State, of including casino revenue the Seneca Buffalo Buffalo hadCreek been Casino receiving located in from the City New of Buffalo.York State, Deficit, Prepaids before the Seneca Nation stopped making payments in fiscal year 2017, was approximately Deficit, PrepaidsResale, Solid Waste beforeThe the annual Seneca share Nation of casino stopped revenue makingBuffalo had payments been receiving in fiscal from year New 2017, York State, was approximately $7 million. With the installation of additional slot machines at the Seneca Buffalo Creek Deficit, Prepaids before the Seneca Nation stopped making payments in fiscal year 2017, was approximately Restricted $7 million.Casino, annual With paymentsthe installation are now estimated of additional to be approximately slot machines $11 million. at the Seneca On Buffalo Creek $7 million. With the installation of additional slot machines at the Seneca Buffalo Creek Restricted$11.8 million Casino,November annual 8, 2019. payments The United are Statesnow estimatedDistrict Court to upheld be approximately an appeal of the arbitration $11 million. ruling On Restricted Casino, annual payments are now estimated to be approximately $11 million. On $11.8 millionCapital Outlay, Novemberby the Seneca 8, 2019. Nation The of IndiansUnited in States favor of DistrictNew York CourtState. We upheld expect thatan appeal the City ofshould the arbitration ruling $11.8 million November 8, 2019. The United States District Court upheld an appeal of the arbitration ruling Capital Outlay,Emergency by theresume Seneca receiving Nation revenue of Indians sharing paymentsin favor asof well New as backYork payments State. We due expect to the City. that the City should CapitalMedical Outlay, Service by the Seneca Nation of Indians in favor of New York State. We expect that the City should EmergencyEmergency resumeresume receiving receiving revenue revenue sharing sharing payments payments as wellas well as back as back payments payments due to thedue City. to the City. Medical ServiceMedicalAssigned Service For fiscal year 2019, New York State provided the City of Buffalo an advance payment of $13.0 million $7.5 million of Seneca revenue for future expected Seneca revenue sharing payments owed Encumbrances, to the City. After significant use of fund balance in the previous two years AssignedAssigned For fiscalFor fiscal year year 2019, 2019, New New York York State provided provided the the City City of Buffalo of Buffalo an advance an advance payment payment of of $13.0Judgements million and ($34.5$7.5 million million of in Seneca fiscal year revenue 2017 forand future $22.9 expectedmillion in Senecafiscal year revenue 2018), sharing this advance payments payment, owed $13.0 millionEncumbrances,Claims $7.5alongto million the with City. of the After Seneca other significant increases revenue usein revenues for of fund future discussedbalance expected in on the page previous Seneca 8, helped tworevenue the years City sharingrecord its payments owed Encumbrances,Judgements and to thefirst($34.5 City. positive million After net insignificant results fiscal in year three 2017use years of and infund which$22.9 balance fundmillion balance in in thefiscal was previous year not 2018),needed two thisto balanceyears advance payment, Judgements andUnassignedClaims ($34.5 alongoperations. million with the Withoutin otherfiscal anyincreases year funds 2017 yet in revenues available and $22.9 indiscussed Unassigned million on page Fundin fiscal 8,Balance, helped year it the 2018),is imporant City record this advance its payment, $0 Claims alongthatfirst with thepositive theCity continueother net results increases to makein three strides in years revenues in inreplenishing which discussed fund its balance fund on balance pagewas not in 8, a neededhelpedfiscally to the balance City record its Free and clear for responsible way Unassigned operations. Without any funds yet available in Unassigned Fund Balance, it is imporant general purpose use first positive net results in three years in which fund balance was not needed to balance $0 that the City continue to make strides in replenishing its fund balance in a fiscally UnassignedFree and clear for operations.responsible Without way any funds yet available in Unassigned Fund Balance, it is imporant $0general purpose use that the City continue to make strides in replenishing its fund balance in a fiscally Free and clear for responsible way general purpose use

7 CITY FINANCES CITY FINANCES RevenuesRevenues & Expenditures & Expenditures

GeneralGeneral Fund Fund revenues revenues increased increased byby $24.3$24.3 million, million, while while General General Fund Fund expenditures expenditures decreased decreased by $2.5 bymillion. $2.5 million. CITY FINANCESCITY FINANCES General Fund RevenuesRevenues 2019& Expenditures & Expenditures2018 2017 (in millions) CITY FINANCES General Fund General revenues Fund increased revenuesBeginning by increased $24.3 General million, by $24.3 while Revenues million, General while Fund & GeneralExpenditures expenditures Fund expenditures decreased by decreased $2.5 million. by $2.5 million. Fund Balance $ 92.0 $ 114.9 $ 149.5 General Fund revenuesGeneralRevenues increased FundGeneral by $24.3 Fundmillion, while $General Fund 477.7expenditures$ decreased 453.4 by $2.5 million.$ 448.8 2019 20192018 2018 2017 2017 (in Expendituresmillions)(in millions) $ (462.4) $ (464.9) $ (465.0) General Fund BeginningTransfers GeneralBeginning to Debt General 2019 2018 2017 Fund BalanceService(inFund millions) and Balance Refuse$ 92.0 $ $ 92.0 114.9$ $ 114.9 $ 149.5 149.5 RevenuesBeginningRevenues General $ 477.7 $ $ 477.7 453.4$ $ 453.4 $ 448.8 448.8 ExpendituresFundsFund BalanceExpenditures$ $ (462.4) $ 92.0 $ $ $ (462.4) (464.9) 114.9 (28.3)$ $ (464.9) $ $ (29.3) 149.5 $ (465.0) (465.0)(31.5) TransfersRevenues to DebtTransfers to Debt$ 477.7 $ 453.4 $ 448.8 OtherExpenditures Transfers from$ (462.4) $ (464.9) $ (465.0) Service and RefuseService and Refuse WaterTransfers andto Debt Parking Funds Funds $ (28.3)$ $ (28.3) (29.3) $ $ (29.3) $ (31.5) (31.5) FundsService and Refuse $ 13.9 $ 17.9 $ 13.1 Other TransfersFundsOther from Transfers from$ (28.3) $ (29.3) $ (31.5) Water andNetOther Parking Change WaterTransfers and from in Parking Fund Funds BalanceWaterFunds and Parking $ 13.9 $ $ $ 13.9 17.9 $0.9 $ $ 17.9 $ (22.9) $ 13.1 (34.6) 13.1 Net ChangeFunds inNet Fund Change in Fund$ 13.9 $ 17.9 $ 13.1 BalanceTotalNet ChangeBalance in Fund$ 0.9 $ $ $ 0.9 (22.9) 93.8 $ $ $ (22.9) $ 92.0 $ (34.6) 114.9 (34.6) Total BalanceTotal $ $ 93.8 $ 0.9 $ $ 93.8 92.0 (22.9) $ $ 92.0 $ (34.6) 114.9 114.9 Total $ 93.8 $ 92.0 $ 114.9

RRevenuesevenuesRevenuesRevenuesRevenues ExpendituresExpendituresExpendituresExpendituresExpenditures

Revenue RevenueSourceRevenue SourceSource ExpenditureExpenditure Source Source Source 2019 20192019 201820182018 20172017 2017 Expenditur20192019 20192018 2018 20172018 2017 2017 Revenue(in millions) Source(in(in millions) (in(in millions) millions)(in millions) Intergovernmental 2019$ 272.2 $ 2018 263.3 $ 263.4 2017 Personal Services e$ Source 199.3 $ 199.0 $ 200.0 (inIntergovernmental millions)IntergovernmentalProperty Tax $ 272.2 $ $ $ 143.4 272.2 $ $ 263.3 137.5 $ $ 263.3 263.4 134.2 $ 263.4 PersonalFringe Benefits ServicesPersonal Services $ $ 134.1 199.3$ $ $ 199.3 135.2 $ $ 199.0 130.2 $ 199.0 200.0$ 200.0 Property Tax PropertyCharges Tax $ 143.4 $ $ $ 31.9 143.4 $ $ 137.5 30.2 $ $ 137.5 134.2 $ 28.9 134.2 FringeSupplies BenefitsFringe Benefits(in $millions) $ 10.3 134.1$ $ $ 134.1 $ 9.4 $ 135.2 8.7 $ 135.2 130.2$ 130.2 IntergovernmentalCharges ChargesGross Utility Tax $ $ $31.9 $ 272.2 $ 9.6 31.9 $ $ $ 30.2 7.8 $ 263.3 $ 30.2 28.9 $ 8.3 $ 28.9 263.4 SuppliesUtilities Supplies Personal$ $ Services 16.1 $ 10.3 $ $ 10.3 15.7$ $ 9.4 17.1 $ 9.4 8.7$ 8.7 Gross Utility TaxGrossOther Utility Taxes Tax $ $ 9.6 $ $ 7.2 9.6 $ $ 7.8 7.1 $ $ 7.8 8.3 $ 7.3 8.3 UtilitiesServices Utilities $ $ 26.4 $ 16.1 $ $ 16.1 24.9$ $ 15.7 24.6 $ 15.7 17.1$ 17.1 PropertyOther Tax Taxes OtherMiscellaneous Taxes $ $ $ 7.2 $ 143.4 $ 13.4 $7.2 $ $ 7.1 7.5 $ 137.5 $ 7.1 7.3 $ 6.7 $ 7.3 134.2 ServicesMiscellaneous Services Fringe$ Benefits $ 76.2 $ 26.4 $ $ 26.4 80.7$ $ 24.9 84.4 $ 24.9 24.6$ 24.6 ChargesMiscellaneousMiscellaneousTotal $ $ $13.4 $ 31.9 $ 477.7 13.4 $ $ $ 7.5 453.4 $ $ 30.2 7.5 6.7 448.8 $ $ 6.7 28.9 MiscellaneousTotal MiscellaneousSupplies$ $ 462.4 $ 76.2 $ $ 76.2 464.9 $ $ 80.7 465.0 $ 80.7 84.4$ 84.4 Total Total $ 477.7 $ $ 477.7 $ 453.4 $ 453.4 448.8 $ 448.8 Total Total $ 462.4$ $ 462.4 $ 464.9 $ 464.9 465.0$ 465.0 Gross Utility Tax Intergovernmental $ 9.6 $Gross Utility Tax 7.8 $ 8.3 Personal Services Utilities Supplies Other Taxes New York State Aid and$ 7.2 $Paid by providers of 7.1 $ 7.3 Salary and overtime for Services Includes gasoline and IntergovernmentalIntergovernmentalSales Tax revenue Gross Utilityutilities TaxGross on a percentageUtility Tax PersonalCity employees ServicesPersonal Services automotiveSupplies supplies Supplies MiscellaneousNew York StateNew Aid York and State Aid $and 13.4 Paid by providers$of their Paid gross of by receipts. providers of 7.5 $ 6.7 Salary and overtimeSalary andfor overtimeMiscellaneous for Includes gasolineIncludes and gasoline and Total Sales Tax revenueSales Tax revenue $ 477.7 utilities on$ a percentage utilities on a percentage 453.4 $ 448.8 City employeesCity employeesTotal automotive suppliesautomotive supplies Property Tax of their grossOther receipts. ofTaxes their gross receipts. Fringe Benefits Utilities Imposed on taxable Includes Franchise Tax, Includes City employees' Predominately IntergovernmentalProperty Tax Propertyproperty inTax the City. Other TaxesGrossMortgageOther Utility Tax Taxesand Tax Fringeand retirees' Benefits healthFringe and BenefitsPersonal ServiceselectricityUtilities for Utilities Imposed on taxableImposedThe Homestead on taxable and IncludesForeign FranchiseIncludes Fire InsuranceTax, Franchise Tax, Includesdental insurance, City employees'Includes FICA, City employees' street lightsPredominately and Predominately New York State AidNon-Homestead and rates PaidTax. by providers of Medicare and Workers' Salary and overtimebuildings; for also property in theproperty City. in the City. Mortgage Tax Mortgageand Tax and and retirees' healthand retirees' and health and electricity forelectricity for Sales Tax revenue for 2019 were $18.49 and utilities on a percentage Compensation costs City employees includes natural gas The HomesteadThe$28.22 and Homestead per $1,000 and of Foreign FireMiscellaneous InsuranceForeign Fire Insurance dental insurance,dental FICA, insurance, FICA, street lights andstreet lights and Non-HomesteadNon-Homesteadassessed rates value rates Tax. ofIncludes theirTax. reimbursement gross receipts. Medicare andMedicare Workers' and Workers' Servicesbuildings; alsobuildings; also for 2019 werefor $18.49respectively 2019 andwere $18.49 and for items sold, insurance CompensationCompensation costs costs Professionalincludes services naturalincludes gas natural gas $28.22 per $1,000$28.22 of per $1,000 of Miscellaneousreimbursement,Miscellaneous interest provided by contractors Propertyassessed Tax valueassessed Charges value IncludesOtherincome reimbursementIncludes and Taxes other reimbursement Fringe Benefits Services Services Imposedrespectively on taxablerespectivelyLicense and Permit fees, for itemsIncludesrental sold, forincome insurance items Franchise sold, insurance Tax, Includes City employees'MiscellaneousProfessional servicesProfessional services fines and other service reimbursement,reimbursement, interest interest Includes providedan annual by contractorsprovided by contractors charges. payment to the school Charges Charges income and otherincome and other district, nearly 93% of License and Permit fees, rental income License and Permit fees, rental income this expenseMiscellaneousMiscellaneous fines and otherfines service and other service Includes an annualIncludes an annual charges. charges. payment to thepayment school to the school district, nearlydistrict, 93% of nearly 93% of this expense this expense

8 CITY FINANCES CITY FINANCES CITYAssets FINANCES & Liabilities Assets & Liabilities To understand the City's flow of financial resources,A wessests looked & at whereLiabilities the money comes from and To understand the City's flow of financial resources, we looked at where the money comes fromCITY and FINANCES goes. When looking at the City's financial condition we focus on the net position: assets minus liabilities. goes. When looking at the City's financial condition we focus on the net position: assets Assetsminus liabilities. & Liabilities By looking at this in an accrual basis of accounting, we consider all assets and liabilities at a certain date. ByTo lookingunderstand at thisthe City's in an flow accrual of financial basis of resources, accounting, we looked we consider at where allthe assets money and comes liabilities from and at a certain date. OverOvergoes. time,When time, increaseslooking increases at theor ordecreases City's decreases financial in net conditionin positionnet position we serve focus serve ason an the indicationas net an position: indication of assets whether minusof whether the liabilities. financial the financial condition condition By looking at this in an accrual basis of accounting, we consider all assets and liabilities at a certain date.CITY FINANCES isis improving improving or or deteriorating. deteriorating. Our Our Primary Primary Government Government consists consists of governmental of governmental activities activities as well as as the well as the Over time, increases or decreases in net position serve as an indication of whether the financial condition activitiesactivities of of our our Refuse, Refuse, Parking Parking and and Water Water Funds Funds (Business (Business Type activities). Type activities). Assets & Liabilities is improvingTo understand or deteriorating. the City's Our flow Primary of financial Government resources, consists we looked of at governmental where the money activities comes asfrom well and as the activities goes.of our When Refuse, looking Parking at the and City'sStatement WaterS tatementfinancialStatement Funds condition (Business of we Type focusofNet activities). on Netof thePosition net Net position:Position assetsPosition(Primary minus liabilities.(Primary Government) (Primary Government) Government) By looking at this in an accrual Statement basis ofOur accounting, Our Assets of Assetswe Netconsider and Positionall and assetsOutflows and Outflows liabilities (Primary (Whatat a certain (What date. We Government) Have) We Have) (in millions)(in millions) UnrestrictedOver time, current increases assets or decreases consisting in net mainly position of serve cash as andan indication amounts of whetherowed to the the financial City condition $ 365.2 - New correct # Unrestricted current assets consisting Our Assets mainly and of cash Outflows and amounts (What owed We to the Have) City (in millions)$ 365.2 - New correct # Restrictedis improving cash and or cash deteriorating. equivalents Our Primary Government consists of governmental activities as well as the $ 146.6 UnrestrictedRestricted currentcash and assets cash consisting equivalents mainly of cash and amounts owed to the City $ 365.2$ - New correct # 146.6 Real Estateactivities acquired of our forRefuse, resale Parking and Water Funds (Business Type activities). $ 9.3 RestrictedReal Estate cash acquired and cash equivalents for resale $ 146.6$ 9.3 DeferredReal Estate outflows acquired forof resourcesresale $ $ 9.3 66.5 NetDeferred capital outflows outflows assets of consisting resources of resources primarilyStatement of buildings, ofequipment Net Position and vehicles (Primary Government)$ $ $ 66.5 723.2 66.5 Total Net capital capitalassets assets assetsand consisting deferred consisting primarily outflows primarily of buildings, ofOur the of Assets buildings,Cityequipment and and equipment Outflows vehicles and (What vehicles We Have) $ (in $ millions) 723.2 $ 1,310.8 - 723.2New correct # Total assets assets Unrestricted and and deferred current deferred outflows assets consistingoutflows of theOur mainly City of Liabilities ofthe cash City and amounts and owed Inflows to the City (What We Owe) $ $ 365.2 1,310.8 $ - - New correct New correct # # 1,310.8 - New correct # Restricted cash and cash equivalents Our Liabilities and Inflows (What We Owe) $ 146.6 Current liabilities Real Estate acquired consisting for resale of all the amounts the City owes and expects to pay in $ 9.3 Current liabilities consisting of all the amounts Our the City Liabilities owes and expects toand pay in Inflows (What We Owe) 2019, except Deferred City outflows bonds of resources $ $ 66.5 275.1 2019,Current except Net liabilities capital City bonds assets consisting consisting primarily of all the of buildings, amounts equipment the City and owes vehicles and expects to pay in $ $ 723.2 275.1 Other amounts the City owes and expects to pay after 2019, except for bonds, other Other2019, amounts exceptTotal assets the City City and bonds owes deferred and expects outflows to of pay the after City 2019, except for bonds, other $ 1,310.8 $ - New correct # 275.1 post-employmentpost-employment benefits benefits and and net pensionnet pension Our liability Liabilitiesliability and Inflows (What We Owe) $ $ 51.2 51.2 OtherOther post-employmentpost-employment amounts the City benefits benefits owes and and andnet pension expectsnet pension liability to pay liability after 2019, except for bonds, other $ $ 1,202.6 1,202.6 post-employment Current liabilities benefits consisting and of all net the pensionamounts the liability City owes and expects to pay in $ 51.2 AmountAmount of 2019,of bonds bonds except payable payable City bondsand and bond bond anticipated anticipated notes payablenotes payable $ $ $ 275.1 370.6 370.6 DeferredDeferredOther post-employment inflowsOther inflows amounts of of Resources Resources the City benefitsowes and expects and net to pay pension after 2019, liability except for bonds, other $ $ 259.5 $ 259.5 1,202.6 Total Total Amount liabilitiesliabilities post-employment of bonds and and deferred payable deferred benefits inflows and andinflows netbond of pension the of anticipated City the liability City notes payable $ $ $ 51.2 2,159.0 $ 2,159.0 370.6 Other post-employment benefits and net pension liability $ 1,202.6 Net Deferred Position inflows of Resources $ (848.2)$ New correct # 259.5 Net Position Amount of bonds payable and bond anticipated notes payable $ $ 370.6 (848.2) New correct # Historical NetDeferred Position inflows was of restated Resources as of June 30, 2017 due to the implementation of $ 259.5 HistoricalTotal Net liabilities Position Net Position and was deferred restated inflows as of June of 30, the 2017 City due to the implementation of (848.2)$ 2,159.0 GovernmentalTotal Accountingliabilities and Standards deferred Board’s inflows Statement of the City No. 75, Accounting and $Historic Net Position 2,159.0 GovernmentalFinancial Reporting Accounting for Postemployment Standards BenefitsBoard’s Plans Statement Other Than No. 75,Pensions. Accounting As of and (in millions)Historic Net Position Net Position $ New correct # (848.2) New correct # Financialresult of this,Net Reporting the Position City recorded for Postemployment an entry that reduced Benefits net Plans position Other by $850.4 Than Pensions.million As of $ (848.2) -500 (in millions) Historicalas of that Historicaldate. Net This Position Net entry Position represented was was restatedrestated expected as ofas June paymentsof June 30, 2017 30, in duethe 2017 tofuture the due implementation to active to the and implementation of of result of this,Governmental the City Accounting recorded Standards an entry Board’s that reduced Statement net No. 75,position Accounting by $850.4 and million retired employees due to their past service. In order to fairly present the change in -550 Historic-500 Net Position asGovernmental of thatFinancial date. This AccountingReporting entry forrepresented Postemployment Standards expected Board’s Benefits payments Plans Statement Other in Than the No. Pensions. future 75, Accountingto As activeof and and Historic Net Position -600 (in millions) retiredFinancialnet position employeesresult Reportingover of this,the due past the toCity forten their recordedyears,Postemployment past all an years service. entry prior that In toreduced Benefitsorder 2017 net haveto positionfairly Plans been present restated byOther $850.4 thebyThan million this change Pensions. in As of -550 -500 -589 (in millions) amount toas capture of that date. this adjustment.This entry represented Net position expected has paymentstrended downward in the future from to active 2009 and -650 -606-600 netresult position of this, over the the City past recorded ten years, an all entry years thatprior reduced to 2017 have net positionbeen restated by $850.4 by this million -550 through 2018retired largely employees as a result due to of their annual past revenueservice. In streams order to being fairly lesspresent than the annual change in -700 -589 -500 amountasexpenses. of that tonet In date.capture position2019, This this overthis trend entry the adjustment. past was represented ten reversed. years, Net all years position expected prior to has 2017 payments trended have been downward restatedin the futureby fromthis to2009 active and -600 -650-685 -606 -750 -589 throughretired employees2018amount largely to capture due as athis toresult adjustment. their of pastannual Net service. positionrevenue Inhas streams order trended to beingdownward fairly less present from than 2009 annual the change in -650 -606 -700 -722 -729-550 expenses.through In 2019, 2018 this largely trend as a result was reversed.of annual revenue streams being less than annual -800 -685 net position over the past ten years, all years prior to 2017 have been restated by this -700 -600-790 expenses. In 2019, this trend was reversed. -850 -685-750 -793-722 -750 -589 -729 amount to capture this adjustment. Net position has trended downward from 2009 -722 -729 -835-606 -900 -800 -650 -848 -800 -790 through 2018 largely as a result of annual revenue streams being less than annual -850 -790 -793 -793 -850-950 -700 -923 expenses. In 2019, this trend was reversed. -835 -848--951685 -835 -848 -1000-900 -900 -750 -722 -729 -950 -950 -923 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -923 -1000 -800 -951 -1000 -790-951-793 -850 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -835 2009 2010-9002011 2012 2013 2014 2015 2016 2017 2018 2019 -848

-950 -923 -1000 -951

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 9 Presented by:

City of Buffalo Department of Audit & Control 1225 City Hall 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.