BUFFALO, N.Y. (WKBW) — Buffalo Mayor Sean Ryan Ryan is asking the common council to approve borrowing totaling over $20 million through the Buffalo Fiscal Stability Authority for emergency repairs to community centers and fire stations, along with design for some "shovel ready" projects.
The BFSA, commonly known as the control board, has not borrowed on behalf of the city since 2007.
The mayor's office has asked the common council to approve the borrowing to address what Deputy Mayor Benjamin Swanekamp describes as a series of "critical, emergent issues."
"We're trying to work swiftly to get those projects done," Swanekamp said.
EMERGENCY REPAIR PROJECTS
The money will fund repairs to community center roofs, fire station infrastructure and the accompanying emergency architectural and engineering services according to a list filed with the common council.
I visited the King Urban Life Center on the East Side of Buffalo. The building has faced a long wait for a new roof, which is being funded by the city. But the BFSA borrowing is set to pay to remediate the subsequent water damage, which has caused sections of the walls to peel and crumble.
The city usually borrows money for infrastructure upgrades through its capital budget, set to be submitted November 1. But that budget is not due to be approved by the council until December. Swanekamp said some of the infrastructure problems need urgent attention.
"The idea is to stabilize where there could a a life-safety issue or more rapid deterioration," Swanekamp explained.
There's also a money saving aspect. Back in July, the city's bond rating was downgraded by three major credit agencies. By borrowing through the BFSA, the interest rate is expected to be cheaper.
BYPASSING THE COMPTROLLER
The request bypasses the office of city comptroller Barbara Miller Williams, which is tied up in a legal battle with the city's executive branch over the amount of debt the city is accruing after the common council approved two successive capital budgets which exceeded her recommended $28 million debt limit.
But Swanekamp told me borrowing is not the problem.
"Buffalo has been under bonding and under borrowing for capital projects for a very long time," Swanekamp said. "A municipality of our size should frankly be bonding $75 to $100 million a year. We're not asking for that much here, but it's important that we invest in our infrastructure. If you don't invest things get more expensive over time as they deteriorate."
WATCH: Buffalo seeks to borrow $20 million through control board for infrastructure repairs
The BFSA is a separate body from the city and is set to dissolve in 2037. In a letter to the mayor filed with the council, the comptroller asks for clarity on whether bonding through the BFSA will extend the control board's lifespan. But state legislation prohibits that from happening.
"As of right now there are 10 years left on BFSA's existence for 2037, so that means we can issue bonds with a 10 year expiration note on them, which is pretty standard bond length," Swanekamp said.
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