25-1406 : Comptroller's Estimate and Report - Five Year Capital Debt Plan 2026-2030
Summary
This report from the Buffalo Comptroller outlines the city's Five Year Capital Debt Plan for 2026-2030, as required by the City Charter. It details the city's debt contracting power, showing a significant margin beneath its debt ceiling. The report also reviews the Capital Debt Management Policy, highlighting key ratios for debt burden and adherence to goals. It notes that charter-required bi-annual reports on capital project progress have not been provided, which could hinder informed decision-making.
Key Financials and Projections:
- Debt Contracting Margin: The city is $1,560 million beneath its debt-ceiling limit as of July 1, 2025.
- Debt Ratios:
- Net Direct Debt as a Percentage of General Fund Revenues: 37.9% (goal < 30%).
- Total Debt Service as a Percentage of Expenditures: 6.7% (goal < 8%).
- Net Direct Debt as a Percentage of Full Valuation: 0.87% (goal < 1.75%).
- Percentage of Bond Principal Amortizing over 10 Years: 92.8% (goal >= 80%).
- Proposed Debt Issuance Caps:
- 2026: $28,000,000
- 2027: $29,000,000
- 2028: $29,000,000
- 2029: $34,000,000
- 2030: $36,000,000
The report also identifies $71.8 million in authorized but unissued projects and $53.9 million in budgeted but unauthorized projects, requiring review for future viability. It emphasizes the need to fund non-capital expenditures and projects with shorter lifespans from the General Fund to mitigate interest costs and address concerns raised by bond counsel and auditors.