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Borrello, Molitor warn of city ‘inaction’ on finances

State Sen. George Borrello and Assemblyman Andrew Molitor say council needs to act on city financial plan.

State Sen. George Borrello and Assemblyman Andrew Molitor continue to pressure the city of Dunkirk on its troubled Fiscal Recovery Act.

Borrello and Molitor released a joint statement Monday “regarding the failure of the city of Dunkirk Common Council and Mayor Kate Wdowiasz to act on the extension of the (act).”

They declared that “Despite the urgency of Dunkirk’s fiscal crisis and the city’s own request for assistance, both the Common Council and Mayor Wdowiasz have failed to follow through on the Fiscal Recovery Act extension. If city officials do not step up and act, Dunkirk taxpayers may once again be left paying the price for that inaction.”

The act was supposed to pump millions last year into the financially troubled city’s accounts. However, it was dependent on the city getting its debt officially certified by the state Comptroller’s Office, and Dunkirk had trouble doing that. Late audits blamed on bad recordkeeping delayed the process.

By the time the debt was certified, Dunkirk ran out of time to access the money; it was supposed to do so by Dec. 31. City officials have subsequently pleaded for an extension.

Borrello and Molitor stated, “While we still feel that the best path forward for Dunkirk’s long-term fiscal stability is the establishment of an independent financial control board, we initiated the extension of the Fiscal Recovery Act at the mayor’s request. We held meetings with her office, conducted an informational call with the Common Council, and introduced legislation designed to give Dunkirk the tools it needs to stabilize its finances and protect essential services. Since then, we have received no response, no follow-up and no communication whatsoever.”

Borrello and Molitor added, “While other cities across New York State have received large bailouts from Gov. (Kathy) Hochul in this year’s budget while getting to keep their state aid, Dunkirk has been saddled with a high-interest loan — while losing their state aid — which was agreed to by the mayor and governor last year. The city’s fiscal crisis continues, which threatens its taxpayers and its future. It is not acceptable to go quiet when we have offered a structured path forward, especially when the city has asked the state for a $17 million lifeline.”

The state senator and assemblyman promoted their proposal to renew the act as including “straightforward, reasonable conditions: that the city honor its collective bargaining agreements; that the Common Council pass a home rule resolution, a routine step for any local request of this nature; and that the mayor take responsibility for reporting the city’s financials to the State Comptroller in the absence of a fiscal control officer.

“These are not unusual requests. They are basic standards of accountability for a situation of this nature.”

Borrello and Molitor concluded by re-emphasizing that Dunkirk’s government needs to take more action.

“This bill cannot move forward without action from the Common Council and the mayor. We have done our part. The city must now do theirs. Every day of inaction is another day Dunkirk moves closer to a fiscal cliff that will threaten services, strain labor relations, and further erode public trust.

“We remain ready to work with the city. But they have to show up.”

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