City finances ‘alarming,’ comptroller reports
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The city of Dunkirk doesn't have enough money for operations through next spring, Comptroller Tracy Smith-Dengler said Tuesday.
Speaking at a Common Council Finance Committee meeting, Smith-Dengler called it "alarming stuff."
That was kind of a topper to yet another Finance Committee meeting full of bad news.
Smith-Dengler made her statement of alarm while explaining why the city cannot move $60,000 from contingency funds for an autumn brush pickup. Councilwoman Natalie Luczkowiak and Deputy DPW Director Mike Przybycien have advocated the move.
Although the city has around $10 million in fund balance, Smith-Dengler said that is "not a true number." That's because that money is needed to pay for ongoing city operations -- everything from salaries to retirement system debt to road salt, she said.
Dunkirk has about $7.2 million cash in the bank -- needed just to handle payroll through April, Smith-Dengler said.
"Right now the city of Dunkirk does not have enough money to see us through to our next (major) revenue source," she said. That is the collection of city taxes in spring 2027.
"This is alarming stuff," the city comptroller said.
Smith-Dengler continued her advocacy for moving up the city tax collection date. She acknowledged it would put "tremendous strain" on the city Clerk/Treasurer Office, but it is currently the only "legitimate avenue to fill our coffers."
Ellen Luczkowiak, Dunkirk's fiscal affairs officer, chimed in that the city is not in a position to do another Revenue Anticipation Note. Dunkirk has already done at least two of those since 2024.
City Assessor Erica Munson proposed moving the tax collection date from May to March for 2027, then to January for 2028. Smith-Dengler seems to advocate moving it to January immediately, doing it side by side with Chautauqua County tax collection.
Munson noted that even as it is with a May collection date, numerous residents unable to pay their taxes come to her city office in tears. Smith-Dengler replied, "I understand those dynamics. I'm looking at cash flow. We don't have any."
Former city Councilwoman Nancy Nichols spoke up from the audience, stating that moving up the tax collection date will not help city residents. She worried about its effect on them and wondered if there would be a "mass exodus."
Smith-Dengler retorted that prior Dunkirk administrations were not meeting their fiscal responsibilities.
"We either close down and declare bankruptcy, or shift gears," she said.
Mayor Kate Wdowiasz attended the meeting and the OBSERVER asked her afterward if bankruptcy is an option for Dunkirk.
"I think at this point it's not off the table because the council is still refusing to take action on important matters... for example water rates, moving tax dates up," Wdowiasz replied.
"They have no appetite to save the city and are looking for the easy way out so they don't have to make unpopular decisions," she added.
Luczkowiak gave her own report shortly after Smith-Dengler finished hers. "Tracy said most everything that needed to be said. I reiterate what she's saying because it's tight," the fiscal officer said.