BUFFALO, N.Y. (WKBW) — Acting Mayor Chris Scanlon has called for a full accounting of how the Buffalo Water Board has spent federal funds from the American Rescue Plan (ARP).
"We just wanted to know what money has been spent so far, where it has been spent, any of those accounts, if there's money still remaining in them, and then any communication that's taken place with people about arrears that may, may or may not have been wiped out," Scanlon said.
Scanlon sent a letter to the Water Board’s Chairman, Oluwole "OJ" McFoy, who recently left Buffalo to become the City Engineer for Houston, Texas.
Scanlon said he is requesting the following:
- A full and comprehensive accounting of BWB ARP fund expenditures to date for the ROLL program and Water Debt Forgiveness program.
- Remaining balances in the program account
- Documentation confirming that water arrears for homeowners’ accounts were forgiven, and record of communications to homeowners regarding the water bill debt forgiveness
The request comes after Scanlon's office discovered that $11 million in federal funding intended for a customer debt relief program was used instead for capital improvements.
"When we saw this, we felt the need to call attention to it so people know at the end of the day, it's their money. At the end of the day, we want them to know where their money went, what it was being used for, and if it's been used so far, how much of it's been used, how much is still left, and what they plan on using it for moving forward," Scanlon added.
During a Common Council Committee meeting in October, Council Member Rasheed Wyatt questioned McFoy about the $11 million allocation.
"And that was going towards what?" Wyatt asked.
"That was going to debt relief and arrearages for our customers, so we were able to apply that to our customers, and so they have seen a significant kind of—their arrearages went way down," McFoy responded.
So last week, Council Members voted to reallocate the $11 million back to the debt relief program, shifting the focus away from infrastructure improvements.
McFoy who said his tenure was completed on Tuesday with the city provided the following information regarding the federal funding:
$13.9M in Low Income Household Water Assistance Program (LIHWAP) and Buffalo East-Side Household Assistance Funds were used to pay down customer debt. You can view the chart on page 4 of the attached November Buffalo Water Board report, which provides further clarity on the debt paid down on customer accounts. On February 13, 2024, Buffalo Water distributed a Press Release reflecting dollars saved and debt erased by customers.
As you may know, the City of Buffalo American Rescue Plan (ARP) Spending Plan, approved August 26, 2021, allocated:On June 13, 2023 under Item No. 23-941 C.C.P. Amendment No. 3 reallocated $11,100,000 from Smart Sewer and Water Infrastructure Buildout to the payment of Premium Pay to City employees; and
- $40M for Smart Sewer and Water Infrastructure Buildout
- $10M for Replace Old Lead Lines (ROLL) Program; and
- $13M for Water and Sewer Debt Forgiveness Program
On July 27, 2023, under item No. 23-1325 C.C.P. Amendment No. 4 (Amended) reallocated $14,884,808 from Smart Sewer and Water Infrastructure Buildout, for other eligible expenditures leaving $14,015,192 for capital projects.
On April 12, 2024, after discussions between the City, Buffalo Water and Comptroller's office (see attached email), it was determined that of the $14,015,192 available for Sewer and Water Infrastructure Buildout, $11M would remain with the rest being reallocated for other eligible expenditures.
On May 6, 2024, the Comptroller facilitated budget amendments to allocate the slated $11M to capital projects.
The handling of ARP funds under previous city leadership has drawn criticism from inside City Hall.
"The ghost of Christmas past that is haunting City Hall is the Brown administration's failure to get these funds out on the street," Council Member Mitch Nowakowski said.
Some council members are now calling for an investigation or audit of how the funds were managed— a move that Scanlon said he supports.
"So if anyone has an interest in coming and looking at it, we will gladly cooperate," Scanlon stated.
Scanlon has requested a detailed report from the Water Board by Friday.
