Republicans on Dunkirk City Council have come out in opposition to Governor Kathy Hochul’s proposal to issue a $13.7 million loan to the City of Dunkirk.
The loan would carry a 7.5% interest rate over 15 years.
City council members who have stated their objection to the governor’s plan include Republicans Nancy Nichols, James Stoyle, and Abigail Zatorski. Each sent letters to the governor outlining their opposition to the legislation which was introduced on Monday.
Under the terms of the legislation, the city would forfeit its annual $1.5 million in Aid and Incentives for Municipalities (AIM) funding for the entire 15-year repayment period.
Council members, echoing State Senator George Borrello’s concerns, have rejected this approach as fiscally irresponsible and unsustainable. They are instead calling for the passage of legislation to establish a financial control board, a solution Borrello has championed for months.
Senator Borrello noted that the city’s financial woes are the product of years of mismanagement, as well as a persistent failure to submit required fiscal documentation to the State Comptroller’s Office. He said these failings have delayed the issuance of previously authorized deficit bonds and left Dunkirk without a certified plan to close its growing budget gap.
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