State Sen. George Borrello says the “deteriorating fiscal situation has reached a crisis point” in the city of Dunkirk.

A potential solution to the troubling cash crunch in the city of Dunkirk is being considered by state Sen. George Borrello.

In response to the ongoing financial crisis facing the city of Dunkirk, Borrello announced Monday he will sponsor legislation to authorize the creation of a financial control board, which will be tasked with providing management and oversight of the city’s finances.

“The city of Dunkirk’s deteriorating fiscal situation has reached a crisis point, with structural deficits, mounting debt, poor oversight, and delayed audits threatening the city’s future viability,” Borrello said.

“Over the past several months I have had many conversations with the mayor, city council members and county and state leaders, including New York state Comptroller Tom DiNapoli, as well as constituents who are very concerned about the future of the city. To that end, I have tried my best to be supportive and allow the process to continue under local control,” Borrello said. “However, the problems have proven to be too large and complex. With an 84% property tax increase already in place and essential services at risk, it’s time for the state to step in and provide the necessary resources and oversight to restore fiscal stability and ensure long-term accountability.”

“I will be introducing legislation in the coming days to authorize the creation of a finance authority that will bring much-needed structure to the city’s financial operations while supporting, not replacing, local leadership. This type of oversight has worked in other New York communities during times of crisis, including Buffalo and Nassau County,” Borrello said. “The goal is not to permanently remove local control, but to help guide Dunkirk back to fiscal health. With the right framework in place, Dunkirk can move beyond crisis management and finally begin to rebuild with confidence.”

Assemblyman Andrew Molitor, R-Westfield, will be introducing companion legislation in the Assembly.

“The city of Dunkirk is facing a financial crisis that cannot be ignored any longer. By introducing this legislation, we are not only ensuring that the city has the oversight it desperately needs but also empowering local leaders with the support and tools to rebuild and recover. This is about providing the city with a chance to regain its fiscal footing and create a sustainable future for its residents,” Molitor said.

The City of Dunkirk Fiscal Recovery Act, sponsored by Borrello and now-retired Assemblyman Andy Goodell, authorized the city of Dunkirk to issue up to $18.5 million in debt to address its multi-fund deficit. However, a November 2024 audit by the Office of the New York State Comptroller reported that outstanding liabilities now exceed $20.5 million. The report also cited several ongoing challenges including delayed audits, faulty budget projections, and inaccurate financial records.