Dunkirk Mayor Kate Wdowiasz

DUNKIRK — Dunkirk Mayor Kate Wdowiasz fired back Saturday regarding comments from state Sen. George Borrello and Assemblyman Andrew Molitor detailing their stance on a $13 million loan for the city and their support for a control board.

“Let me be clear from the outset: there will not be a state-imposed control board in the City of Dunkirk this year,” she said. “The claim that such a drastic measure is necessary is not only false — it is a fear-based political talking point designed to mislead residents and undermine confidence in our city government.

“Contrary to the misrepresentations circulating in the media, the city of Dunkirk did not receive $18.5 million in emergency funds. Through the Dunkirk Fiscal Recovery Act, the city was granted the authorization to pursue up to $18.5 million in deficit financing using the State’s bond rating–not a direct cash payment. This authority was intended to help the city stabilize its finances and recover responsibly. The delay in executing this financing lies squarely with the New York State Comptroller’s Office, which has failed to certify our debt despite repeated submissions and requests for action.

“I want to publicly thank Gov. Kathy Hochul for acknowledging the seriousness of Dunkirk’s fiscal situation and for stepping up with a proposal for a $13 million loan to help the immediate financial crisis.”

In a joint statement by Borrello, R-Sunset Bay, and Molitor, R-Westfield, both said Friday they are “deeply disappointed and concerned” over the proposal that includes a 7.75% interest rate to be repaid over 15 years.

Both state officials note the loan is not a solution because it leaves the city “deeper in debt.”

“This would cost taxpayers millions in interest while doing nothing to correct the underlying problem: chronic mismanagement and a lack of oversight,” they said.

Wdowiasz disputed that point. “The governor’s proposal is not a ‘blank check,’ nor is it without oversight,” she said. “It comes with reporting obligations and clear expectations–and it will provide the city with the time and resources necessary to implement long-term financial reform without an increased tax burden to the residents. Yes, the loan carries interest–as do all loans–but it is a responsible alternative to the bureaucratic, expensive, and disempowering solution of a control board.

“Senator Borrello and Assemblyman Molitor’s insistence on a control board is not based in fiscal responsibility — it’s rooted in political opportunism. Their inflammatory claims do a disservice to our residents and show a disregard for the facts.”

The mayor also disagreed with the state officials’ sentiment that the city is heading toward bankruptcy. “We are stabilizing our finances with support from the Governor’s office, cooperation from our Common Council, and the tireless work of our local employees,” she said. “We are prepared to make the necessary decisions to put this city on solid financial ground–but we will not sacrifice our autonomy or our residents’ trust in the process.”

Her statement also noted the financial issues plaguing the city happened before she took office in January 2024. “The audits for fiscal years 2023 and 2024 — once completed — will show definitively that the current fiscal crisis is the direct result of years of gross mismanagement under the previous administration. This includes unchecked spending, budget manipulation, and a failure to provide timely or accurate financial disclosures to the state. My administration inherited a financial mess that was buried beneath years of irresponsibility and neglect.”

On Saturday, the OBSERVER included details on the 2023 audit. That report noted a city fund balance that plummeted from $5,847,506 as of Jan. 1, 2019, to a deficit of $6,301,023 on Dec. 31, 2023.

“Since taking office, I have worked relentlessly to bring order and transparency back to City Hall,” the mayor said. “I have identified structural inefficiencies, imposed fiscal discipline, and initiated the long-overdue submission of financial records that were ignored in prior years. While recovery will not be instant, we are on the right path–and we are doing it with accountability and honesty.”

In concluding, Wdowiasz asked the state representatives to work with the current city administration. “I urge Senator Borrello and Assemblyman Molitor to put aside the political theater and work with us–not against us. The people of Dunkirk deserve facts, not fear,” she said. “They deserve local leadership, not state takeover. And they deserve representatives who build solutions, not headlines.”