A ride from Brooklyn to Dunkirk is a distance of 412 miles. Sen. Andrew Gournades may be eight hours away from Chautauqua County in his New York borough, but his introduction of a bill — through a request by New York Gov. Kathy Hochul — hits close to home.

Gournades is the chief sponsor of the $13.7 million loan to bail out the city of Dunkirk in its effort to financially right the troubled municipality. Dunkirk Mayor Kate Wdowiasz said the loan will go to pay off the Revenue Anticipation Note for Dunkirk that comes due in July. State Sen. George Borrello is not of the same mindset.

“New York City state Sen. Andrew Gounardes is backing a bill that would saddle the city of Dunkirk with millions in long-term debt, a plan that offers a temporary bailout without oversight that will lead to another double-digit tax increase or even bankruptcy, all at the expense of taxpayers and fiscal responsibility,” he wrote in a Facebook.

Spelled out, the bill “would authorize an additional debt and financing option for the city of Dunkirk … as a matter of last resort, to ameliorate a condition of severe fiscal difficulty and potential lack of market access by the city. Dunkirk presently has a $12.7 million principal revenue anticipation note with a maturity date of July 24, 2025 and lacks sufficient cash and potentially lacks market access for financing options to repay such note’s principal and interest (totaling approximately $13.7 million). The inability to pay such revenue anticipation note could have significant negative financial implications, including a loss of credit access or increased costs of borrowing for not only the city, but other municipal debt issuers throughout the state of New York.”

While Wdowiasz backs the action, it appears support for the bill is sparse in Western New York. Both Borrello and Assemblyman Andrew Molitor, R-Westfield, went on record last week noting they both believe a control board — not a loan — is a better option.

Proposed legislation also notes “a condition of severe fiscal difficulties exists in the city of Dunkirk as a result of expenditures exceeding revenues over numerous years, with the substantial accumulation of deficits expected for the close of the city’s fiscal year 2024. Such condition, including late and overdue financial statements, has contributed to a current loss of confidence by investors in short-term and long-term obligations of the city of Dunkirk as demonstrated by major municipal credit rating agencies withdrawing credit ratings of the city.”

Since March 2024, the city has had a bond rating of BBB-, the lowest investment grade. That rating was later withdrawn due to its poor financial state.

“If you’re a Dunkirk resident and you’re tired of decisions being made for your community by those outside of it, call Sen. Gounardes’s office at 518-455-3270 and urge him to withdraw the ‘Hochul Loan Shark Bill’ for Dunkirk,” Borrello wrote.