Dunkirk’s waterfront will be filled with energy to celebrate the Fourth of July this weekend. But without the state loan, city finances are underwater.

Amid the bustle and energy of a buzzing Fourth of July celebration in Dunkirk that draws thousands to the city and its waterfront is a reluctant sense of relief by some. For the time being, a $13.6 million loan with a 7.5% interest rate from the state of New York approved last week will allow the government to make good on its $12.7 million Revenue Anticipation Note that comes due in three weeks.

That action, which was announced last week by Gov. Kathy Hochul, is one more lifeline for the distressed municipality that appears to be running out of life preservers. “Having spent years in local government, I understand the challenges our local leaders are experiencing, and this financial support to the city of Dunkirk is necessary to avoid a potentially devastating default that could ripple far beyond Dunkirk’s borders,” the governor said in announcing the relief. “This legislation reflects the state’s commitment to stabilizing local governments in crisis while protecting the broader financial integrity of New York municipalities.”

But it does nothing to protect taxpayers from selfish decisions by elected officials. It just lets them off the hook.

After a property tax increase of 84% was approved last December, it is obvious that no one tied to the 2025 city budget process had a plan to attempt to repay the Revenue Anticipation Note issued in March 2024. Maybe city officials were banking on the state forgiving the handout, which they could still do in the future. Or, quite possibly, city leaders were quietly hoping to go bankrupt.

None of these scenarios are possible in the private sector, which closes its doors when it can no longer operate fiscally. Shoddy local government, no matter how much it aggravates its residents, never runs out of second chances to worsen the wrongs.

No one in City Hall wanted a control board — not even the three Republican Common Council members who spoke out against the loans that included Abigail Zatroski, James Stoyle and Nancy Nichols. By going that route, elected officials said, it would relinquish local decisions.

How is that such a bad thing considering where we are today?

One of the most insulting actions taken by the Common Council during the simmering crisis is something this corner will likely never get past. City property owners who were asked to almost double their annual costs should not either.

Without any knowledge whatsoever of the city’s finances, council members took advantage of taxpayer money in the form of American Rescue Plan Act funds totaling $300,000 to disburse bonuses to themselves and the 160 employees.

Though endorsed with a 3-1 vote during the Nov. 16, 2021, council meeting, smug members would not listen to those who spoke against what they considered misuse of that money. “I think it’s a bad idea, I’m opposed to it. I think it sets a bad precedent,” said Gary Frederickson before council’s approval in 2021. “It’s money that should be used to benefit all city residents, not just city employees. I think it separates city employees from city residents and taxpayers.”

Those sentiments meant nothing to the ringleader of the bonuses — then First Ward Councilman Don Williams, who proposed the legislation as retribution after being defeated in his run for re-election only days earlier. “There are a couple different municipalities that are doing the same thing that we’re doing with the ARPA money,” he said, citing Cattaraugus and Erie counties. “It’s something that is legally able to be done.”

Even if the law was on Williams’ side, the city’s empty wallet was not. Recently released audits show just how mistaken he was.

In 2021, Dunkirk’s fund balance began at a $101,915 deficit. By the end of that year, it was $1,042,608 in the red.

No elected official had an appetite to watch the city’s fiscal pantry. But those same individuals were willing to eat out of it — especially through this bonus plan.

In favor of the measure that November 2021 evening were former members Williams and Paul VanDenVouver as well as current Councilwoman Nichols. Martin Bamonto, former member, opposed the plan while Stoyle, who likely would have approved the measure, was not in attendance at that meeting.

Looking at the big picture, the $300,000 is a small slice of the city’s misspending. But the message behind the decision speaks to pompous and reckless deeds that occurred with barely any knowledge by city leaders for five years that added up to the current troubles.

Entering the city’s south side on Route 60 is a sign that thanks Democrats for the 84% property tax increase. Be assured, through self-serving bonuses and a blindness to the dangers of overspending, doomsday in Dunkirk has been a triumphant bipartisan effort.

Republicans have controlled the council since 2020. Their edicts, including the use of federal funds to pad their pockets, were far from conservative — and without a lot of apparent guilt. If there was, the least they could do is pay back those bonus funds they took from city coffers.

But that is a big ask. It is likely they needed that cash to pay the recent exorbitant tax increase.

John D’Agostino is the editor of The Post-Journal, OBSERVER and Times Observer in Warren, Pa. Send comments to jdagostino@observertoday.com or call 716-487-1111, ext. 253.