Common Council Clash Over City Finances Sparks Heated Meeting: Passes $7.9 Million Bond

The City of Cortland Common Council narrowly averted a financial crisis Tuesday night, approving a $7.9 million serial bond to cover massive infrastructure cost overruns. The resolution initially failed to reach a two-thirds majority but passed on a second attempt following a heated hour-long debate over who is to blame for the city’s empty pockets.

Finance Director Chuck Shager laid out a grim reality: the city essentially “borrowed” from itself to finish major projects on Main Street, Clinton Avenue, and Groton Avenue, and now the bill is due. While the city was authorized to borrow $25 million for water and sewer work, it overspent the Downtown Revitalization Initiative (DRI) budget by $7.7 million.

“That money was paid out of the General Fund, Water Fund, and Sewer Fund,” Shager explained. “If you do not approve this… those funds are going to take a hit. Meaning that will be another deficit added to those funds.”

Shager warned that without the 30-year bond to replenish those accounts, the city would be unable to pay its bills by the end of the year and would face a credit rating downgrade from its current BBB status.

The debate quickly shifted from accounting to accountability. Councilmember Brian Tobin, a former mayor, questioned “add-on” projects—like the Groton Avenue parking lot and basement renovations—that he claimed lacked financial transparency.

“I don’t recall anything that Council approved in terms of what that parking lot was going to cost,” Tobin said. “We are not getting any sort of detail about what those expenditures are.”

Councilmember Tom Michales fired back, pointing the finger at Tobin’s previous administration for delaying the project until costs skyrocketed. He defended the decision to replace aging “shot” infrastructure now rather than later.

“You don’t put a band-aid on a project and expect your aging infrastructure to last another 20 years,” Michales told Tobin. “You have no concept, Brian, of construction. I can see why you let the next administration try to handle this for you.”

Mayor Scott Steve attributed the $7.9 million gap to a perfect storm of COVID-19 inflation, prevailing wage increases, and unforeseen engineering hurdles, such as unmapped utilities and moving water mains to accommodate National Grid vaults.

Despite the cost, Steve argued the results speak for themselves: “Property values have increased, sales have risen, and new businesses are coming to Main Street.”

The bond initially failed when Tobin and Councilmember Tom Conlon voted “no.” Conlon expressed frustration that the city lacked a “plan of attack” for its existing $2.5 million deficit.

The deadlock broke only after Corporation Counsel Randall Lewis offered to facilitate a formal meeting between the finance committee and city leadership to ensure better transparency moving forward. Appreciative of the compromise, Conlon rescinded his “no” vote.

The bond passed on the second attempt, with Tobin remaining the sole dissenter. While the immediate cash flow crisis is resolved, the city still faces a $2.5 million shortfall that will require “major financial decisions” before the year is out.