The Dunkirk Observer reports the City of Dunkirk’s Treasurer’s Office has been ordered closed Tuesday by the New York State Comptroller’s Office.
Dunkirk Police posted on social media that they worked together with the mayor’s office to assist the Chautauqua County District Attorney’s office at the direction of the State Comptroller’s office. Police said the treasurer’s office was then secured following a subpoena by a grand jury.
The treasurer’s office is responsible for cash management, along with collecting property tax payments and water payments. It is unclear when the office is expected to reopen.
The Observer reports that City Treasurer Mark Woods has been elected to the position for more than two decades.
The city is currently facing a $16 million deficit in its $26 million budget.
City officials have credited the deficit to past issues at City Hall, a loss in population and the continued effects of the unexpected loss of its largest taxpayer in NRG Energy when the state shut the plant down back in 2016 — an entity that accounted for $3 million annually.
The state agreed to provide assistance through the Dunkirk Fiscal Recovery Act, but required the comptroller had a role in their budget and its balancing.
That led to an 84% property tax hike in this year’s budget set to take effect this spring after a small hike in 2024 and no increases for years before that.
WIVB reports Dunkirk Mayor Kate Wdowiasz said Tuesday at a common council meeting that the investigation remains ongoing, saying, “This measure today to close the city treasurer’s office was an action taken to preserve documents contained within that office. This action was set in motion to the discovery of questionable accounting practices which were brought to light through new policies, procedures and enhanced oversight measures implemented by me to safeguard public funds.”
Wdowiasz did not provide any additional information at the meeting, but said she will as the investigation unfolds.
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