Tuesday, January 22, 2013

AUDITOR: FUND BALANCE SHRINKING

     City Council heard from the firm auditing city books, the fund balance is shrinking, not as a result of revenue issues, but the exploding pension costs which went from $1.7M in 2010 to over $3.1M in 2012.  The numbers combine with a sluggish fourth quarter in sales tax revenue to heighten concerns, including looking for ways to reduce spending by spring.
    Council also learned of another alcohol related issue at the Arena as the beer vendor for the Privateers games is having trouble getting their temporary permit extended beyond February 1st over a state insistence they sell food exclusively. It's too complicated to explain here, but would make your head explode.
    Council instructed staff to get it settled by next Monday.
    Bunch of other stuff done....but my dinner just arrived...

2 comments:

Anonymous said...

If your experts can't forecast a doubling of the city's pension obligations in two years, something's wrong.

Anonymous said...

“…heightened concerns” is sounding a bit like school superintendent speak.

Obligate the taxpayer to pay for sweetheart labor contracts then lament that there is nothing to be done in cutting budget expenditures due to “contractual obligations”.