"Budget Enthusiast"
(A name given to me by the City Controller since I regularly attend the Council Meetings and 14 Budget Hearings) |
Cash Reserves (City's Savings Account)KEY PAGES: If you can't download all of the 2019 Adopted Budget Book, there are some key pages I would like you to look at. Pages 44-47, 54-55
If you are not familiar with accounting, the ( ) around the number means it is negative or "in the red". Look for all the numbers between ( ) for areas of concern. The Cash Balances: Beginning of 2018: $291,289,923 Beginning of 2019: $202,912,999 End of 2019: $169,706,940 (Projected) That's a drop of $121,582,983 The Administration calls it a "Spend Down". So what happens when the City's Cash Reserves Drop? 1. We get interest income off of this, just as you do with a savings account, and at this current level the income is around $700,000 a year and this will decrease. There might be a slightly less drop if interest rates rise. 2. Our Bond Ratings will drop and this means it will cost more interest to issue/borrow more funds. Our rating has already dropped from an AA2 down to an AA-. 3. We have less buffer for when there are catastrophic events like floods or market crashes like we had in 2008. 4. If you look on the sewer page, you will see we need anywhere from $300M to $700M. A court can rule our City has to pay fines and implement the full sewer changes. Is it legal to "spend down" our savings account/cash reserves? Yes The Question is, will it be a wise financial strategy for our future? |
NOTE: Pay close attention to the 5th column that says, "Surplus/(Deficit)". When you see number in ( ) that means it is a NEGATIVE Number or "In the Red". There are Cash Balances to cover the deficits, but you will notice on the very last line, the City's "Savings Account" went from $291,289,923 (far left at the bottom) down to $169,706,940 (far right at the bottom). That's a drop of $121,582,983. That is over $121 MILLION Dollars. That's a 58% DROP in our Reserves.
NOTE: Look at the LAST LINE of the statement above. OVERSPENDING in 2018 by OVER $97 MILLION. OVERSPENDING in 2019 by over $32 MILLION. Make sure the Mayor and Council people you are electing know how to BALANCE A BUDGET and didn't create this budget to begin with.
NOTE: This is a VERY LARGE Download. 19.3MB
Make sure the people you are voting for have a financial plan to address these issues on top of the 2020 Circuit Breaker Limitations.
It is my goal as an Advocate to involve YOU in the process.
If these are your priorities, I need your VOTE and Donations!
My campaign is a grassroots one. Donations are appreciated and helpful!
If these are your priorities, I need your VOTE and Donations!
My campaign is a grassroots one. Donations are appreciated and helpful!
NOTE: My donation app is by ActBlue. Your receipts will come from them.
