News:In the 03-Nov-2008 issue of the Daily Independent reporter Nathaniel Liedl postulates that the City Budget is out of out of alignment and is a serious election issue. This question on the eve of the election poses a serious threat to the overall City Council and to the Daily Independent's recent editorial endorsements.
Suspension:We understand within the City prior to the suspension of the previous Finance Director the current City Manager reorganized the Budget Function and this was well documented by Internal Memo. In essence all Budget Management was taken over by the current City Manager and Budget Officer.
Why Now?:Why question the budget at this late hour? Evidently the DI has uncovered evidence the of the current Management to get the job done.
Correction:Assuming that the City's Staff is correct, that it is a management issue not a issue, then the correction of the mistake is rather simple, repost the data on the budget summary. This of course will lead to an increase in total transfers out (expenditures) and a decrease in fund balance (reserves). The overall impact is that reserves will fall by ~approximately $6.3 million in various funds. The real implication is one that the City can draw for itself and the readers can also draw for themselves-- the budget has been over appropriated (the City created too many budgeted expenditures in FY 09).
Now, if the alternative is true, that is it is not a management issue but a money issue the bottom line is that the City will have to review the real revenues and real reserves and adjust the appropriations to what is the true available actuals. None of this has anything to do with what Mr. Avery describes as changes in the budget process.
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