By: Libi Uremovic | Original Article at patch.com
The Budget starts with a 5 Page Intro Letter from Acting City Manager Elizabeth Urtiaga with the following outline:
BEAUMONT GENERAL FUND : Broken into three groups: Service, Budget, and Cash Solvency
General Fund Insolvent from Budget and Cash Basis
General Fund Cash is Negative $10 Million – not be positive for several years.
“This did not happen overnight. The City has been budget insolvent for years.”
“The City does NOT have funds to adequately sustain our current level of services.”
BANKRUPTCY – NOT A VIABLE OPTION
There’s no debt to justify a Bankruptcy – All of the debt was pushed on ‘Future’ property owners.
HOW DID WE GET HERE
A Long Time in the Making – General Fund has been running Deficit since 2007
Living Beyond our Means and Lack of Transparency
Lack of Budget Controls
Lack of Internal Controls
PLAN TO GET HOUSE IN ORDER
#1 Stop the Bleeding
#2 Multi-Year Work Out Plan
#3 Reconcile Capital Improvement Plan
#4 Financial Management Policies
PROPOSED BUDGET
$4 Million in Reductions
page 8 – Reductions/Additions in Staff – 25 Positions Cut
page 10 – State Controller’s Office $5 Million additional reimbursements