By: Libi Uremovic | Original Article at patch.com
GENERAL FUND BANK ACCOUNT OVERDRAWN:
Busch: “Everyone in the room is probably familiar with the City’s Financials; there’s a negative cash in the General Fund. It is clearly borrowing from pooled cash to operate. Revenues, we believe, may be insufficient to meet prior expenditure levels. What we’re projecting could be revenues below what is budgeted last year. We have to deal with the negative cash and fund balances in the General Fund as part of this budget process.”
Deis: Initial Observations: The City hasn’t been living within its means. I think you know that with operating deficits from previous years which produced a negative fund balance in the general fund. Department Budgets have been exceeded in past years without repercussions or discussion. It is critical that once you adopt a budget it’s sacralized that it isn’t exceeded unless it’s brought back with an explanation and plan to amend the budget or change expenditures.
BUDGET CUTS WILL HAVE TO BE MADE:
Busch: “What we’re projecting could be revenues below what is budgeted last year. We have to deal with the negative cash and fund balances in the General Fund as part of this budget process.”
Deis: “I can say with confidence that budget reductions are likely to be required to balance the budget going forward”
THERE ARE NO RESERVES:
Busch: Most public agencies have multiple reserves for vehicle replacement, insurance, fiscal emergencies. You’ve been told that you have a Reserve, but it’s Not an available Cash. It’s a Fund Balance Number on an Audit Document.
NO MONEY BACKING CITY’S ‘SELF INSURANCE:
Busch: You’re self insured for a certain dollar amount. I don’t believe those monies have been set aside either. As part of the budget we may recommend a reserve fund for insurance that’s not in the general fund; it’s a budget item, so you can at least set aside for self insured reserve.
$2 -$3 MILLION IN MITIGATION FUND IS FOR ALL MITIGATION FEES, NOT JUST FIRE STATION
Fire Station Mitigation Fees represent 3% of total Mitigation Fees.
Busch: We do not. We have a general idea of how much is in the mitigation fund, which is $2 or $3 Million, but we are not able, at this point, to break it down.
Beaumont Special Session July 28, 2015 Transcript: http://podcast.ci.beaumont.ca.us/CC_2015-07-28_agenda.htm
The City of Beaumont held a Special Session on July 28, 2015. Urban Futures presented a overview of the City’s Revenues: http://www.ci.beaumont.ca.us/DocumentCenter/Index/1002