Portage clerk says city is 'scrimping' to make it through the year
NWI Times
November 05, 2018
https://www.nwitimes.com/news/local/govt-and-politics/portage-clerk-says-city-is-scrimping-to-make-it-through/article_569aae15-23fb-5779-aa1f-a38b4ec3527d.html
PORTAGE — Clerk-treasurer Chris Stidham said this past week the city will be "scrimping" and "struggling financially" to make it through the year.
"It is worse than I've seen in my seven years" as clerk-treasurer, said Stidham about the state of the city's budget.
Stidham contends the city could be as much as $700,000 in the hole by year's end between a $450,000 cash deficit and anticipated $250,000 in unpaid bills.
Stidham, who is considering a run for mayor in 2019, blames Mayor James Snyder for the state of the city's finances.
Snyder, through representatives, is denying Stidham's claims.
Stidham said the $250,000 in unpaid bills has occurred because nothing had been put in the budget to pay for some expenses. For example, he said, the Board of Works approved a lease for new police radios in 2017, but Snyder failed to put any money in the 2018 budget to pay for them. In addition, the city owes $100,000 per year for building department software, but that cost, too, was never budgeted.
Stidham said the mayor presents a budget to the City Council, which approves the document and the mayor is expected to live within the budget's means.
As for the $450,000 cash deficit, Stidham said they have worked that into the 2019 budget, but the move will make next year's budget even tighter.
Stidham also said Snyder "mismanaged" the city's Community Crossing Grant, forcing the city to repay the Indiana Department of Transportation $170,000 this year.
Sandy Kolb, the city's project manager, said that isn't true. She said she manages the grant and that INDOT was reimbursed that amount after work on Central Avenue and Stagecoach Road came in under budget. The grant didn't allow the city to use the money for any other project and had to be returned.
Steve Dalton of Cender & Co., a municipal financial firm, said the city's budget is in "good health," but the general fund is lower than what it should be and needs to be replenished.
"We believe 'struggling financially' is too strong a phrase, but the city definitely needs to budget within its means," said Dalton, speaking for Snyder.
Dalton said Snyder and Stidham agreed three months ago to put $450,000 in the 2019 budget as a placeholder for a potential deficit and the 2019 budget proposed by the may and adopted by the council is balanced.
He said the city can draw from other funds, such as riverboat, cable TV, wheel taxes and others, which have substantial balances, to support city expenses.
The council did approve transfers totaling some $83,000 at its recent meeting, but Stidham said that won't cover the bills. In addition, he said that is much less than the $200,000 they usually "cobble together" from excess funds and the transfer is coming sooner in the year than usual.
The council also approved temporary interfund loans to ease cash flow, but Stidham said those would have to be repaid at some point.
Dalton said both Stidham and Snyder are correct in some points.
"Chris is right in that the general fund is a little tighter than it should be. The mayor is right that it is a balanced budget. I feel like the city is in a good spot," said Dalton.
"We have all agreed to re-build cash reserves by spending less than anticipated revenues in 2019 to bring the general fund back to positive," said Dalton.
While 2019 might be tight, Dalton said he anticipates the city's budget will rebound by 2020 due to an expected increase in revenues from increasing income taxes and increasing property values, which will ease circuit breakers.
No comments:
Post a Comment