So can $1.5 million in free cash ever be problem?
It wouldn't seem to be the case. The city should be commended for running a bit in the black in these tough financial times, as the Daily News reports today. A surplus certainly beats a deficit as many other communities can attest.
But we wouldn't be us without looking at potential pitfalls.
Schools - Ed Cameron mentioned the possibility of restoring some lost programs at the school. I'm not sure if the appetite is there, particularly since this money might be a one-time shortfall if tax receipts take a dip next year in a sagging economy. But what impact will this $1.5 million have on any override or debt exclusion votes for the new schools? Will people feel the city has enough to pay debts without more taxes?
Candidates - Anyone hoping to run on the platform that the city is fiscally mismanaged may have a hard time getting traction. The case would be much easier to make with a $1.5 million deficit.
Unions - Will public employee unions be emboldened to ask for more next time around. Union negotiations with Holaday have been largely uneventful - with the firefighters as the notable exception. Could that change?
Personnel - Does the city's decision to cut the part-time conservation commission agent seem an overreach now? I think the salary with that position was approximately $30,000. A surplus of this magnitude suggests that might have been money well spent. The deal to share a conservation agent apparently fell apart, according to the News.
Just some quick thoughts. I think city officials might have done themselves a favor by clearly spelling out what financial cuts/decisions have been made to bring this budget in line, such as personnel and program cuts. This would have made the surplus look more like the result of good management rather than good fortunate (and new revenue streams like the meals tax and, to a lesser extent, parking.)
But once the state certifies the existence of the cash I'm in complete agreement with the horde that we've got some infrastructure in woeful need of improvement. SIDEWALKS!
P.S. Cameron does a good job of putting the free cash total in perspective on his blog.
6 comments:
i guess we can get rid of the meal tax now
Apparently Anonymous was never taught (or didn't learn) the meaning of the phrase "one time money" during those Tea Party Municipal Finance Subcommittee meetings...
- The Carrot
didn't property taxes go up this year?
Sidewalks are one of the (vanishingly few) areas which are appropriately paid for by everyone and managed by the government.
On that one issue only: Tax and spend!
Funny you say that. Most of the communities in the US charge homeowners for sidewalk repair or require them to make repairs. I'm gonna blog about that someday.
[1] Short phrases like "Tom's Take" cannot be copyrighted. They can become trademarks if consumers identify you as the unique source of origin of the column.
[2] Those suburbs without sidewalks creep me out.
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