DID YOU KNOW...
The City is short on income by more than a million dollars.
The City is a million and a quarter dollars under budget on expenses.
The vast majority of income has been received for the current fiscal year.....
but there are still 5 more months of expenses.
In a shocking expose based on the current City of Wilmer Profit & Loss statement, mayoral candidate Joe Aldrich blasted the City Council on fiscal irresponsibility and the budget. The City planned to overspend current income by $4,900 according to the published budget figures. Last year's budget doesn't seem to be quite in balance. It doesn't take an accounting background to see a problem here, just take a look.
No "red flags" appear in the report because everything is "under budget", so almost any expenditure the City cares to dream up (like the Dewberry drainage project) can be said to be in the current budget. The problem is the income shortage of over a million dollars and the vast majority of property tax proceeds already received, and little chance of significant additional revenue in the remaining months in the current fiscal year. All the while, expenses continue to accrue regardless of the availability of funds to pay the bills.
The City Council approved a budget with known deficiencies, such as the tremendous over estimation of permit income because Whirlpool's windfall last year wasn't factored out of the proposed budget. At time of adoption, the budget was known to have overstated $135,000 in permit fees alone.
No wonder those special public funds accumulating in the Economic and Community Development Corporation accounts seem so irresistible to the City Council - Wilmer only has a bit over $175,000 in the bank to last over the next 5 months - each of the development corps has a similar amount of money in their accounts currently. Perhaps this is why these development corporation boards can't seem to get enough cooperation from the City to be able to schedule a meeting and the directors can't get access to the financial records.
At the time the budget was being discussed in public hearings, last year's new council was in a huge battle with Jeff Steele. It's beginning to look like they may have approved a budget with the intent of embarrassing Mr. Steele and then forgot to repair the damage once in office - so now eight months into the fiscal year, they've neglected to come to grips with the issues and the responsibility lies solely on the current occupants of the seats in the governing body to repair the problem. After several budget workshops, why have no corrections or changes been made? How much is this going to cost US?
Friday, May 4, 2012
DID YOU KNOW...