Commissioners at fault for 2010 fiscal year deficit

Viewpoints

March 7, 2010

By Nick Lewis Register News Writer The Richmond Register Sun Mar 07, 2010, 02:00 PM EST

RICHMOND — If the Richmond City Commission would just take a look in a mirror, they will see who is responsible for a deficit of $1.8 million coming at the end of the 2010 fiscal year. They can’t make excuses or point fingers as they have up to now because this one rests solely on their shoulders. This large deficit simply is a result of their lack of action on expense-saving initiatives submitted last fall at the height of the financial crisis.

Interim city Manger Jimmy Howard put many recommendations in front of the city commission that would substantially have reduced the deficit. They failed to act on every one of them. Had they acted then, the deficit would have been much smaller and much more manageable in addressing budgets for 2011 and beyond.

Based on financial statements, it appears the financial crisis is improving; however, a more detailed analysis presents just the opposite. Documents obtained through open records requests were analyzed in depth using assumptions based on current trends. It is my opinion, using this process, that the city will have a large deficit and that is unacceptable.

What is even more disturbing is that when the following information is applied, the deficit would have been projected over $3 million. Here’s why. The city received $600,000 in back revenue from Richmond Utilities for fiscal years ending 2008 and 2009. It also borrowed $600,000 from a police and fire retirement fund to cover operating costs. This revenue helped mask what would have been a $1.3 million deficit instead of the $128,000 that was reflected on the Dec. 31 financial statements.

As you can see, the financial crisis is not improving and until the city can control its spending, it never will. Large deficits will be the norm because future revenue streams, based on current tax structures and fees, will not substantially increase over time. It will never be enough revenue to sustain current spending trends. It will never put them in a financial position to replenish the investment account which must be done. Reaching financial stability is nothing more than just an understanding of basic math and basic business principles. They must accept the reality of this crisis and just act.

With that being said, this city commission can no longer ignore Howard’s recommendations that will put this city on the right path to turning things around, but the commission chooses to do nothing. They continue to make excuses as well as deny responsibility while placing blame on others at city hall. They are the ones that have the power to turn this city around, but they seem to remain oblivious to what must be done, regardless of who is leading the city.

Finally, given the severity of the financial crisis and the city commission’s failure to implement initiatives that would have reduced this $1.8 million deficit, citizens must seriously question whether these individuals are capable of leading this city now or in the future.

Text Only

Viewpoints

Education a focus in Senate this week
FRANKFORT — The Senate passed several bills this week. Of these bills, three education bills are of particular importance.

February 5, 2012 1 Photo
Redistricting ruling offers collateral benefits for voters and taxpayers
Slowing down Frankfort’s redistricting march offers collateral benefits for voters and taxpayers.

February 4, 2012 1 Photo
In defense of southern-fried Paula Deen
Celebrity chef Paula Deen lustily massages salt into "a mighty fat hog,” as the dogs circle the cooking island. For the yams, “I’m only using half a stick of butter,” she drawls before breaking into high laughter. Deen’s popular Food Network show does southern cooking with no brakes on the pork fat, butter, sugar or other dietarily incorrect ingredients.

February 1, 2012 1 Photo
GOP makes Obama look good
The Republican field debated for the 19th time Thursday night, and once again, the media promised us it was going to be a “make or break” event.
Don’t believe the media.

January 30, 2012 1 Photo
The real State of the Union
Has Barack Obama learned nothing in three years?
During his State of the Union address Tuesday night, he promised “a blueprint for an economy.”
But economies are crushed by blueprints.

January 26, 2012 1 Photo
Looks ain’t everything
I guess we can blame it on television or the movies, that looks are so important in America, especially to young folks. These two mediums place such a premium on beautiful, shapely women and handsome men that most young people believe if you do not possess these attributes you are nothing.

January 25, 2012 1 Photo
It’s politics as usual
FRANKFORT – I’m betting that if you’ve followed the redistricting contortions birthed by the Democratic controlled House and Republican controlled Senate, you’re hardly shocked.

January 22, 2012 1 Photo
Cherry picking and charter schools
National School Choice Week is Jan. 22-28.
There’s little to celebrate in Kentucky – one of only nine states without a charter-school law.

January 21, 2012 1 Photo
House knee-deep in important issues
Last week was filled with impassioned and sometimes heated discussions about redistricting as we struggled to meet the constitutional mandate to redraw boundary lines based upon U.S. census data.

January 18, 2012 1 Photo
Senate considers budgetary, drug issues
The second week of session saw several significant issues begin to be debated in committees. Drug abuse, weaknesses in child-protective services, and the state’s debt level were all topics of discussion. The committee process is intended to inform the legislators of the pros and cons of each bill. Lively debate accompanied each piece of legislation.

January 17, 2012 1 Photo
More Viewpoints Headlines

Viewpoints

Search Results

Commissioners at fault for 2010 fiscal year deficit

Have you ever attended a meeting of a local government agency or taxing district?

Site Map