The Richmond Register

Viewpoints

March 7, 2010

Commissioners at fault for 2010 fiscal year deficit

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
  • Jim Waters Europe’s economic tremors offer useful lesson for Kentucky

    Americans paying even cursory attention to what’s happening on the other side of the Atlantic are about to get a stark reminder of an economic principle that too often gets pushed to the side – especially during troubling times: No government has ever taxed, spent or borrowed its way to prosperity.

    May 27, 2012 1 Photo

  • Bill-Robinson.jpg Why would anyone not vote?

    Should those of us who vote be disturbed that so few people voted in this past Tuesday’s election?
    Only 17 percent of Madison County’s registered voters went to the polls. And, not everyone who’s eligible is registered to vote.

    May 26, 2012 1 Photo

  • Ronnie-Ellis.jpg Republicans are making some noise

    FRANKFORT — Last week’s news was mostly about Tuesday’s primary election but some Republicans who were not on the ballot also had interesting things to say.

    May 26, 2012 1 Photo

  • Ike Adams Taking our Sunday night baths

    There in the head of Blair Branch, when I was growing up in the 1950s and ‘60s, we always took our weekly baths, even during cold weather, every Sunday night, whether we needed one or not.

    May 24, 2012 1 Photo

  • Michael-Barone-NEW-Color.jpg Obama pursues higher tax rates

    In the run-up to this weekend’s G-8 summit at Camp David, journalists have unfavorably compared European “austerity” with Barack Obama’s economic policies.
    European spending cuts, the argument goes, have hurt people and are arousing political opposition, while Obama’s proposals to keep federal spending at 24 percent of gross domestic product indefinitely are likely to succeed.

    May 21, 2012 1 Photo

  • Susan-Estrich-color.jpg Graduation day

    It’s that time of year. What’s the old song? “I can still remember...” And I do. It’s what I talk about when I’m invited to be a graduation speaker and what I write about every year at this time.
    It’s about all those painful memories.

    May 18, 2012 1 Photo

  • Michael-Barone-NEW-Color.jpg Recent news could cause panic for Obama campaign

    Is it panic time at Obama headquarters in Chicago? You might get that impression from watching events – and the polls – over the past few weeks.

    May 17, 2012 1 Photo

  • Jim Waters EPA goes medieval on Kentucky coal

    EPA goes medieval on KRoman legions? Horrific crucifixions? Sacking dissenters and making examples out of their deaths?
    These may sound like some of the gruesome tactics used by military commanders of the ancient world, but according to Al Armendariz, who, until recently, was regional administrator for the Environmental Protection Agency, it’s much more relevant to modern America than we’d care to believe.

    May 13, 2012 1 Photo

  • Bill-Robinson.jpg Don’t just pick out a card

    When Anna Jarvis launched the movement for a Mother’s Day observance in 1908, her intention was to have everyone write their mother a letter, putting some thought and sincerity into thanking and telling her what she had meant to them.
    Unsurprisingly, the idea caught on quickly and became very popular. But, Jarvis was disappointed with the outcome.

    May 12, 2012 1 Photo

  • Ronnie-Ellis.jpg Returning to a calmer situation

    FRANKFORT – After a two-month absence, I’ve returned to Frankfort where things seem calmer than when I left.

    May 11, 2012 1 Photo

Community Calendar
Loading…
Events by eviesays.com
AP Video
Beryl Makes Landfall on Florida Coast Service Dogs Help Wash. Soldiers Battling PTSD Raw Video: Heckler Bursts in on Blair Testimony Japan Farmers Plant, Seek Radiation-free Rice UN Blames Syrian Forces for Shelling Houla Raw Video: Gay Protest Blocked in Moscow Vatican in Chaos After Butler Arrested for Leaks Jimmy Carter Endorses Egypt's Election Results Biden Addresses West Point Graduating Class Dozens of Children Killed in New Syria Attack Raw Video: Activists Allege Massacre in Syria NJ Man Charged With Murder in Death of Patz Support, Fun for Kids of Fallen Soldiers at Camp Fugitive Penguin Caught, Returned to Aquarium 50 Years Later, Underground Fire Still Burning Light Show Transforms Sydney Opera House Raw Video: Unruly Passenger Restrained in Miami Raw Video: Robber Uses Drive-thru Window Raw Video: Dragon Arrives at Space Station Calif.'s Coronado Named Nation's Best Beach
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Popular Searches
Powered by Local.com
Poll

A recent health ranking listed Madison County as the 20th healthiest county in the state. It measured factors such as exercise, access to health care and smoking. Do you smoke cigarettes?

Yes
No
I used to, but I quit.
     View Results