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Monday, July 11, 2011

Living on the Edge...of INSANITY

It finally came to me tonight...the way to explain in a sound-bite what is SO VERY WRONG with the TCU argument that "the money is there" in our budget to fund a library.

You see, they want the city to use the "emergency fund," or unallocated/undesignated reserve that the city must keep on hand for...you know...EMERGENCIES. Over the course of our three-year rolling budget, the city WILL have to dip into it to cover BUDGETED expenses.

That's normal. There's a wee but of cushion to allow for that.

By the end of the three year cycle, though, that fund will dip to approx. 13% of our general fund balance -- a figure BELOW the suggested levels, and a position that puts us in grave peril. It will leave us at risk of the following:

-- elevated Fiscal Indicator Scores (triggers us even further up the watch list)
-- take over by an Emergency Financial Manager
-- further loss of bond rating

Remember...that's just using enough to balance the budget over the next three years.

That's with NOT USING THE REST FOR ANYTHING...not using it for any emergency or other unplanned shortfall.

TCU wants to fund the library with the rest and leave us DEPLETED.

That sounds a lot like...oh, I don't know...raiding our 401K's to pay for the cell phone bill every month for the next three years.

Doesn't YOUR financial manager offer that up as a sound solution to a financial shortfall???

I didn't think so...so why would ANYONE listen to the TCU or any council candidate who suggests the same??

VOTE YES ON AUGUST 2...Save the library...SAVE TROY.

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