Wednesday, December 10, 2008

Councilman Bradley Responds to his "On Budget" Statement

This morning I received a great reply from Councilman Bradley with regards to his statement we are "on budget." (See Here) I thank him for responding and helping us shed some light on my budget questions regarding South Ogden. Open communication with the council is crucial to our success.

Here is his email:

Thanks for your question. I went back through the newsletter to see what could have been inaccurate. The only thing I can see which might have cause your question is the final sentence which says something to the effect that currently the city is on budget and is not looking at a shortfall or a tax increase. Actually, that statement is absolutely accurate. Keep in mind, however, that I am looking at the budget overall and not just the last report. Perhaps it could have been clearer, but space limitations left me with what I have. Why is is accurate? In the October 7th meeting it was explained. The budget as it stands today shows a deficit. However, the budget always shows a deficit at this time of the year. In fact it will show a deficit until about March. This is because we have yet to recieve certain revenues from the state (namley franchise tax) and some property tax from the County. What Scott explained was that, while it shows that we are in a deficit, we are actually on track. As long as sales tax remains at least flat, we should come in on budget but not have an excess. What I was attempting to point out (perhaps inartfully) is that many other cities are projecting a deficit long term. We are still on track to meet our budget.

I have replied with the following two questions:

  1. The city manager explained in our city council meeting that we are normally a little behind or right on at this time. However due to the bad economy we are lower than normal. $300,000 to be exact. Doesn't that imply we are not on budget?
  2. Now that sales tax is no longer flat, what is the next step for South Ogden City?

Is he right? I am wrong? I could be wrong, it wouldn't be the first time. However, I will admit it still seams to appear we are not on budget, at least not any more.

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