According to the article, Matt Dixon said:
"Again I want to emphasize that this is preliminary and we're still going to be working on this as we go," City Manager Matt Dixon said. "Right now based on the numbers we put in, we have a balanced budget with a very small $5,000 surplus."
This is great news, the budget is finally balanced. However according to Mr. Reinhart, Dixon and the council are already asking for people to submit budget requests for capital and one-time money projects. No, we are not bringing back the all expenses paid Christmas dinner to the Timbermine just yet. However we are asking for people's wish list. This is like opening the flood gates during a tsunami.
With only a projected surplus of $5,000, if revenues actually materialize, I think we are jumping the gun in asking for projects. Not to mention this was the same team that budget for a 2% sales tax increase in the middle of a recession because CNN said it was over. (See Here) I wouldn't start looking at projects yet, you can hold surplus for awhile longer until we know we are out of the clear.
Comments welcome.
2 comments:
I really feel that South Ogden needs to create a rainy day fund or as Dave Ramsey would call it an emergency fund. I know that because of the prudent and wise forsight of Weber County School Superintendant that the school district was able to really make it through the bad economy so far without any major extremities being lost. South Ogden needs this kind of planning and forsight.
South Ogden has a rainy day fund. It is required by law to keep a certain amount in reserves, no more than 10%.
The problem is they have been so in the hole the past few years they have been dipping into it every single year. It is almost like they were counting on using it ever year. They would replenish it but then turn around and spend it. Like paying off a credit card just to go back and max it out.
This year they were projected to be so deep in debt that they would wipe out nearly half of the reserves. That is when the fiscal nightmare caught wind of the council and changes were made.
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