part of a conversation i had with a former finance director.
almost 2 1/2 years later. pathetic.
Wagner
Date: Tue, 8 May 2007 08:51:00 -0700
Of
course, we could use the ABAG money...Let me start again with the
definition of a "structural" deficit....keeping in mind that wages and
benefits for the service provided in the City account for nearly 80% of
total spending. A structural deficit is defined as...in any given year
the expenditures exceed the revenue. So, yes, of course, we could use
the ABAG money to close the deficit this new fiscal year ...but, it is
one time money...(reimbursed from previous years expenditures), it
could help us "balance" the budget this year by using this one time
money to cover our operating expenses...but we would be back in the
same place next year with a structural deficit because we would not
have solved the "structural" problem. The only way to actually solve
the structural problem is to cut expenditures and/or increase
revenues. We are making attempts to do both right now. Unfortunately,
because the cost of staffing to provide services is the majority of our
expenditures....the cost cutting
has to involve reducing staffing and thus reducing the services that
are provided by that staffing. We are also looking at revenue
enhancements: For instance, we are looking at a property tax audit of
the County to make sure that Pacifica is receiving the property tax revenue
correctly; we are looking at developer fees, so when we move forward
with development, there will be revenue to improve infrastructure; we
are looking at sewer connection fees, so that, again, as development
proceeds, we can build a capital improvement reserve for all of the
pump stations, sewer lines, etc. using sewer connection fees.
So, basically, we are
taking the steps necessary right now to balance a structural deficit by
cutting costs and looking for revenue. We have already made a good
start...but, again, that is mostly from not filling positions as people
leave or retire...which, reduces our ability to provide services for
the community. I can assure you, that in my experience, this is one of
the most thinly staffed municipalities. We are already down to the
bone.
3 comments:
Thanks for sharing that Jim. I have a few gems from our former finance director like that. The point to emphasize is that this "thinly staffed municipality" was happening well before the global financial recession. There are council defenders who are blaming our current financial problems solely on the global market conditions. This is patently untrue.
"We have already made a good start...but, again, that is mostly from not filling positions as people leave or retire...which, reduces our ability to provide services for the community. I can assure you, that in my experience, this is one of the most thinly staffed municipalities. We are already down to the bone." --Juanita de Portola (Pacifica's first Finance Director; circa 1769; in her State of the City report to husband and Pacifica's first mayor, Gaspar)
"I can assure you, that in my experience, this is one of the most thinly staffed municipalities."
And then there was no finance director shortly thereafter.
Post a Comment