City Council Faces Budget Crisis Amid Missing Millions

During a recent government meeting, significant concerns were raised regarding the city’s budget management and the handling of disaster funds. A council member highlighted an ongoing issue with a reported $1.1 million deficit, which was initially believed to be covered by disaster funds. However, it was revealed that this amount has not been located, leading to suspicions that the funds may have actually been drawn from the general fund.

The discussion centered around a three-year fund balance sheet, which indicated that estimated revenues for the fiscal year 2023-2024 would be approximately $15.9 million, while expenditures were projected at $17.4 million, resulting in a deficit of about $1.5 million. The council member emphasized that no authorization was given for the withdrawal of funds from reserves to balance the budget, suggesting a lack of oversight in the administration's financial practices.

Further scrutiny of past fiscal years revealed that the general fund had a beginning balance of $6.5 million in fiscal year 2022, which decreased to $6.3 million by the end of the year, indicating an overspend of $138,000. This pattern of overspending appears to have continued into the following fiscal year, with the general fund balance projected to drop to $4.8 million, aligning closely with the previously mentioned $1.5 million deficit.

The council member called for a thorough investigation into the administration's financial decisions, particularly regarding the alleged use of disaster funds and the overall management of the general fund. The meeting concluded with a commitment to clarify the discrepancies in the financial reports and to ensure that the city’s reserves are adequately rebuilt.