At the October 12, 2009 meeting of the Mayor and Council, the Finance Department released its financial report for the fourth quarter (April-June) of 2009. The good news is that the staff was able to keep reserves (savings) above the 15% minimum with a $3 million cushion and the deficit has been reduced to -$1.8 million (was expected to be -$5.2 million). As a result, I’ve updated the chart to provide the latest information.
The bad news is we still have a deficit (now the third year in a row) and even worse, several members of the City Council still don’t recognize we’ve had deficits. I’m not sure how they’re confused, but it could be that they adopt a balanced budget at the beginning of the year and forget that as the months go by, actual revenues and expenses usually don’t follow the budget and it can be very different at the end of the year. It’s like making a New Year’s resolution that you’ll lose 15 pounds by summer, but when you weigh yourself on June 1, you’ve discovered you didn’t make it.