How does the City of San Angelo end FY 2012 with a $1.57 million health fund balance and begin FY 2013 with only $915,000 in the same account? What happened to $655,000 at the stroke of midnight?
FY 2012 saw city leaders maintaining budget fiction to the bitter end.
Despite Council's approval of the Community exclusive provider arrangement which saved nearly $500,000, the budget was never updated for the public in the 2011-2012 FY. The City stuck to its $7.9 health insurance million budget, only showing a $6.4 million when the final 2012-2013 budget was released. Oddly, the Health Insurance Fund Balance is based on the prior 2012-2013 budget of roughly $8 million. The City Budget document shows $6.4 million for health insurance on page 122 and $8 million on page 91. This is transparently bad financial management because it doesn't paint a consistent, much less clear picture.Did city leaders siphon off $655,000 in health fund balance for other needs? They diverted $250,000 to an investment account the year before. I've yet to see that transferred back.
At the end of 2012 the City seemed flush with cash, the $1.57 million plus the $343,000 in unused ERRP funding. This $1.9 million somehow got whittled down to a projected $572,000 for the fiscal year about to end.
It's incongruous that the City had a bad year experience wise, given health insurance projections are $500,000 lower for the coming year. The numbers don't add up.
Update 8-19-13: The City changed its budget projections. restoring the $655,000 in missing fund balance in its latest budget update.. It did keep the nonsensical $500,000 projected savings though.