Monday, September 03, 2018

COSA Budget Cites $7.8 million Water Fund Balance as of July 31


City Council examined the Water Fund in a special budget meeting on August 14.   Finance Director Tina Diershke mentioned the need to grow the water fund balance to a certain number of days revenue but never shared the Water Enterprise Fund Balance, over $7.8 million as of the end of July.

Council could remember Finance Director Dierschke's representation of Water Fund Balance as of 9-30-18 as a mere $3.5 million.  The 2017-18 budget shows a beginning fund balance of $6.1 million.  That's a $2.5 million difference.


Mayor Gunter tried to get a picture of the current water fund balance with direct questions on the number of days and amount.  Dierschke would only give the adjusted budget fund balance of 62 days.  She did not give an actual fund balance figure in days or dollars.

City staff can compare budget to budget but it has accounting documents that show actual figures.    The Water Enterprise Fund is holding enough cash to cover 109 days of water enterprise expenditures.  Council should be astute enough to recognize staff's sleight of hand.

City Council eliminated the twice a year rebate discussion requirement in April of this year.  That may well have been a mistake. 

Update 9-25-18:  As of 8-31-18 the Water Enterprise Fund balance stood at $9,369,008.  That's nearly double the last 75 day fund balance goal shared with City Council in November 2017.

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