Council Talked Interest on Fund Balance, Not Current Balances

On August 13, 2019 City Council held a budget workshop on the major funds.  Council tackled water, sewer and solid waste funds at the beginning of the meeting.  They discussed interest income as coming from fund balance but not the amount the city currently held in those funds.  Water, sewer and solid waste fund balances are up $20 million since September 2016.

Finance Director Tina Diershke mentioned the water rate plan intended to fund new projects.  City residents paid dearly since this plan was enacted in 2016.

Water fund rose over $11 million through June 30, 2019, smashing the 75 day cash on hand target.

Sewer revenue rose and its fund balance grew.  The City refers to sewer as water reclamation.

Water reclamation fund balance rose nearly $6 million though the end of June, reaching $13.4 million.

Trash (Solid Waste) revenues and fund balance grew over the period.

Fund balance more than doubled for Solid Waste, increasing nearly $3 million.  With almost $5 million in the fund the city has 2.5 years cash on hand.  That's way more than 75 days.

San Angelo's City Council and citizens deserve a clear presentation on major fund balances as they are substantial.  Council is responsible for the strategic direction of the city and the annual operating and capital budget.  Going through a budget process without addressing these significant funds shortchanges elected officials and the interested public.  City staff have a history of doing just that.