Letter to Editor:

THE CITY OF ALICE’S FINANCIAL SITUATION IS IN A “SWIRL” 

The good thing is that most of Alice’s “Financial Problems” are in the General Fund (Ending with ONLY 1.5 months Operating Reserve). With the MUC Fund (projected <$311.712> Ending Balance) and GOLF COURSE Fund (projected <$157,798> Ending Balance) BOTH BEING A “MINOR PROBLEM”.

Thank goodness, the DEBT SERVICE FUND (projected $1,282,637 Ending Balance), SOLID WASTE FUND (projected $2,381,253 Ending Balance), and UTILITY FUNDS (projected $4,639,664 Ending Balance), APPEAR TO BE REASONABLY OK!

On October 1, 2016, Alice’s General Fund (“GF”) a had a healthy $9,869,742 Beginning Fund Balance (which represented 7.5 months Operating Reserve) and 2 short years later the City’s Proposed 2018 GF Budget is Projected to have ONLY a $1,554,776 GF Ending Fund Balance or ONLY 1.5 months Operating Reserve).

The Minimum Recommended Projected General Fund Balance should be NO LESS than $3,032,685 or 3 months Operating Reserve. Calculated as follows: $1,010,895 (GF average monthly Expenses) X 3 Months= $3,032,685.

Therefore, in order to have the Recommended $3,032,685 or 3 months Operating Reserve you need to CUT an additional $1,477,909 from GF EXPENSES. Calculated as follows: $3,032,685 (3 months Recommended Operating Reserve) less $1,554,776 (Projected General Fund Ending Balance with only 1.5 months Operating Reserve) = $1,477,909 (Shortage in Ending GF Balance in order to have the Recommended $3,032,685 or 3 months Operating Reserve).

Your Current Proposed 2018 GF Budget is projecting REVENUE of $10,990,133 (after robbing/transferring almost $2,000,000 from the Utility and Solid Waste Funds to the GF) less EXPENDITURES of $12,130,756= <$1,140,623> (GF Spending in Excess of Income). 

BOTTOM LINE: 

In order to wind up with an Ending GF Balance of $3,032,685 (3 months Recommended Operating Reserve) and a BALANCED GF BUDGET. All you have to do is CUT $2,618,532 in EXPENSES. Calculated as follows: <$1,477,909>. (Shortage in Ending GF Balance in order to have 3 months Recommended Operating Reserve) PLUS <$1,140,623> (GF Spending in Excess of Income) =<$2,618,532> (required Cut in Expenses).

Presented to Alice City Council at Budget Work Shop (8-12-17)

by Newell W. Atkinson III (a Very Concerned Taxpayer) 

Alice, Texas