RESIDENT UNFRIENDLY: City's Budgetary Priorities Atypical

“We need to start paying our reserves,” McCloud said.

(Source: “$11.75 million budget gives $35K for more library hours, Mary Brownfield, The Carmel Pine Cone, July 7, 2006)


CITY OF CARMEL-BY-THE-SEA
California

Annual Financial Report
June 30, 2005

BALANCE SHEET
Government Funds
June 30, 2005

Fund Balances
623,709 Reserved for debt service

Unreserved
$37,662 Designated for street and traffic safety
$740,451 Designated for liability insurance
$647,527 Designated for health insurance
$1,370,334 Designated for capital improvements
$249,579 Designated for equipment replacement
$1,432,394 Designated for benefits and wc insurance
$657,000 Designated for reserves
$549,690 Designated for economic uncertainty
$165,011 Designated for emergency response
$140,000 Designated for general services and operations
$468,857 Designated for customer deposits
$1,240,439 Undesignated

8,322,653 Total Fund Balances


(Source: CITY OF CARMEL-BY-THE-SEA California, Annual Financial Report, June 30, 2005, FINANCIAL STATEMENTS, Fund Financial Statements, Balance Sheet – Governmental Funds, Pg. 4)


COMMENT & QUESTION:

• For Fiscal Year 2006/07, the City of Carmel-by-the-Sea has an $11.75 million budget, an estimated $10-$25 million deferred maintenance and over $8.3 million in reserves.

• Yet Mayor McCloud publicly states, “we need to start paying our reserves.” What is her rationale for such a statement, given the City’s deteriorated and decayed infrastructure and the magnitude of the reserves vis a vis the annual budget?