New funds will wash into the city’s depleted “rainy day fund,” thanks to a vote of approval by the Board of Alders.
That vote came Tuesday night at the board’s first meeting of the year.
Alders voted to approve a transfer of funds that will erase the majority of a hefty deficit in the city’s fund balance, also known as the “rainy day fund,” which serves as a kind of savings account for the city.
A diminished fund balance is a warning flag for bond ratings agencies, who have downgraded the city’s bond rating as a result of the deficit.
The fund transfer is possible due to the refinancing of old city debt, along with unexpected “premiums” paid for new debt. Click here to read the full background on the deal.
Alders voted unanimously and without discussion to approve the transfer.
Alders also voted unanimously to approve a transfer of “sequestered” funds into the police overtime budget. Click here to read about that.
Alders voted to approve $15,000 for legal assistance in negotiations with the state’s Public Utilities Regulatory Authority, regarding streetlights and electricity bills. Click here to read more about that.
And alders voted to approve a new teachers contract. Click here to read more about it. Upper Westville Alder Darryl Brackeen, a teacher, abstained in order to avoid the “appearance of a conflict of interest.” Prospect Hill Alder Michael Stratton “passed” and did not vote on the matter.
Using transactional savings from borrowed money is still using borrowed money...which should be used to pay down more debt, not to replenish a rainy day fund and take pressure off of the BOA to balance their books.