Correspondence - #1 - Laserfiche WebLink

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Our city needs to make progress in reducing its deficit balance of our unrestricted net position. The vast majority of our city's deficit appears to be generated by our pension obligations and retiree benefits (OPEB plan). We have committed to pay benefits, including pension,to our city workers that we have not funded. We do not have the cash on hand to pay these obligations currently. We have committed to this yet we will be using future revenue to pay for these obligations. We need to start making progress, in a meaningful and large way, in reducing our deficit net position otherwise we are committing to spending future revenue and further burdening our residents now and into the future. I suggest that our council do the following: 1. Direct staff to provide further detail on our deficit balance in the unrestricted net position for governmental activities. Essentially, educate our residents and other leaders about the current financial position of the city. Our focus is usually on our Revenue and Spending,which is appropriate on a year by year basis, but the future is just as important and to be truly thriving city,the long term needs to be addressed also. 2. Direct staff to come up with a plan to reduce the deficit balance into a neutral position or even a surplus over time. Nothing will happen overnight but if nothing is done presently,we will be in even more of surprise in the future. A start is needed and that start needs to be done now. 3. Direct staff to come up with a savings plan built into the current budget to implement the plan in#2 above. Yes, this means that we will need to increase revenue and control spending. We need to fund the liabilities that we have accrued yet have not funded. 4. If council feels that using continually having a deficit net position is acceptable, then the public should know...flat out tell us. Are we OK in being one of the lowest financially stable cities? Again, let's be transparent about it if we are...if we are not,then let's come up with a plan to improve...year by year. The above information can be seen in the city's June 30, 2022 Financial Statements on page 27 (See picture below...this is the summary in millions) and the second picture is the detailed Statement of Net Position on page 41. Many will focus on the Total Net Position but as discussed above,this included restricted net position and the net investment in capital assets. The more appropriate measure is the unrestricted net position. 4