The expanded City of Emeryville’s Finance Committee met on 21 November. Its meetings remain one of the best places for a citizen to find out how their city is doing in turbulent economic times. The focus of the November meeting was a draft of the city’s “Audited Financial Statements for the Year Ending June 30, 2011 and Transfer of Fund Balances.” I set myself the task of exploring the city’s bonded indebtedness and the annual cost of financing it. Here’s what I found out from the detailed figures the draft reports provided and from city staffers comments.
The principle we owe as long-term debt is $165,474,763. When principle and interest are combined, our total indebtedness is $250,102,582. Financing that debt in the fiscal year ending 30 June 2011 cost $8,601,997, or about 12% of the city’s annual expenses. These are big numbers, and I asked city staffers if they found them daunting. Not really, they responded. City Manager Patrick O’Keefe said anticipated revenues and other city assets make the debt manageable. A CPA representing LSL, the firm auditing the city’s financial reporting, did not demur. And the city’s ability to borrow at reasonable rates—our credit rating—remains favorable.
Am I reassured? I respect the professional competence of our staffers and the auditors with whom they work. Their reporting on our debt and assets is, I think, accurate and reliable. That’s reassuring. But no one can predict the economic future, and the turmoil afflicting global economies is not at all reassuring. So far so good, but let’s stay alert and keep our fingers crossed. The next meeting of the Finance Committee is on February 27 at 5:30 p.m. The place: City Hall. Drop in and see how we’re doing.
by Bill Reuter, Citizen Member, Emeryville Finance Committee
