The expanded City of Emeryville\u2019s Finance Committee met on 21 November.\u00a0 Its meetings remain one of the best places for a citizen to find out how their city is doing in turbulent economic times.\u00a0 The focus of the November meeting was a draft of the city\u2019s \u201cAudited Financial Statements for the Year Ending June 30, 2011 and Transfer of Fund Balances.\u201d\u00a0 I set myself the task of exploring the city\u2019s bonded indebtedness and the annual cost of financing it.\u00a0 Here\u2019s what I found out from the detailed figures the draft reports provided and from city staffers comments.<\/p>\n
The principle we owe as long-term debt is $165,474,763.\u00a0 When principle and interest are combined, our total indebtedness is $250,102,582.\u00a0 Financing that debt in the fiscal year ending 30 June 2011 cost $8,601,997, or about 12% of the city\u2019s annual expenses. These are big numbers, and I asked city staffers if they found them daunting.\u00a0 Not really, they responded.\u00a0 City Manager Patrick O\u2019Keefe said anticipated revenues and other city assets make the debt manageable.\u00a0 A CPA representing LSL, the firm auditing the city\u2019s financial reporting, did not demur.\u00a0 And the city\u2019s ability to borrow at reasonable rates\u2014our credit rating\u2014remains favorable.<\/p>\n
Am I reassured?\u00a0 I respect the professional competence of our staffers and the auditors with whom they work.\u00a0 Their reporting on our debt and assets is, I think, accurate and reliable. That\u2019s reassuring.\u00a0 But no one can predict the economic future, and the turmoil afflicting global economies is not at all reassuring.\u00a0 So far so good, but let\u2019s stay alert and keep our fingers crossed.\u00a0 The next meeting of the Finance Committee is on February 27 at 5:30 p.m.\u00a0 The place: City Hall.\u00a0 Drop in and see how we\u2019re doing.<\/p>\n
by Bill Reuter, Citizen Member, Emeryville Finance Committee<\/p>\n
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