By allowing ads to appear on this site, you support the local businesses who, in turn, support local journalism.
City to begin fiscal year with $6 million
Placeholder Image

The city of McMinnville had a strong financial year. If projected numbers remain unchanged, the city will begin fiscal year 2016-17 with almost $6 million.
The information was presented during a Finance Committee meeting to review the city’s proposed budget for the upcoming fiscal year.
“The actual cash balance looks like it’s going to be $5.9 million,” said Finance Committee chair Everett Brock. “I had (finance director) Shirley Durham go back and look at what we owed for the month of June and what revenues were coming in and it looked like it was going to be almost $6 million, $5.977 million. Again, that’s a guess. I think that number will be about right.”
The projected ending fund balance for fiscal year 2016-17 is estimated at $3.5 million.
Increasing the financial bottom line is the sales tax revenue agreement with Warren County government, which returns 4 percent compounded annually from the county to the city. The city will have close to $900,000 in an account by the end of the upcoming fiscal year from the agreement.
Funds from the agreement are placed into a restricted account. City officials restricted the account and can only use the funds for capital improvement projects.
Alderman Ben Newman asked why the restricted fund is included in the ending balance of $3.5 million. “Do we need to look at our projected ending fund balance for next year minus that amount? We are looking at it and it’s still included in there.”
The funds, said Brock, can be used on capital improvement projects or to make payments on money borrowed for those projects and it should stay in the budget.
Alderman Mike Neal sided with Newman. “It makes the ending fund balance look better than it is. It gives us a false bottom line.”
Brock objected.
“I don’t understand why it wouldn’t be included,” he said. “It’s our money. It’s in an account that can be used for most any big item that we want to use it for. I don’t see why we would pull that out. Obviously, it’s restricted that we can’t pay just expenses and things like that but we’ve got plenty of note payments that we could make out of that fund if we wanted to.”
The meeting was an initial review of the consolidated budget only.