City finances updated

2008 appropriations passed; treasurer cautions use

[July 22, 2008]  Monday evening, city of Lincoln aldermen passed appropriations for the fiscal year May 1, 2008, to April 30, 2009. Appropriations serve as backup funds that could possibly be expended in an emergency, such as unanticipated, high-cost equipment failure, a catastrophe that would draw on city resources in overtime pay, major infrastructure needing repair and other costs.

This year's budget, which was approved on April 29, was for $10,520,427. It was $340,734 slimmer than the previous year.

The 2008 appropriations amounted to $15,121,940 after transfers, city clerk Melanie Riggs said.

This year's appropriations include $25,000 for security improvements at City Hall and $5,000 for a citywide cleanup.

As standard practice, some line items are padded so as to allow departments to shift their spending priorities to cover for unanticipated expenses and keep within their budgets.

Other specific line items in each department have funds added that could be used for an unforeseen catastrophic event that would draw heavily on city resources.

City treasurer Les Plotner took a couple of minutes to caution city officials on the use of the appropriations. "Appropriations really are a safety net," he said. "They're something that sits out there almost in a fictitious kind of measure that would allow you to spend that kind of money only if something drastic happens."

First he said, "In essence it's also a safety net for careless management of the budget by those who are responsible to carry out the budget specs."

Next he said, "It is also a safety net for unforeseen emergencies, which can happen and will happen. All we do is hope that it's not going to happen in large quantities. That could put us in trouble.

"Finally, appropriations really establishes a top limit for spending. You cannot spend over an appropriations."

"It would also be drastic if you were to use the appropriations as a guideline for that spending, because in the general fund alone the appropriation amount is about $1,400,000 over and above the budgeted amount. The total budget would amount to $3,395,000 more if you were to spend the appropriations amount instead of the budget. I would urge everybody to live within our budget and just forget about appropriations, just don't go there, unless an emergency happens."

He urged committee members to monitor spending closely: "When you see expenditures start to reach their budget limits, you need to blow the whistle a little bit and indicate to those responsible that you need to hold the line because you don't want to be pushing too much over those budget amounts. You can shift a little money within the budget, but you can't shift anything within the appropriations."

He emphasized, "The budget really is the working plan for the year. It was established after some hearings. Finance committee and department heads said this is what we have to have. So, if that's what we have to have, let's pay attention to it."

Plotner then followed with a report based on June figures. He said that there was $4,714,039 in the bank balance. The $777,948 in the general fund was up a bit as compared to last year, when there was $640,010.

Interest rates have been on the low side for a while. He was following interest rates of various savings programs in local banks where police and firemen's pension funds and other funds are invested while kept in holding.

Mayor Beth Davis-Kavelman thanked Plotner for another thorough and good report.

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