Finances improving, but not ideal Lindsay’s deficit falls from $11.3 million to $10.7 million
Lindsay’s City Council received a draft of the city’s Basic Financial Statements in preparation for its Audit report and things are looking better than last year, but are still not ideal. The overall deficit in the city’s budget is roughly $10.7 million compared to last year’s deficit of $11.3 million.
Ahmed Badawi, the city’s CPA Partner from Badawi and Associates, opened his financial report to the Council by breaking down the engagement team that’s handling this year’s Audit report for the City of Lindsay. He explained the report goes through several people on his team including a quality control reviewer. Badawi outline potential areas of primary audit risk which were risk of management override of controls, improper revenue recognitions and pensions and other post-employment benefits (OPEB). He stated these are general risks and are not specific to the City of Lindsay.
Badawi’s unmodified opinion is he agrees with the monetary figures presented in the statements, but has a concern with the deficit in the City’s budget. He said the city is climbing back from its debts, but still has a large deficit.
Badawi showed the city has stayed consistent with its assets and deferred outflows of resources and also in its liabilities and deferred inflows of resources. The City’s net position for its Government-wide Financial Statements however remains in a deficit of more than $10 million. Badawi explained multiple factors could be play
ing into the substantiality of the deficit including unfunded pension liabilities and OPEB. He also said the city has done a good job of keeping out of the restricted city funds, which are funds that have predetermined uses such as fixing streets.
Badawi answered all of the Council’s questions throughout his presentation, and thanked them for their time before he quietly exited the building.
The meeting moved forward to the only scheduled public hearing for the night which concerned Resolution 19-62 addressing the acceptance of a negative declaration and approval of amendments to the City’s General Plan. Interim City Manager Bret Harmon stated the resolution had reached the end of its public comment phase, and no comments were received. When the hearing opened to the public, Eric Sinclair was the only person to step forward to speak in favor of the resolution. No one spoke in opposition. The Council approved Resolution 1962 with a vote of 4-0.
The last item up for Council discussion on Tuesday night was an adjustment to the City Council salaries. Although no changes would be put into effect until the next Council is seated, Council member Yolanda Flores suggested the Council discuss increasing the monthly salaries for the future. Flores suggested maybe setting the Council’s salaries at minimum wage, as each Council representative does more than just attend Tuesday meetings. They also attend events, board meetings and ad-hoc committee meetings, just to name a few. Council member Laura Cortes suggested increasing the monthly salaries by $25, putting the Council’s salaries at $75 and the Mayor’s salary at $100. Lindsay’s city attorney told the Council that no matter what they decide, they will have to hold a public comment period to allow for the public to weigh-in on the matter. Council member Roseana Sanchez and Mayor Pamela Kimball both agreed the salaries shouldn’t increase as they understand the Council position isn’t supposed to be a job. Flores reminded the Council the responsibilities extend outside of the Council Chambers, and the increase wasn’t for them, but for the next Council who comes in. The discussion ultimately died without a consensus as to whether the Council would receive an increase to monthly salaries or not.
When the Council was asked to request future agenda items, Flores asked if a discussion about changes to the City Charter could be scheduled in conjunction with the discussion regarding Municipal Code updates in February.
The next scheduled meeting for the Lindsay City Council is set for January 14, 2020, beginning at 6 p.m. inside the Council Chambers at City Hall located at 251 E. Honolulu Street.