January 20, 1999
Fostoria suffers slight cash-flow trouble
By Malinda Ruble
Staff Writer
FOSTORIA -- The city's finances are experiencing a slight cash flow problem -- to the tune of about $90,000.
City Auditor John Schuld told the finance committee and city council Tuesday $90,000 needed to be transferred from the city's newly created contingency fund to the general fund.
''The expenses in the general fund was more than the revenue. The last quarter revenues were terrible. We were $200,000 under the estimate for income tax. We're hoping it will come in in April, but we're going to have to be strict with the budget until then,'' he said.
Schuld said the city started a contingency fund in 1998 with $100,000 and started a retirement fund of $100,000. Those transfers, plus the low revenue, resulted in an ending balance for 1998 of $13,557. Schuld said the actual balance is about $400 due to an encumbrance.
However, $48,000 remains in the contingency fund and another $100,000 in the retirement fund.
''That's what the contingency fund is there for and it will continue to grow,'' he said.
Council approved the transfer of $90,000 and the adjusted appropriations for 1998 and the adjusted 1999 budget. The 1999 budget was lowered to restrict spending until the revenue for the year is determined.
However, after examining the finances, Councilman John Davoli said the city will need to watch spending in the future.
''We're under the best economic times. I think it's sad to end the year with that little of money in the general fund. I don't think it's right. I don't think it's smart. It's scary. I know there are roundabout reasons for it, but I think we really have to look at not buying new. We should be over $1 million and here we are at $13,000,'' Davoli said.
Schuld agreed spending should be limited.
''The general fund does concern me. The revenues were low. It wasn't the transfers, it's just revenue didn't hit what we expected. The fund should be healthier. We are definitely going to research and be on top of this. We're going to have to tighten our shoe strings this year until April,'' Schuld said.