Flint, Michigan's deficit doubles under #EFM control

-Mon Jan 14, 2013 9:58 pm

Tonight's #Flint city council meeting revealed definitively what had been rumored for weeks- #Flint's deficit is approximately $19.3 million.

 According to councilman Kincaid, who has been working with the audit committee, this is more than double the previous deficit.

The audit is expected to be released sometime this week. Kincaid recommended asking auditing firm Plante Moran to a public meeting where the particulars of the audit can be discussed publicly.

Proprietary Funds - The City of Flint’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Total net assets in the Water Fund are $19.6 million, an increase of $1.2 million from the previous year. Unrestricted net assets are still negative at ($8.8 million), but improved from fiscal year 2011 ($12.4 million). Net operating income is also improved from a negative $5.4 million to a positive $2.4 million. The positive change is attributable mostly to increases in rates.

The Water Fund has a bond reserve account of $2.6 million and an equipment reserve account of $3.0 million.

Net assets of the Sewer Fund are $61.7 million, a decrease of $3.8 million from 2011. Net operating income remained negative at ($1.9 million), even though sewer rates were also increased. Additional rate increases averaging 25 percent were implemented as part of the fiscal year 2013 budget in order to improve the financial solvency of the water and sewer systems
Post Sun Jan 20, 2013 5:33 am