City’s fund balance well below 60-day threshold

The Columbus Consolidated Government’s fund balance is currently at a low point not seen in recent memory.

The fund balance stands at 54.54 days, well below the threshold of 60 days at which bond rating companies begin to consider lowering a city’s bond rating, according to a report given to Columbus Council Tuesday night.

The city’s fund balance has steadily eroded from its 10-year high of 132 days in 2007 to a low of 55.2 days in fiscal 2014, then for the first time since the Great Recession began, the city added a bit back to the reserves, going up to 56.1 last fiscal year before dropping back down to the current 54.5 days.

At Tuesday night’s meeting, the administration presented a series of ideas that could bring in new revenue. Finance Director Angelica Alexander presented them to councilors.

They included stricter adherence to department budgets and restricting the use of salary savings to personnel expenses. Often, when a department manages to save salary costs by attrition or by leaving some positions vacant for a while, council will allow the department to use those savings for capital investment.

Alexander said the city has seen about $3 million in salary savings as of November, and reminded councilors that represents about seven days of fund reserves.

Alexander also talked about other cities that have had “amnesty periods” in which people can pay fines, liens and such with late fees or penalties waived.

Councilor Skip Henderson said he was intrigued by some of the ideas, particularly one concerning allowing the sale of condemned property without all the penalties associated with unpaid liens.

“Perhaps we could get them back on the tax rolls that way,” he said. “But some of these are substandard lots that aren’t worth the price of the lien.”

Mayor Teresa Tomlinson said the ideas for using salary savings only for salaries and demanding strict adherence to budgets will help, as will the assumed end of the recent litigation against the city, and the prospect of Sheriff-elect Donna Tompkins staying within her budget, something incumbent Sheriff John Darr has not been able to do.

But it’s also going to involve making tough decisions about raising revenue. There isn’t any fat in the budget left to cut, she said.

“I have all the faith in the world that we will find a solution to the problem, but the first thing we have to do is get serious about the discussion,” Tomlinson said. “There’s not going to be a quick and easy fix. There is no pot of discretionary money that’s being wildly and irresponsibly spent. That does not exist. And if it ever existed, it hasn’t existed in many, many years.”

This story was originally published December 7, 2016 at 2:58 PM with the headline "City’s fund balance well below 60-day threshold."