Monday, November 9, 2009

Trust Fund Withdrawal ... AGAIN?

At the Nov. 9 meeting, council approved the second reading and adoption of an ordinance for $1.5 million withdrawal from the trust fund. The money will be used to balance the city's budget.

Council also decided it will have a joint public meeting at 7 p.m. Nov. 16 with the city's Redevelopment Authority. The authority is requesting council withdrawal $7 million to pay for the authority's debt.

State officials and a report, known as Fairmont Capital Advisors Early Intervention Program, have warned the city against overreliance on the trust fund. The report states that a minimum of $20 million should be in the fund at all times.

At the end of October, the fund had $21.9 million. The $1.5 million withdrawal and a potential $7 million could bring the fund down to approximately $13.4 million.

Do you think it's prudent for council to continue taking money from the fund?