Lost in the frenzy of last week’s news blitz was discussion about Alameda’s budget. Last week the City Council had their first look of the budget cuts that would be necessary to keep the City afloat. It turns out that the budget was even more grim than anticipated because someone forgot to account for certain expenditures for the 2011-12 budget year.
Controller Fred Marsh explains:
For those who choose not to watch, here’s the nutshell, the accounting tricks used previously to pad previous year budgets had been exhausted for 2011-12 and the budget needed to begin repaying bonds from the general fund and that was not included in the 2011-12 budget (that was an addition $827K unaccounted for). For two special funds, Library and Fleet Maintenance, not enough was budgeted to these two operations and because they cannot carry a negative fund balance (aka reserve) City Staff needed to reallocate the difference so that they would not be in the negative, both these total another $800K+.