Thanks to all of you who’ve written and wondered what’s been up. After two months of trying to recover from the City Elections, we’ve finally found our Pulse again!!

Time to pull out the old calculator again… it’s budget season in the City of Columbia!!

And things have apparently gone from bad to worse when it comes to City finances.

Following yesterday’s Executive Session, auditors for the city and the SC Municipal Association broke the news to City Council that… well… the City’s going broke!

Two years of financial mismanagement, passing budgets without closing the books, and poor long-term planning have finally taken their toll. It appears that the surpluses touted by Mayor Bob earlier in the year and the “rainy day” reserves are drying up.

Sources close to the process have told us that “unanticipated [that means unplanned for] health care and legal costs have eaten up the city’s reserves.”

Here’s how the numbers break down…

In 2006-2007, the health care fund (which pays for employee health care) was $11 million over budget, while legal expenses were an additional $5 million over budget.

In 2007-2008, from what the auditors have begun to glean from the still-yet-to-be-closed city books, the City was another $11 million over budget for health care costs, and they’re anticipating around another $5 million shortfall in legal. This doesn’t count $6-8 million in contingent liabilities that aren’t budgeted for yet.

We’ve pulled out our calculator… just to see where that leaves our friends at City Hall.

Estimated Surplus $30 million
Rainy Day Reserve 10 million

Cash Assets $40 million

’06-’07 Healthcare -$11 million
’06-’07 Legal -5 million
’07-’08 Healthcare -11 million
’07-’07 Legal -5 million
Contingent Liabilities -8 million

Total Liabilities $40 million

Looks like the bank is empty and there’s no more money left in the cookie jar.

Kirkman Finlay called the numbers “quicksand”. Ann Sinclair rebuffed him and called them “soft numbers.”

No matter what you call it, it’s trouble.

Ann, you’re on your way out the door. This is your last hurrah!! Light a fire under someone’s seat and call this what it is. Speak up at the next Council meeting and say, “Charlie, what are you going to do?” Get answers from the City Manager and let’s not leave this hanging.

Unlike our state’s General Assembly which can pass a continuing resolution and operate government services until a budget agreement can be reached, Columbia City Council must pass a budget by June 30th. In 25 days, is the City going to have a clue how deep the hole of city finances actually is?

It took nearly two years to close the ’06-’07 books. t’s been almost a year and the ’07-’08 books aren’t closed yet.

How in the world is this City going to deal with this burgeoning financial crisis?

Stay tuned!!