Alachua corrects financial course with budget slashes

Some $1.7 million restored

A $1.7 million deficit in the City of Alachua’s restricted funds has been restored, almost entirely according to a recent audit.  Presented at an April commission meeting, auditors said all but $15,771 had been paid back into the restricted cash reserves as of Sept. 30, 2010, the end of the audit period.

That news marks a big turnaround for the City, which learned less than a year ago that it had serious financial deficiencies and was even teetering on a financial state of emergency.  The 2008-2009 audit, presented in June 2010 revealed the city spent $1.7 million of restricted funds on city operations.

The audit, prepared by the accounting firm Purvis Gray and Company, concluded, “Due to the lack of unrestricted fund balance and net assets, the City has used restricted resources resulting in certain violations of contracts or agreements. The continued use of restricted resources could potentially lead to further action taken by creditors or others, and leave the City with insufficient funds to operate.”

With just over three months remaining in the 2009-2010 fiscal year, City Manager Traci Cain made sweeping changes, sitting down with each department director and slashing budgets.  Those cuts amounted to some $1 million in budgeted items and areas that the city squeezed from the books.

In January 2010, the City commission also implemented an electric utility rate restructure, which contributed to increased revenues and in June, it implemented a hiring freeze.  All merit and cost of living adjustment pay increases were also cut from the budget.

Recently presenting the 2009-2010 audit, auditor Ron Whitesidessaid, “For a one year turnout…I consider that a very positive improvement.”

Mayor Gib Coerper said he appreciated the employees, who had gone two years without raises.

“They haven’t tripped me too many times going out of the office,” Coerper joked.

Then Vice-Mayor Gary Hardacre said the citizens of Alachua also deserve appreciation.

“Our citizens had to pay more for their property taxes and for a lot of their services,” said Hardacre.

Commissioner Ben Boukari, Jr. said, “From what I’ve heard, this is a great indication that the City of Alachua is headed in the right direction.  You go from 1.7 million down to 15,000.  I think City Manager Cain and her staff have done a great job.”

Cain said she didn’t realize how close the City was to refunding the restricted cash.

“Seeing that it was $15,000, I just wish we could have done a little more.  I didn’t think we would come that close to getting that [audit] comment removed,” she said.

Whitesides said he expects that the remaining $15,771 has been restored since Sept 30, 2010 snapshot given the vast majority of $1.7 million had been cleared up in the preceding three months.