City Projected To Have $99,910 General Fund Defecit At End Of Fiscal Year

A consultant from Des Moines-based Public Financial Management (PFM), Inc., said Monday her analysis projects the city of Glenwood to have a general fund deficit of $99,910 on June 30 - the end of the 2014-2015 fiscal year.

Susanne Gerlach shared her projections during a Glenwood City Council Budget and Finance Committee meeting at City Hall while discussing funding for the proposed Charles E. Lakin Aquatic Center. The city finished the 2013-2014 fiscal year with a $297,000 general fund deficit that wasn’t acknowledged until the release of an audit report in January.

The 2013-14 deficit and Gerlach’s projections for the 2014-2015 fiscal year are noted in the city’s “official statement”  that will be marketed to potential vendors for the sale of General Obligation Local Option Sales Tax bonds that will fund the aquatic center and remaining debt on the Mills County YMCA building and General Obligation Corporate Purpose bonds to pay for repairs to the Glenwood Public Library roof and the Vine Street - Railroad Avenue reconstruction projects.

A section of the city’s official statement reads, “As of April 30, 2015, the Office of the Auditor of the State of Iowa estimates the general fund balance to be $179,885 after transfers and other adjustments. The Issuer anticipates ending FY2014-15 with a reduced general fund deficit balance of $99,910. The Issuer is committed to eliminating the general fund deficit and balancing the general fund budget in FY 2015-16. Commencing with fiscal year 2015-16, the Issuer will conduct quarterly finance committee meetings focused on generating cost-savings solutions and if necessary, budget reductions. The Issuer has engaged an outside consultant to assist with financial planning, forecasting and reviewing the Issuer’s budgeting process.”