City Manager Contradicts Signed Federal Grant Application Regarding City Finances

City Manager Shauna Clark

In September 2010, the City submitted signed, attested Grant Applications to the Federal Government.

Those applications included statements as to the status of city finances.

One statement said:

"The City is laboring under increasing revenue shortfalls, and having to draw from reserves just to provide basic city services."

At the March 10, 2011 City Council meeting, during the Mid-year Budget Review discussion, City Manager Shauna Clark said (at 4:02:20):

"My definition of a structural deficit occurs when you have to use reserves for to pay operating expenses. So far you've only used reserves to pay for one shot expenses. In other words, you've got enough cash flow coming in at the beginning of the year to pay for your city's expenses throughout that year."

See Story on Grant Applications and the Grant Applications themselves