You don’t have to be a magician to make a large sum of money disappear, especially if you’re in charge of managing taxpayer money. All you have to do is put it in the general fund. Poof!
Columbus CFO Jim Brigham estimated the city will have a general fund balance in the $11 million to $13 million range by the end of the fiscal year on Sept. 30.
Brigham suggested moving $4 million of those funds into the city’s capital improvement fund, which already has a balance of $1 million. You could make a pretty good argument for moving more of those funds into the capital improvement fund, but we won’t split hairs.
The important thing is that if the council approves Brigham’s proposal the city will have the beginnings of a nice little nest egg to use for its brick and mortar needs somewhere down the road. We hope the council will devote money to the capital improvement fund as part of its annual budget process, allowing the fund to grow with earned interests until a need arises.
When Lowndes County received state permission to invest the $30 million in its hospital fund, the county was able to grow the balance of that fund while using millions of dollars in gains to build facilities throughout the county. Supervisors committed to devoting all withdrawals from the fund to capital improvements. The wisdom of that decision is evident today.
We believe the city has the same opportunity, albeit on a smaller scale.
For years, the city, lacking a dedicated source of excess revenue, was trapped into a pattern of borrowing money to pave its streets. In most cases, the city was still paying on those loans long after the life of those paving jobs had expired.
This is a chance to avoid that misery as the city addresses its capital improvements needs.
When funds are dedicated for a well-defined use, the temptation to take a little bit here and a little bit there is avoided. Those funds grow and are dedicated to the purpose they were intended for.
Of course, putting money into a fund is one thing. Keeping it there and using it for its intended purpose is another.
That’s especially important for a capital improvement fund because it funds tangible things, facilities taxpayers can see and use.
We encourage the city to follow through with this proposed plan, dedicating at least $4 million of its surplus to this fund and then make a real effort to grow it. It used to be a joke when it was said, “a million dollars here, a million dollars there and pretty soon you’re talking real money.”
Having the funds in a separate fund dedicated to capital projects will help remove the temptation to make the money magically disappear.
We know a million dollars doesn’t go too far in capital improvement projects these days, but setting up a fund of $5 million or more and adding to it consistently?
Well, before you know it, we’re talking real money.
You can help your community
Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 32 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.
You can help your community
Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 32 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.
