Who’s Going to Bail Out the City of Eagle?

The City of Eagle hopes to avoid bankruptcy by borrowing $500,000 to cover its current operating expenses. According to their FY08 financial report published in the Valley Times last week, the City expected to have $7,844,117 in revenue for the general fund. The actual revenue was only $5,048,487. So did the City adjust its spending to balance the budget? Afraid not. The City reports spending $6,882,455, or $1,833,968 more than they had in revenues. How did they do this? Instead of tightening the belt, the City dipped into the taxpayers’ savings accounts. The City started FY08 with $1,848,872 in carry over savings and reserves. It looks like this has now evaporated with last year’s overspending.

Given this history of irresponsible spending, should the Mayor really be trusted with our credit card? The City’s FY09 general fund spending budget is over $7 million. If revenues last year were only $5 million, and this year may be worse than last, where is the $2 million difference going to come from? The Mayor intends to use the city credit card and borrow $500,000 to start covering the shortfall.

Like GM, Eagle city government suffers from too many unproductive employees being paid salaries that are way above market. Why can’t the City just simply put itself on a spending diet like most of Eagle’s families are doing? The City leases an extravagant City Hall building for an exorbitant rate. Councilman Al Shoushtarian tried to warn the Mayor of this impending fiscal problem, but was dismissed with arrogance and insults.

Mayor Bandy has refused to make responsible spending reductions. To avoid insolvency, the City must cut the spending budget by at least 35 percent immediately. Governor Otter and many other public leaders have recognized the economic realities and have made the necessary budget reductions.

Instead of making necessary reductions, the Mayor wants to put the taxpayers into more bondage with new debt. Perhaps he is expecting a trickle-down bailout from the U.S. Treasury or that the Federal Reserve will authorize him to start minting new Eagle dollars made of lead and empty promises. In the mean time, we need to take back our credit card. No more midnight spending and giving the citizens the bill the morning after. And most importantly, no new debt without a vote of the taxpayers.