Josh Kleinbaum
As the state government struggles with its long-term finances and
tries to balance its budget on a massive bond issue, Glendale's
long-term financial situation is faring much better.
That's the message Director of Administrative Services Bob Franz
will deliver at 9:30 a.m. today at a special City Council budget
study session at City Hall, 613 E. Broadway, focusing on reserve fund
balances.
"We've increased our fund balances over the last few years, so
there's no big issues," Franz said. "We're in good shape."
Glendale's reserves are in such good shape because the city always
balances its budget, Franz said. Combined with a hiring freeze, the
balances in the city's reserve funds have grown.
The exception is the general fund, which is expected to finish the
fiscal year with a balance of about $50 million, $10 million less
than last year. That is because the city used $4 million of that fund
to purchase 78 acres of undeveloped land in Scholl Canyon Park. The
city also used $6 million to balance internal service funds.
Despite the high balances, do not expect the city to dip into
reserves to balance the budget and avoid cuts. With uncertainly in
state funds and increasing costs for the city's retirement funds,
city officials are predicting deficits for much of the next decade.
"There's a limited amount of reserve funds," Councilman Rafi
Manoukian said. "If we continue dipping into it every year, sooner or
later there will be no reserve funds. Reserve funds are for
emergencies. If you need it, you use it, then you move on."
Franz said that the state's finances are in a mess because the
state government dipped into reserves to balance the budget. Now,
Gov. Arnold Schwarzenegger is trying to pass a $15-billion bond issue
to balance the budget because the state does not have the funds.
"We don't want to join their fiasco," Franz said.
