I recently received a report prepared by the city finance director that answers a lot of the fiscal questions concerning the state of Oak Harbor’s finances and the need for a declaration of a fiscal emergency.
With the City Council declaring a “fiscal emergency” one of the first actions besides reducing the amount the Mayor and his staff can spend without City Council authorization was the creation by the Council of a special “stabilization account” that established a minimum reserve of $3,000,000.00 or 25% of the the general budget whichever is greater.
Reading the report by the city finance director it appears that Oak Harbor is already above the 25% limit of the new stabilization account, currently the projected reserve balance at the end of the year will be 25.8871% of the general fund budget and the ending balance will be $3,259,056 which shows both figures above the limits set by the Council for the stabilization account. The question does come up with our city finances in such good condition what was the purpose for the declaration of a fiscal emergency? Politics or was there a true need?
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