City of Flint Financial Position Improves
The City of Flint announced today their financial position has significantly improved. The deficit is down and cash flow is up. The City of Flint Finance Department has completed the Fiscal Year 2011 (FY11) end-of-year close and the combined operating deficit is now calculated at $7.34 million (unaudited). This is down from the projection of $14.62 million at the time the new budget was adopted in June 2011.
Mayor Dayne Walling stated "the necessary reforms that have been implemented took time to demonstrate their benefit, but now the savings are clear."
Another test of the City of Flint's financial position in the monthly pooled cash beginning balance. Prior to the receipt of the fiscal stabilization bond and the implementation of reforms, cash flow projections showed negative balances in April 2011. Current projections place the cash flow balance average above $10 million through September 2012.
Finance Director Michael Townsend noted "spending has been reduced when recent months are compared with 2010 and other years. Additional revenues from income taxes and state-shared revenues are also positive. This adds up to a stronger cash flow for the City of Flint."
The City of Flint continues to face financial challenges but the stress has been substantially relieved. Additional reforms are expected to generate additional savings such as: restructuring golf, janitorial and sanitation services; contract concessions from public safety unions; and departmental reforms for efficiency.