Remember how Mayor Paul Tomlinson and Councillor Louise Wadsworth reduced the 2011 tax rate by 9.5% to offset the 9.5% increase in Proudfoot waterfront property taxes? As you may recall, Tomlinson and Wadsworth had to take money out of town's Reserves and forced a 5% reduction in departmental budgets. Then, when it was discovered that there was a huge surplus from 2010 (thanks to the previous council), this money was rolled into the 2011 Budget as "Working Capital".
This sounds a little complicated but basically it means that Tomlinson and Wadsworth skinned the 2011 Budget to the bone. They are not getting the revenues they expected and the departments can't meet the 5% reduction. That budget that Tomlinson had promised to deliver in 60 days (it actually took him more than 3 months) is a FAIL.
So, they have already sacrificed our town's future by taking from Reserves. Now the surplus the previous council gained last year, which should go into the Reserves, is being used up as so-called 'Working Capital'. Think of it like this:
In 2010 you worked extra hard and saved a lot of money (for home repairs, a new furnace, your kid's education, etc.). But then in 2011, you decide to put your feet up and not to work at all and just use your 2010 savings to pay the bills. Hey, the bills are getting paid, so what's the big deal, right? And if your spouse asks you if your spending your kid's college fund, you say, "No, honey! It's 'Working Capital'".
Welcome to Kearney.
We are still 3 months away from the end of the year and the town's out of money, so stay tuned. It will be interesting to see how Tomlinson wiggles out of this one. Or who he blames for this monumental screw-up.
Are You Surprised?
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