University City Officials Disagree Over the City's Financial Picture

There is some disagreement among city officials over University City's financial picture. 

At a budget study session Monday night, Councilman Byron Price  objected to City Manager Lehman Walker's comments about the City being in "dire financial straits." " Price said that when constituents question whether the City's budget is in catastrophic shape, "my answer to them is no." 

"If I didn't have cookies in the cookie jar that would be true. But you've got 30 percent in the cookie jar that you can go get," he said.

However, Walker adamantly disagreed. "When your expenditures exceed your revenues and your only option is to use your reserves, or to increase the cost of services to our residents, I consider you to be in dire financial straits," he said.

University City estimates an operating budget gap of $900,000 next fiscal year, increasing to $2,000,000 the following fiscal year. According to a recent analysis of certain City departments, University City has several million dollars in its General Fund Reserves, but the City manager said that money can only help in the short term.  He said the City ultimately needs to balance its budget, not eat away at its reserves. 

Walker said part of his job is to look at the long term health of the City, while some councilmembers are more narrow sighted because they're elected to a four-year term.

At the budget session, councilmembers expressed surprise at areas which saw big financial jumps from previous years.

Councilman Terry Crow noted waste dumping fees in 2009 were $136,074.13 compared to the 2010 expense of $192,383.55. Crow also pointed out that the City spends $20,000 a year on parking meters and parts.

City Manager Lehman Walker will present the City Council with a draft budget by the end of the month.