NEWS RELEASE 11/9/2011
|CITY OF FLINT FINANCIAL POSITION IMPROVES|
City of Flint Financial Position Improves****|
FY11 Combined Operating Deficit Reduced to $7.34 Million
Cash Flow Balances Average More Than $10 Million Per Month
FLINT-City of Flint financial position has significantly improved. The deficit is down and the cash flow is up. City of Flint Finance Department has completed the Fiscal Year 2011 (FY11) end-of-year close and combined operating deficit calculated at $7.34 (unaudited). This is down from projection of $14.62 Million at the time the new budget was adopted in June 2011.
Mayor 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 is 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. Note that these potential savings are
not included in the cash flow projection so as they are implemented the
cash flow will improve further.
The documents showing the details of the FY11 general fund with
the combined transfers from other operating funds and also the cash flow
projection spreadsheet can be found at the following link: