The city's primary "savings account" to use for a rainy day will dwindle significantly by 2008 if commissioners continue to spend at their current rate, the city's top financial executive said in early April.
Ed Mullins, the city's director of finance, told commissioners at a study session that the balance in the city's general fund would shrink from about $14 million to about $2 million by 2008 unless commissioners are willing to consider a spending slowdown or tax increase, or some other revenue growth occurs.
"In three to four years, it largely will be gone," Mullins told commissioners.
The fund balance is accumulated by socking away money that was left unspent during previous budgets. At $14 million, the current fund balance is considered healthy. That represents about 30 percent of the city's total general fund, which is the main account the city uses to conduct daily business.
Commissioners have said they're comfortable with the balance dropping to as low 15 percent of the general fund. But Mullins said his projections show the city will start drawing down the fund for several years instead of adding to it as in the past.