As a member of the Finance Committee, I continue to try to educate myself re the City's finances - where does the revenue come from, how is it spent, what debt burden do we carry, etc. The above spreadsheet focuses on grants the City received in the year 2010 for projects undertaken. For our small community, I was surprised by the magnitude of grant funding obtained last year. The biggest projects were for improvements to Railroad Avenue and for the Morgan Street Sidewalk, where a large percentage of total project funding came from State sources. I'm still not fully versed in all the lingo, like TIB and CDBG, but I can relate to the projects. I fully expect that the sum of all of these grants of over $1.3 million is by far the most ever obtained by Black Diamond. If you were at Miners Days yesterday, I trust that you saw how wonderful the net results of these investments have been for our community. Many of the smaller grants, however, are much less visible but very important, like funding for marine patrol on Lake Sawyer, public safety investments, assistance in design of a new boat launch, funding our annual hazardous waste recycling event, shoreline master planning, etc. Even as funds are available, it's up to us to take full advantage and put this funding to good use.
One of the dilemmas often faced by small communities is that to obtain grant funding, you must have matching funds available. Last year, through accumulated balances in city investment funds, sufficient city matching resources were available to obtain grants for which we qualify. Personally, I don't expect this grant largesse to extend much into the future but it's often the smaller projects that provide the seed money to help us make the steps forward that we need. Anyway, kudos to staff for doing such a good job in 2009 to provide this funding for us last year. We look forward to positive results again for 2011 and 2012.
When I ask the simple question - how much money do we have in the bank - I find that our City has more funds held in reserve than I would have thought - nearly $4 million in the bank. This stuff does get a bit complicated and the rules for how funds can be used for which purposes continue to cause me a headache - but the bottom line is that at the end of 2010 our City had $3,955,376 in the bank. Part of the challenge, however, is knowing that these fund balances are typically "siloed" - meaning, for example, that wastewater funds must be used for wastewater and not parks or streets etc. If we are short in water funding and want to fund a project, we have to get a loan from, say the stormwater fund or wastewater fund, and pay it back internally within 5 years. Lot's of restrictions. But, overall, looking at the City's fiscal health, these total fund balances are positive and helpful.
Thanks again go to May Miller, City Finance Director, for all of her diligent efforts and that of staff. This is the first of a couple of posts that I plan on this subject - addressing questions like how much debt liability do we currently have as a City, what is our debt capacity, what effect would impact fees (e.g., for fire protection) have on future city finances etc. I will say, that although this stuff can be pretty darn boring, it is also critically important to us.