Members of the Jeffersontown City Council were a bit surprised when the Administration distributed its latest financial statement at Wednesday morning's meeting.
City Clerk Jim Leidgen distributed a "statement of operations" that shows the city is doing quite nicely, thank you, with a surplus in its budget of $1,156,108.57.
This news comes after the city scaled back spending significantly in the last year. Leidgen wrote in an e-mail that the surplus is the result of accurate forecasting of revenues (most of which come from an occupational tax on employees of the Bluegrass Industrial Park) and controlling of expenses.
The city government, which reported annual revenues of $15.8 million, instituted a policy freezing discretionary expenses and restriction of travel. It cut back the amount it gave to charitable organizations. The city did give its employees a scheduled 3 percent raise.
In addition, some expected retirements didn't happen, saving the city some expense.
But the $1.1 million surplus was a surprise to some members of the Council, including Bill Dieruf, who's running for Mayor next year against incumbent Clay Foreman and fellow Council member Kay Ackerson.
"All the information pointed to a break-even year, not a surplus. It was interesting that we suddenly have a surplus going into an election year," he said.
Member Ray Perkins said he questions the budget cuts in light of the present surplus.
Dieref said the city had better consider making some investment in the Industrial Park, but added that he also thinks the city should be saving for darker days ahead.
Leidgen agreed that caution is the key in managing the budget. "It will be important to keep a close eye on Occupational, Property and Insurance Premium revenues. It's possible that we could still see a dip here in Jeffersontown," he wrote. "Though the surplus is good news, I hope we are cautious during this fiscal year. If Revenues come in short of plan, we may need some of this surplus to carry us through."
That all sounds credible, but Dieruf and others on the City Council are plenty suspicious of Foreman's methods when it comes to city money.
The Mayor's been keeping a low profile since the scandals of 2008 -- involving oversight of city gas pumps, the firing of a friend he hired as Public Works Director after he was arrested on drug charges, and questions about his personal life.
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