Short and sweet version: The City’s General Government Fund had a deficit of over $1 Million dollars as of 6/30/09! Unlike the federal government, local governments in Tennessee can not end their fiscal year in a deficit situation. To remedy this “cash flow” problem, the City was planning to let the Sewer Fund loan $1 Million + to the City’s General Fund. After all, that’s what the City did in 2007 and 2008–illegally and without authorization –when the General Fund had a deficit.
This time, though, it was third strike and you’re out. The city’s old scheme of “robbing Peter to pay Paul” finally got ‘em.
I have a post on my personal blog that discusses the 2008 illegal transfer/loan of $2.5 Million from the Sewer to the General Fund. My e-mail to the State Comptroller’s Office and Mr. Bowling’s reply was apparently given to Interim Administrator Wampler. Click here to see my personal blog post and my e-mail exchange with the State Comptroller’s Office.
Thursday, January 07, 2010
Money Shifting in Morristown, Linda Noe has the story
Posted by Ben Cunningham at 7:25 AM