The Shadrach Solution: Slush Fund #1 - Interest Revenue
- Tom Shadrach
- Jun 30
- 1 min read
Updated: 3 days ago
Using Interest revenue we can cover the City Manager's budget shortfall and add all the police officers recommended by the police chief for the FY 2027 budget. I predict Interest Revenue for next year will be $15 million. We don’t have to wait for the referendum to start saving money and meet our needs.
Slush Fund #1: Interest Revenue Interest Revenue has grown to a significant value over the last few years. Treasury Rates have gone from .01% to 4.5%. Our Fund Balances plus reserves have also increased steadily over the last 5 years creating significant cash balances in City Fund accounts. A new financial policy should be established to recognize Interest as a revenue source for funding city personnel and operational cost on a recurring basis. Although treasury rates can fluctuate, they are in large part predictable over a 2-year period.
The city finance department has refused to recognize Interest Earnings as a revenue source because of its unpredictability. This is simply not true and has been a source of funds available for overruns and funding for projects that are not properly vetted for public input. Interest Revenue creates a surplus in our budget process that is required to be a "balanced" budget by statute.
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