Sunday, January 25, 2015

BWWB - Budget Woes West Buechel

When I see a budget line item named "Bank Charges," I think bad check fees, overdraft fees or monthly account service fees. But, when I see ten thousand dollars estimated for yearly "Bank Charges" in the West Buechel City budget from the Fowler administration, I scratch my head in wonder.

Bad check fees, overdraft fees or monthly account service fees do not explain ten thousand bucks of budgeted expense.

So . . . this $10k budget item might represent VISA merchant discount payments to a bank for processing credit card transactions, but at a discount rate of 2.5%, the City would have to take in $400,000 in credit card payments to generate that amount of fees.

I doubt that happens, so what's up with a $10,000 City budget item for "Bank Charges"?

These "Bank Charges" might be interest payments on some loan . . . possibly. But what loan?

If that were the case, normal honesty would not call a loan interest expense "Bank Charges." It would be called "Interest Expense."

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