Saturday, September 5, 2015

Simple truths are hard, I guess

The simple truth about annual budgets comes from the purpose to know how taxpayer money is being spent.

So, when West Buechel's annual budget has a single line item "Office Utilities" that includes every gas and electric bill for City Hall, the Police Department, the TEM Building, the Community Center and all the street lights or parking lot lights, it does not fulfill the basic function.

The City has seven different LG&E accounts.
  • City Hall 1st floor
  • City Hall 2nd floor - Police Department
  • TEM Building
  • Community Center
  • Three different groups of outdoor lighting
 Why are they all lumped together into a single budget item along with the several different water bills?

 Would it not be smarter and better to separate the expenses for the different properties so you'd know, for example, exactly what it costs the City to own the TEM building whether it is being used or not? 

There is an "Insurance/Bonds" budget item in "Administrative" for more than $100,000. This includes all automobile casualty/liability insurance. The insurance for all police cars, public works trucks and the Community Center van are all lumped together in "Administrative," along with Worker's Compensation insurance for all employees.

How can you make well  informed business decisions when the basic cost data is so messed up?

It's not possible.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.