I finally pinned down mayoral candidate John Marcum and got him to talk in detail about his accusations of deficit spending in Pinehurst village government. (The documents he is referencing can be found here. ):
Brant, Glad you saw the audited overspending in FY10. If you’ll look at p. 20, you’ll see the borrowing of $1.066 million from the general fund, then track it across the page as money is shuffled back and forth between revenue accounts in each quarter. At the end, the “actual” numbers (not yet audited) show more money had to be borrowed for a total of $1.213 M. Of course in addition, the first full year of Pinewild receipts were squandered on a huge surge in operating expenditures of 17% from Fy 10 to FY 11–over two million bucks!!! Hell of a way to run a railroad and this chronic overspending is now built in.
This year, FY 12, once again starts off a million in the hole and will get worse unless the new Council to be sworn in next month can reduce expenditures. Also unless you dig in to the numbers, you don’t see the $700 thousand in unfunded liabilities and the one million in installment debt, since virtually all buildings and lots are mortgage. We’ll never get a windfall again like the Pinewild money and its a disgrace for it to be wasted, instead of paying off these items and preparing for a sustainable future.
What about the figures for fiscal year 2011, on the same page with the FY 2010 actuals, that appear to show revenue of $15,246,058 and expenses of $14,411,793?
You’re looking at the numbers for the beginning of FY 2011, instead of the actual spending that took place during the year. Even those numbers, however, include both the first full Pinewild contribution of $1.5 million and a borrowing from the fund balance of a little more than one million. This is shown at the bottom of P. 2 and at the bottom of the revenue column on p. 20. They’re a little different but show essentially the same thing–Pinewild money gone, and over one million borrowed. Page 20 also shows the actual numbers as the year progressed and an additional $147K had to borrowed at year end (not yet audited) ….Just read the roadmap carefully that I sent you and focus on the borrowed amounts both beginning year and end year FY 10 & 11 on PPs 2 and 20 and you’ll see the borrowing and use of the Pinewild funds. Also look at the current budget which starts off the same way with a million dollars in excess spending.