Question from Mr Green

I heard on the radio yesterday that Berea will have a projected surplus of $16 million. That's $1000 (too much!)for everyone in Berea. How is that justifiable and isn't it against the law to carry such a municipal income surplus?

Steve Connelly answered:

That information is incorrect. To understand the city budget, a citizen should first separate the utility operation from the city general fund. The audit ending 6-30-2007 showed the Berea city general fund with a surplus of $6,803,216. I anticipate that the audit ending 6-30-2008 (which should be available in October) will show a slightly lower surplus. The purpose of a surplus is to have a hedge against an econic downturn or a city emergency. It also allows the city some flexibility in handling projects.