Rainy Day Fund
One of the things we’ve had to plan for in Erie was the day the economy retracted and growth stalled. We knew 6 years ago economies go through peaks and valleys and planning for the boom, bust cycles was important.
Being fiscally responsible includes saving during the good times. Our town administrator is a former State Auditor’s office employee and is fully aware of the pitfalls of overspending. His guidance was instrumental in being well positioned today.
In Erie we have planned for these tougher times and are now weathering a significant slowdown in growth and the economy in general that started in 2008. Where some of our neighbors are cutting services, we are maintaining them for two important reasons. First, we did not hire many permanent employees during the growth boom, instead we relied on contract help. Second we put away funds and to the credit of the Trustees, they kept most discretionary, special projects at bay.
What that means in real terms is a General Fund balance of approximately $15 million dollars. Last Tuesday evening, at our Board of Trustees meeting, $7.5 million dollars were officially set aside as a “Fund Stabilization Reserve”. In more common terms, a “Rainy Day” fund.
In 2009 we ran a small deficit and I anticipate the same in 2010. But we have the cash to ensure services – police, roads, parks & rec, etc. – are maintained. I estimate we’ll be sustainable, even if the economy stays flat for 2-3 years. Assuming a second grocer or big box comes to town in that time frame, we should be able to extend beyond that period without tax increases or reduced services.
At the State of the Town address, I went over a few financial slides. You can find the entire presentation by clicking here. On Slide 9 is a 12 year history of revenues and expenditures along with a graph on the General Fund balance savings, and how that savings is now slowly decreasing.
The Board has been supportive of the fiscal prowess necessary for sustainability. I’m pleased Erie is positioned to be fiscally viable now and well into the future.
Best Regards,
Andrew
303.482.3037
Dates that may help with your planning:
- March 14: Craftology, Simple Hand Embroidery – 4:00 PM Erie Community Library
- March 15: Erie Town Board Candidates Forum hosted by HOAs - 7:00 PM Erie High School
- March 18: Erie Town Board Candidates Forum hosted by the League of Women Voters and the Erie Chamber of Commerce – 6:30 PM Erie Middle School
- March 19: Earliest date printers can mail ballots to registered voters
- April 3: Erie Community Park Ribbon Cutting – 10:00 am
- April 6: Last day to vote in the Erie Election
- April 13: Newly elected Mayor and 3 Trustees take office – 6:30 pm
- April 16/17/18: – Erie High School Drama – “You’re a good man, Charlie Brown”
Andrew: though my wife and I left Erie several years ago, we have maintained contact with our many friends there, and stay on your website to see the growth and success of the town since our departure. I just wanted to say how pleased I have been in watching those successes, and to congratulate you and your administration, particularly in regards to your long-term planning. To have a “rainy day account” funded during good times is something we had never seen while we lived there, and certainly do not see in our local Durham, NC, County, or State of North Carolina, not to mention the Federal fiasco that is now underway. Should you choose to move here and bring your entire staff, I would be deeply appreciative, and would be the first and most enthusiastic for you! Best wishes, Jon and Janet Arvik, formerly of Northridge, Erie, and proud of it…..