DuBois Weather

DuBois Dealing with a Budget Deficit

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DUBOIS – The City of DuBois has a budget deficit.

At Monday’s city council meeting, it was disclosed that a series of recent calculation errors have left DuBois with a budget deficit of $919,000. Officials say the errors involve worker’s compensation, insurance, debt service interest, and principal payments. The City is planning to deal with the deficit by cuts in spending in all departments. The specific details will soon be made public on the City’s website, and then voted on at the May 28th meeting.

In other financial related business for DuBois, the City announced that it will be exploring the possible refinancing of three loans. DuBois currently has five outstanding loans which total approximately $14-million. Two of the loans have what are considered to be reasonable interest rates while the remaining three have variable rates. City Manager Shawn Arbaugh stated, when asked, that the existence of the loans taken out at the time of the consolidation study were known, but their interest rates were a surprise to learn.

·         Possibly refinancing these loans are being explored.  Loans would require getting a better rate on interest.  Bonds would be cheaper once issued, but there are costs to issuing bonds that could reduce the benefit of refinancing.

·         Arbaugh said there was no reason to suspect anything nefarious happened to the money from the loans and the previous refinancing, but prior accounting methods made it hard to tell what all the money was actually used on.

·         Mayor Pat Reasinger said some of it was used to balance the budget.

·         Arbaugh, when asked, said the City isn’t going to go bankrupt.

 

In action regarding the upcoming DuBois Days event:

The City voted to approve DuBois Days’ permit to use the city park, allow for the traditional free swim at the public pool, and the quote for the fireworks show.

–         The free swim and fireworks show was challenged in light of the existing debt and newly discovered budget deficit.

–         City Councilmember Jennifer Jackson defended both as things the citizens of DuBois needed in these times.

–         The fireworks bid came in at $8,500, below the budgeted $10,000.

–         The free swim doesn’t cost the City more to hold.  The public pool would cost the same if opened or not.  There is potential lost revenue, but the free swim could lead to people visiting the pool more often.

–         The final day for discounted early pool passes is May 24.