Tuesday, May 22, 2012

New Mi-Connection Agreement - What to do with the money?

Tonight is set to be a good evening for Davidson financially with Mooresville voting 4-2 to give relief to the Town on the Mi-Connection front. The only real question left is what will the Board do with the money.

My hope is that this initial $1 million windfall is used to to replenish the money used from Fund Balance over the past couple of years. Using roughly $900,000 of the $1,087,000 that this new agreement will free up in the current budget, the Town can replenish the fund balance to the historical 40% target by the end of the upcoming fiscal year.

The remainder should be used to ensure our public safety officers have what they need including appropriate cost of living adjustments. Anything left after that should go to outstanding equipment needs for public safety as well.

Next budget year should begin to use this revenue to lower tax rates to more comparable levels to our neighbors.

This approach does two things. First, it shows the LGC that Davidson is serious about getting its financial house in order. Second, it shows Davidson citizens that the Board is willing to make a hard decision in the Town's financial best interest rather than figuring out how to spend more money.

Finally, whatever the decisions made on how this money will be spent, I hope there will be more questions asked in public than what Mooresville's Board did last night. Don't get me wrong, I'm glad they have thrown Davidson this lifeline. However, I'm sure their decision to do so without public discussion raised some eyebrows. That hopefully will not be the case here.

Update: Town decides to put entire amount into fund balance initially and raise fund balance percentage of budget to 45%.  Story at DavidsonNews.net.  Excellent news for taxpayers.

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