The City of Shreveport is listed on a national online article as being one of the cities with the lowest amount of cash on hand. So what does this mean?
The article comes from zeroedge.com, and it says the city of Shreveport would only be able to operate for 10 days on its reserve fund money.
City Council Chairman Michael Corbin says this article is pretty close to reality. "We could not operate as long as we need to."
He says in the past, the reserve fund has been as high as $9 million, but recently it has seen as low as $4 million at the end of an operating year.
Money in the reserve fund is cash that is not allocated to be spent by the city. Each year, the city projects how much money will be left in the reserve fund.
This money can be used in case of an emergency to fund police, fire, and city employees.
Corbin says the balance has dropped over the years due to the city not being able to keep up with its budgeted expenses. "Some obligations can't be met and we dip into the reserve funds to pay for that."
The city wrapped up 2012 with a little more than $6 million dollars in its reserve fund. This year, the city hopes to end with about $4 million, and in 2014 the city hopes to end with about $6 million.
This issue is now one the main topics of concern in the upcoming city budget. "The reserves continue to be at a very low rate and no hope of building those up then we have to look at how to cut expenses," says Corbin.
Copyright 2013 KSLA. All rights reserved.