Fred Warchol: Atwater’s city budget ‘balanced,’ on the precipice

Atwater officials don’t know the difference between “debt and deficit,” and the citizens of Atwater are suffering for it.

Accounting professionals agree: Deficit is a shortfall of money coming in, relating to money going out. Debt is the result of money borrowed to cover that deficit. It appears city leaders can’t grasp that concept, but are proud as a weasel that they have a balanced budget. The so-called balanced budget is as misleading as a Kabuki dance. Truth be told, the budget was always in deficit, until the city manager took the easy way out, and borrowed $3 million ($2,966,199 to be exact), from the sewer enterprise fund.

So, do we have a real balanced budget? Well, sort of. But it’s built on a $3 million mountain of debt. Of the six cities in Merced County, Atwater is the only one whose general fund is swimming in debt, and the only one closed to the public every Friday. City leaders say they are pleased with their finances – they shouldn’t be. Their claim is nothing more than lipstick on a pig.

This story was originally published September 15, 2016 at 5:40 PM with the headline "Fred Warchol: Atwater’s city budget ‘balanced,’ on the precipice."