There is a difference between a balanced budget and debt

Dear Editor,

I was very concerned when I read Mr. (Mike) McAnally’s comments on the history of expenditures being made by the Administration without competitive bids.

But now I’m extremely concerned about the thought process and understanding of Finance by the Administration and some of our council members. Perhaps it is time for real change in our city

government and term limits, as our Governor has recommended, when we hear Alderman Jerry Albrecht (who has served for over 15 years on the City Council and is on the Finance Committee) say:

“As to the management decisions contributing to the 600 percent increase in debt.

Where did that come from?

The city has operated on a BALANCED Budget for 17 to 18 years.”

Does Alderman Albrecht (who has voted for the increased taxes, single bid contracts (mentioned by Mr. McAnally), most of the bond debt and debt payments of between 5 and 6 million dollars annually)

know that there is a difference between DEBT and BALANCED BUDGET?

The definition of BALANCED BUDGET is: Revenue Equals Expenditures or Expenditures DO NOT Exceed Revenue.

Therefore, is this why the Alderman has voted for the tax increases so that there is enough to cover the bond payments each year and have a balance budget?

The definition of DEBT is: An Amount of Money That You Owe Someone (like Bond Holders and Lenders).

The city spends annually between 5 to 6 million from its budget to cover DEBT. Could this go for other needs within our community i.e.: Crossing guards?

As you can see there is a difference between a balanced budget and debt.

You can have a balanced budget and a debt with debt payments.

Ken Kenney

O’Fallon

This story was originally published July 26, 2016 at 3:02 PM with the headline "There is a difference between a balanced budget and debt."