City has budget shortfall – $5 million

mag glass


All: I received a phone call today from Tom Bonfield. The City is expecting a $5.4 million shortfall this year. Council will meet on Monday, February 26, 2007 to discuss options. The date was set earlier when the shortfall was expected to be $1.8 million.



However, Councilman Hall doesn’t tell the whole story. According to Raad Cawthon who handles the City’s public relations:

Cox Communications incorrectly accounted for communication fees it pays for its cable franchise in Pensacola and Escambia County since Hurricane Ivan. The fees are paid to the state and remitted back to the city and county. Pensacola was overpaid. Esc. County underpaid.

Pensacola Finance Director Dick Barker did call the state about the increase in the checks and was told it was correct and due to service increases after the hurricane.

The City modified its 2005-06 and 2006-07 budgets for the increased revenue.

Last week they were notified of the error. It was initially projected to cost the City around $1.8 million. Today, they learned the total impact of the error is more like $5 million.

The City is holding a press conference tomorrow at 3:30 and will have more info then.