The following is a cautionary tale for those of us whom, for one reason or another, are forced to live financially from day to day, week to week, month to month, paycheck to paycheck. It’s that adreneline rush we get waiting for money to miraculously appear just in the nick of time, or the belief that credit-card heaven will last forever. Well, maybe not.
Many institutions, including the City of Bainbridge Island as we now know, were not immune from this looming destitution because, of course, people run them. So here’s a good one.
The city’s No. 1 bean counter says he’ll need about $1.7 million to get it through the first three months of 2010, when in April the first of two semi-annual property tax payments arrive. There’s not a lot of cash in the safe, but enough if two things happen during the next month or so: the proposed Vincent Road property sale (worth between $200,000 and $300,000) goes through, which will likely happen; and Metro Park and Recreation District gives the city an estimated $600,000 (part of a $1 million state grant given to BIMPRD) in lieu of taking over the Williams park property.
The park payment is critical, of course, but the city can slide on it until the end of January when an insurance bill of about $600,000 is due. The two agencies aren’t opposed to the proposed deal, but there are a couple of glitches that could cause the city some indigestion. For one, the park district isn’t inclined to sign an agreement that says it “shall actively pursue grants for the Williams property” that would help pay off the city bond used to buy the land in first place. Parks doesn’t exactly quiver when the city bellows, so no way on that one.
Subsequently, if there is a delay deep into January, timing could be a problem. Once the deal is done, it’ll be sent to Olympia and the grant money goes to the park district, which then sends a check to the city. No problem, except it’ll take at least two weeks for the county to sign off on it.
It will all work out, no doubt, but you can also bet your bottom dollar that the city’s need to unload property just to pay its bills will be a pattern for some time to come.
