Councilman Michael Henn.
As a former CFO for major corporations (Von's, KB Home), there is no doubting Councilman Henn's aptitude for finances.
Perhaps he needs to work on newspaper quotes that make more sense.
In this article about Newport Beach's upcoming budget where $32 million more will be spent then brought in, Councilman Henn had this to say:
“The budget this year is a balanced budget, although our expenditures are higher than our receipts”
Now, math, economics, nor finance weren't my strongest subjects (I did best in my history classes), but if expenditures are higher than our receipts, doesn't that mean that the budget isn't really balanced?
And isn't a budget (created by Republicans) which has more expenditures than receipts bad?
Especially in wealthy Newport Beach?
Since I only work as a Corporate Controller and have not risen to the CFO ranks yet, perhaps Councilman Henn's quote makes more sense to those CFO types.
Anyway, the City will be paying for stuff using gifts and donations from Private Folk and Businesses (earmarking, I guess) and from COPs (Certificates of Participation - Bonds, but not really...).
I guess that low interest COPs should make me feel better.
But what I did learn is that borrowing is still borrowing, debt is still debt
and
The City will be borrowing to balance the budget, even one where "expenditures are higher than our receipts.
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