Friday, February 25, 2011

Grand Terrace & Stater Bro's Fund Set Aside

The action taken to set aside funds to payoff Stater Brothers is a prudent act of the current city council. As much as I am against making payments to Stater Brother's while not giving the same advantages to other businesses in GT thus giving Stater's unfair advantage over other businesses, I have to say setting aside the already obligated funds into a designated fund is the best way to account for such a liability and designation of funds. This insures the funds that were identified as "available" for the council members who approved the expenditure, remain available to pay for the contracted obligation.

This protection is not only needed against the actions proposed by Gov Brown, but by our own city management and council who clearly need to have funds set aside and designated in order to control the city's spending or overspending of funds. Robbing Peter to pay Paul has been the norm in GT Financial Management in the past. By designating funds, obligating those funds for contracts when they are approved forces the "Available Fund's Balance" to reflect the real amount available.

If the State Government or Federal Government could over-ride the contractual obligation between GT and Stater Brother's Markets all the better. Then the State can have the money that came from the state and the Federal Funds can be used to stimulate jobs that are not retail, which is not where stimulus investment gets the biggest bang for it's buck. Manufacturing jobs like at Archer's or Waldon Pump, or even Wild Bill's Mustard would create product that could be sold outside GT and that generates real economic growth. Ah but no one sees that funding a retail store is economic investment to see our money or investment circulate only one time in GT, unless what we buy is made in GT.

Unless incomes increase to buy more sales tax can not increase. Stater's will not be increasing the total income base of Grand Terrace when it moves into it's new store. So the use of stimulus money for this use is not efficient use of those funds.

It would have been better to repair the missing drain conduit than to increase Stater's bottom line. But, given the Old Council's Action, (Include Stanckiewitz and Garcia who voted Yes to Payoff Stater's, and waive Development Fees.), setting aside the money is a good restraint on the Council and City Management.

D. Hurst should be given a copy of the invoice for the checks she questions on the check register. If the Finance Department can't release the invoice they paid they should not make a payment.