Northglenn – A 2001 accounting error led to a $2.1 million shortfall in the city’s budget and the layoffs of 27 city workers in 2004, city officials said Wednesday.
In an effort to offset the projected shortfall, the city also offered early-retirement packages that were accepted by 17 employees – out of 253 staffers at the time.
But late last year, the city’s new finance director discovered that proceeds from a one-half percent sales-tax increase approved by voters in 2001 had not been allocated correctly. Too much money was funneled into the city’s debt service and water-rights acquisition funds, and not enough to the general fund, resulting in predictions of a severe deficit, officials said.
Adjustments have been made, and the city is on solid financial ground, with an $18.8 million general fund budget and a fund balance of $8 million.
“All the monies have been accounted for,” said finance director Brent Worthington.
No individual has been singled out for the error, said Mayor Kathie Novak said. “At this point, I don’t think blaming anyone would do any good.”
Without the mistake, the city likely would not have been forced to make such deep personnel cuts in 2004, Novak said.
The cuts forced the city to run a more streamlined operation, including hiring short-term contract employees, the mayor said, adding that she doesn’t anticipate rehiring laid-off personnel.
“We are a much leaner, more efficient organization now.”
Staff writer Monte Whaley can be reached at 720-929-0907 or mwhaley@denverpost.com.
