New state audit criticizes spending by city officials

A state audit released this week is criticizing Lynnwood officials for spending millions of dollars in reserves and leaving the city in bad financial shape. Our news partners at the Seattle Times have the full story.

The report by the office of state Auditor Brian Sonntag found that Lynnwood officials blew through a $6.1 million general-fund balance in 2008 to end with a negative $115,733 balance in 2009. The city also exhausted its $2 million reserve fund and borrowed $3 million from its utility fund to pay for daily operating expenses.

In spending down its reserves, the city violated its own policy that requires a minimum of $4 million be left each year in the general fund. The audit concludes that Lynnwood’s deficit spending puts it “at risk of not being able to meet all of its financial obligations.”

City officials said the sharp drop in sales-tax revenues has been felt by cities across the state and nation.

Mayor Gough’s final budget proposal will be released Monday.

  1. I’m not surprised. It is time to change our form of city government and hire someone that knows what they are doing!!

  2. The Mayor and Council keep asking citizens and employees to help them find solutions. It seems they’re able to come up with their own plans for getting into trouble, but put the responsibility for getting out of trouble on those who stand to suffer their consequences, like police, fire, preschool, youth, and more.

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