Tuesday, April 23, 2024 | St. Lawrence County, NY
To the Editor: Cash Flow calculations include cash in from a variety of sources minus cash expenditures. When cash in includes cash received from bonding, there is a corresponding cash out for the …
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To the Editor:
Cash Flow calculations include cash in from a variety of sources minus cash expenditures.
When cash in includes cash received from bonding, there is a corresponding cash out for the expenditure of that cash. For instance, we received one million dollars from bonding in 2014 to purchase highway equipment, and we actually purchased the equipment.
When using actual 2014 cash flow to estimate 2015 cash flow, and we remove the million dollars in cash received from bonding for highway equipment, we must also remove the million dollar expenditure for the purchase of that equipment.
The calculations supported by Mr. Acres removed the cash received from bonding but failed to remove the expenditure. We did not bond for highway equipment and for energy performance and put the cash into a savings account.
Calculations that remove the million dollars in must also remove the million dollar expenditure in order to provide an accurate estimate.
The estimate used by Mr. Acres to support paying an additional $50,000 in interest was flawed. Beware of “fiscal responsibility” as defined by Mr. Acres.
Fred Morrill, DeKalb Jct.
