By: Michelle Langowski
Tulia, TX - Despite a turbulent economy, Tulia has discovered ways to bring their city's budget out of the red.
"We were able to redo the budget and take a good look at the utility and how they interface with the general fund and do a better accounting of what a legitimate subsidy from the utility fund is to general fund," said City Manager Dan Dibel.
The town brought their ratings to what is called an "outlook positive" the rating reflects the city's financial improvement, a fairly low tax rate, and very low debt levels... but some may ask how they went from running in the red for the last three years to a positive budget.
"Just adhering to our financial policies, the goals within these policies, putting the money in the right places pretty much got us to where we're at," said financial director James Davis.
Davis says using their city owned electric utility as an asset while maintaining a five percent reserve balance is what took them out of the negative.
In the end, this is good news for the small town, something their city manager says is extremely important.