Big insurance payment affects cash flow

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By David Giuliani

The city is watching its cash flow closely because it paid all of its insurance premiums for the year at once, rather than breaking out the bills into payments, officials say.

Six city departments are over budget, in part, because of the city’s insurance payment in September. The insurance is for property, liability, workers compensation, law enforcement, and directors and officers.

Tana Vega, the city’s interim finance director, said then-Finance Director Abran Romero took the initiative to pay the entire insurance bill in September because the city had been late in its payments the previous year, before Romero came aboard.

“It’s affecting the cash flow,” she said at last week’s City Council meeting. “We need to stay on track on monitoring our expenditures and watching cash flow.”

City Manager Timothy Dodge said all expenditures of $5,000 or more go through him.