Mayor: Cash reserve dip due to faulty accounting
The mayor of Conway says faulty accounting or human error — not theft — is the cause of the city's cash reserves being about $1.8 million lower than expected.
The city has about $1.2 million in its reserve fund — not the estimated $3 million city officials had thought was available.
Mayor Tab Townsell says the biggest factor is the city wrongly included $933,000 from an electricity franchise fee in the reserves. That money had been dedicated for economic development and was used as the first payment on a $2.2 million bond issue that's financing work on the site of the new Hewlett-Packard Co. center.
Townsell says a second factor is that sales tax revenue fell by 1.2 percent while the city had budgeted for a 4 percent increase.
Information from: Arkansas Democrat-Gazette, http://www.arkansasonline.com