The state required Comprehensive Annual Financial Report for fiscal 2016 shows that Petersburg has a way to go to attain real financial stability and to be able to access credit markets at reasonable interest rates.
Petersburg’s Interim Finance Director Nelsie Birch noted the report covers the period from July 2015 through last June.
"The city has a negative $7.7 million dollar fund balance. There is no cash in the general fund and the general fund, essentially, has to borrow from other places or not pay vendors," explained Birch.
Petersburg has a policy, she said, to have 10% of its general fund and school funds together in a fund balance that equates to just over $12 million.
"So in order for the city to meet that level it needs almost $20 million in a fund balance reserve."
City council, she said, has been given some real estate and public utilities options to consider.