Letter: We must prepare for future economic downturn

Posted 3/31/19

To the editor:

A recent Washington Post article discussed how most business economists predict that the United States will be in a recession within the next two years.

The City of East …

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Letter: We must prepare for future economic downturn

Posted

To the editor:

A recent Washington Post article discussed how most business economists predict that the United States will be in a recession within the next two years.

The City of East Providence’s debt level will likely be considerably higher in the near future and interest rates will possibly rise. We need to focus now on being prepared.

EP should begin by examining what happened during the last economic downturn. This discussion usually includes anticipating a decrease in revenue.

Keeping our city’s balance sheet in a condition which will ensure our ability to procure Tax Anticipation Notes (“TANS”) annually is essential.

Our plan should include maintaining a strong cash reserve. It would be prudent to examine the recent Charter Amendments as part of devising overall reserve account strategy.

Articles on this topic also emphasize the importance of focusing proactively on increasing revenue from all possible sources.

So although trying to cut expenses and operate more efficiently is important , this should only be one component of an overall plan.

Jim Briden

Rumford

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