Some people may be critical of the City of Washington reducing or, in some cases, eliminating funding for outside agencies, including nonprofits that help area residents.

Actually, the city’s closer look at how it distributes taxpayers’ dollars to those outside agencies makes sense, especially at a time when the city is losing one of its longtime revenue sources — fees paid by business to operate in the city. Revenues from the issuance of business licenses go away beginning with the upcoming 2015-2016 budget, the result of legislation passed by the N.C. General Assembly.

It makes sense for the city to become more frugal with its money.

In recent years, the council has reduced funding to entities such as the Beaufort County Arts Council and Eagle’s Wings (a local food pantry that serves the poor). In the spring of 2013, the council served notice that future city budgets could reduce funding — if not eliminate funding — for some or all of the nonprofits it has traditionally funded in recent years.

Outside agencies, such as the Zion Shelter and Kitchen, that meet certain needs not met or partially met by other entities would stand a better chance of receiving city money than agencies that don’t meet those needs or duplicate services provided by other entities, according to some council members.

Some council members have talked about cutting funding for some outside agencies by 50 percent or eliminating funding altogether, while others have suggested a series of 10-percent cuts until an agency receives no funding from the city. The series of cuts would allow the agencies time to seek alternative funding to replace the funding once provided by the city, supporters of the series of cuts contend.

Council members have also said they would like a detailed explanation of how an agency plans to use any money it receives from the city.

That makes sense. That way, council members can determine how effective an outside agency is when it comes to spending money provided by the city.

“We need to review the numbers that we fund, the allocations and what kind of reporting data that we need from the agencies about how the money was spent, how the taxpayers’ dollars are being spent,” Councilman Bobby Roberson said in October.

It looks like the council is on the right track in regard to funding for outside agencies.