City leaders work to avoid budget shortfall

Projections of revenues and expenditures for the current fiscal year show revenues coming in at $4,000 more than expenditures, according to a presentation by City Manager Josh Kay.

That said, there are no assurances those projections will become reality, Kay told the Washington City Council on Monday. His presentation showed a projection of $15.143 million in revenue, with projected expenditures of $15.139 million.

“Is it close? Yes,” Kay said, referring to the city’s revenues being able to cover expenses this fiscal year. “The goal of ending the fiscal year in the black is still very much possible, I believe, and still very much in my mind and certainly in the department heads’ minds as well.”

Councilman Doug Mercer isn’t so optimistic when it comes to the difference between revenues and expenditures. He believes the city could face a significant shortfall between revenues and expenditures in the 2011-2012 fiscal year, which began July 1, 2011, and ends June 30 of this year.

“We’re looking at, in my opinion, somewhere in the range of a million-dollar shortage at the end of the (fiscal) year,” Mercer said in response to Kay’s remarks. “If we can hold expenditures to the levels you’re projecting, we’re going to be reasonably close. Your number is, what, $4,000?”

“Yes, sir,” replied Kay.

“You’re figuring right to the brink,” Mercer said.

As of the end of January, the city had taken in$43,853,658 in revenues and spent $43,689,782, a shortfall of $163,876, according to Kay’s presentation. The city’s budgeted revenue and expenses for this fiscal year come to $74,902,615.

As for the city’s general funds, those revenues and expenses are budgeted at $16,075,313 in this fiscal year. At the end of January, the city had taken in 51.1 percent ($8,213,894) of its budgeted revenues for the general funds and spent 60.31 percent ($9,695,077), a difference of $1,481,183, according to Kay’s presentation.

When combined, all utility funds were in the black at the end of January, Kay noted. The water fund was in the red by nearly $30,000. The solid-waste fund was in the red by $140,000 by the end of January.

Hurricane Irene was a factor in causing increased expenses for the city in some funds, Kay noted. The city expects the federal government to reimburse it for some expenses related to the hurricane.