City Auditor Reports Significant Carryover Funds

City Council returned after their break to address several items on the agenda including the city budget projections.Auditor Kathy Hecht began her office’s report by claiming this year’s funds brought ‘good news.’“I am happy to say I have good news for next year. We are projecting a three million carryover this ear,” said Hecht. “We are pretty excited about that.”The large amount of carryover results from the projected revenue coming in one million over and city spending coming in about one million less than what was collected and the amount of money that will be unspent at the end of the year, according to the auditor’s report.“I believe the revenue has come in above budget projections this year due to the fact that we have been conservative in estimating our resources while incorporating expected cuts from the state, specifically the Local Government Funds, Tangible Personal Property Taxes and Estate Taxes,” said Hecht.The report also indicated a reduction in the street and street rehabilitation funds. Hecht expressed the hope for the funds to be replaced with new grants in 2013 in addition to the .10 percent tax increase from 2011 being phased out.In addition to the general fund carryover, the other major carryover funds included water with $800,000 and the sewer department with $700,000.“Budgets are a little tight in water and sewer,” said Hecht before recommending an annual raise of three percent to both areas.Concerns were raised over the lack of revenue for the Transportation Department. With zero revenue projected, the city will need to transfer money to cover fuel expenses.The Auditor’s office also projected the 2013 revenue estimate for the city’s general fund to be $11,800,000 and planned resources to be $14,800,000. The projections for 2012 income tax yielded $9,018,394 that has already been collected, according to the report.Mayor Wiehl anticipated further spending of the city’s funds such as improvements to the parking garage on Washington St. and building repairs to City Hall.“There are always anticipated and unanticipated needs,” said Wiehl. “We still have big projects and next year’s Oxbow Bridge is a major one.”The Oxbow project refers to the Richland Avenue bridge which will undergo major construction during the summer of 2013.“As we close out October and November, I will have more accurate figures and continue to update you for the final budgeting process,” said Hecht. “Keep in mind that, while thoughtful and based on experience, these projections are just that – projections.”