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Wednesday, May 1, 2013

City Commission taps General Fund for $500,000 making 2012-2013 a very expensive year.


The City’s fiscal year ends on June 30th. On that day, the most expensive year in the last five years of City history will have taken $500,000 from the City’s General Fund. The amount is more than double that of any General Fund Deficit posted in the last five years. 2012-2013 may be in terms of actual dollars spent (or committed) the most expensive year in the City’s history.





 Weeks ago,  fiscal year 2013-2014,  with a proposed   -$447,227 addition deficit to the General Fund was slated to be possibly the second most expensive year in City History. That possibility still exists  but an 
“essentials only “  strategy in  budgeting has brought the year beginning  July 1 2013  down to a manageable  -$111,804  deficit which if it stands will be the  fourth  most expensive  year in the past seven.
Today the City Commission will conduct a public hearing and hold a special meeting to adopt the fiscal year 2013 and-2014 budget. It will be a 5:30 pm meeting at City Hall.

Understanding the General Fund
The General Fund is the is the City's main pocket book from which the bills are paid.In recent years at its height in 2011-2012 it was $4,821,909, at its lowest in 2012-2013 it is at an estimated $4,293,988. The difference reflects the  estimated excess expenditures over revenues of $527,911.
 Understanding the $527,911 Deficit
It is a result of three things. The Commission of 2012-2013 had revenues of -$100,000 less that the one that preceded it.

2011-2012
2012-2013
Difference
Mayor
Zambricki
McClure

Property Taxes
7,082,689
7,026,479
56,210
Special Assessments
24,569
10,544
14,025
Licenses Permits
523,801
603,710
-79,909
State Sources
297,230
285,685
11,545
Charge for Service
39,546
35,537
4,009
Fines and Forfeitures
441,094
450,000
8,906
Investment income
25,557
43,646
18,089
Other Revenues
412,423
277,451
134,972
Operating Transfers in
0
12,900
12,900
Total Revenue
8,846,909
8,745,952
100,957


The Commission of 2012-2013 was not adverse to spending money. Expenditures exceed that of every recent commission with the exception the 2008-2009 Commission which folowed on the heels of major economic collapse.
The only other commission to come close in spending was the 2009-2010 commission which began in the May of Nig three bankruptcies

Year
Mayor
Expenditures
Notes
2008-2009
Zambricki
9,351,928
2008 Real Estate Wall Sreet Crash
2012-2013
McClure
9,273,863

2009-2010
Kellet
9,258,552
GM Chrysler Bankruptcy
2007-2008
Hardy
9,194,173

2011-2012
Zambricki
8,708,038

2010-2011
McCready
8,464,426



The Commission of 2012-2013 also ear marked $425,000 for roads.This money isplanned for  Orchard Ridge Road on a project slated for this summer. Last year the city spent $723,000 on paving Epping Lane and revamping Kennsington Rd. Some of this money perhaps as much as half may be coming back in government funding.

To understand the process by which these decisions are made you have yo understand the budget process which varies city commission to city commission. 

Year
2007-2008
2008-2009
2009-2010
2010=2011
2011-1012
2012-2013
2013-2014
Mayor
P.Hardy
M.Zambricki
D.Kellet
M.McCready
M.Zambricki
S.McCLure
S.Mclure  TBD
Excess Revenue over or   under Expenditures
$35,250.00
-$213,496.00
-$170,173.00
$680,432.00
$113,440.00
-$527,911.00
-$111,804.00

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