City Spending Slightly Ahead Of Revenues By March’s End

By Tammy Gray-Searles
   Expenditures exceeded revenues for the City of Holbrook at the end of March, or three-quarters of the way through the fiscal year.
   “We will continue to monitor all expenses and believe that there is no reason to be concerned as of yet, as we anticipate making up this deficit,” Finance Director Randy Sullivan wrote in a memo to the city council.
   Sullivan noted that the city still has not collected an anticipated $75,000 in flood control district funds and that none of the anticipated transfers from the city's savings account have been made.
   “General fund currently has $2,985,018.32 in revenues and $2,999,784.94 in expenditures, and is operating at a loss of $14,766.62,” Sullivan wrote. “The budgeted $75,000 from the flood control district is yet to be received. Staff is gathering the required information for the submittal.”
   Though city sales tax revenues are on track, when added together, tax revenues from all sources continue to be down, but less than in the last financial report given to the council through the end of February. According to the report, at the end of March, tax revenues were down by $7,027.02, as opposed to the more than $35,000 that they were down as of the end of February. Sullivan previously explained that he believed the tax revenues would be back on track before the end of the fiscal year in June.
   Although the budget calls for the transfer of $822,000 into the city's general fund from its Local Government Investment Pool (LGIP) account, which serves as the city's savings account, no transfers have been made yet. Sullivan noted that “no transfers will be made until it is necessary.”
   According to Sullivan, most departments are either at or below anticipated expenditure amounts, except for administration, sanitation and water. He explained that administration is slightly over budget at this point in the fiscal year due to unexpected legal expenses. The sanitation and water departments, although 3.7 and 3.9 percent over anticipated expenditures, respectively, are faring better than a month ago when they were 4.2 and 4.5 percent over budget, respectively.
   Even with overall expenditures slightly above 75 percent of the budgeted amount at 75 percent of the way through the fiscal year, utility fund revenues are $171,485.06 more than expenditures.
   Regarding the utility fund Sullivan noted, “Several large capital projects have started and no transfers have been made out of reserves.”
   Airport and Highway User Revenue Fund (HURF) revenues continue to be a concern.
   “The airport is currently operating at a loss of $471.79. Revenues are down by $25,540.74. There is currently a fuel inventory of $3,855.16 that will be resold to offset expenses,” Sullivan wrote in the memo.
   Like other cities and counties throughout the state, Holbrook’s HURF funds have been cut by the state. Sullivan noted that HURF revenues are down by $125,350.22 this fiscal year. He also pointed out, however, that the city has been able to scale back expenditures based on anticipated HURF funds and still has $174,162.19 available.
   Overall, at three-fourths of the way through the year, the city has received 47 percent of anticipated revenues and made 44.2 percent of planned expenditures. These numbers, however, also include planned transfers from savings, as well as proceeds from potential financing of major capital projects that are unlikely to take place before the end of the fiscal year. Revenue from city sales tax and state shared revenues, two major sources of income for the city are on track at 77 and 76.1 percent of anticipated amounts collected, respectively.