by David Chapman
Staff Writer
At the halfway point of the current fiscal year, the City was about $2 million short of its projected budget, according to a report presented Tuesday to City Council.
City Chief Financial Officer Mickey Miller presented Council with a six-month budget review, through March, for fiscal 2010-11. Miller said the projected shortfall through Sept. 30 wasn’t large, given the budget’s scope.
“The general fund is just shy of $1 billion. The budget is $990 million. So $2 million is two-tenths of 1 percent,” said Miller, saying it’s close to breaking even.
The general fund revenues and expenditures for the remaining six months are projected to about $11.2 million short, but are offset by a $9.4 million contingency used to adjust departmental budgets regarding salaries and benefits.
General fund revenues reflect an $8.4 million shortfall, according to the report, including $1.9 million less in sales taxes and $1.6 million less in ad valorem taxes.
Miller told Council members it seems that sales tax revenue has stopped dropping the past several months, ending a year-over-year trend. The hope, he said, is that sales tax revenues stabilize and begin to increase.
The City’s Finance Department provides quarterly updates. The May updates have been emphasized in recent years in anticipation of planning for the subsequent fiscal year, which begins in October.
“As we start developing a new budget, we want equally and separately to pay attention to where we are in the current year budget,” said Miller.
Last year, the shortfall at this point was close to $11 million and Miller said the current $2 million was the smallest midyear shortfall he has reported.
Following the report, Council President Jack Webb said he was encouraged by the relatively low number and hoped an increase in sales tax revenue and other sources over the remaining months of the fiscal year would help eliminate the deficit.
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