The city is expected to have an additional $900,000 to spend on the general fund, enough to fill most of a roughly $1 million budget deficit this year. The administration will recommend to council how to spend the money. Individual budget shortages include the police and fire departments.
The city will have an additional $902,213 in the fund that pays for police officers, firefighters, the parks department and other city services.
The auditor’s office has increased its general fund revenue projection by that amount for the 2012 budget, nearly enough to fill a roughly $1 million deficit.
The budget was not discussed at Monday’s finance committee meeting or at the council meeting.
However, the auditor’s request to amend the revenue projection was listed on the meeting agenda and is scheduled for first reading at the next meeting.
Including the additional funds, the general fund budget, which also supports the operation of the offices of elected officials, now stands at roughly $52 million, said Joseph DiRuzza, the city’s finance director.
The additional revenue is expected to reduce or eliminate the city’s need to dip into capital improvement funds, including a portion used for street paving, to balance the budget.
Out of the $902,213, about $617,000 is attributed to additional income tax revenue and $160,000 will be from additional inheritance tax revenue, according to the auditor’s projections.
The capital improvement budget, which funds street paving and other projects, will receive an additional $250,000, which is on top of the $902,213, according to city records.
When City Council voted 10-2 to approve the general fund budget last month, the city administration said that the auditor’s office and the park, police, fire and health departments faced budget shortages.
DiRuzza said he and Mayor William J. Healy II will discuss how the $902,213 will be allocated. City Council will vote on the administration’s recommendations.