Is city budget overspent?
Published 12:00 am Monday, July 16, 2007
Dear Mr. Evans:
According to the information given to us by Finance Director Mitchell Monday night on the &8220;Budget to Actual Report,&8221; the following line items are already overspent for the fiscal year which does not end until Sept. 30, 2007.
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Liability Insurance and Claims 117 percent of budgeted $329,883 spent
Dues to National League of Cities 115 percent of budgeted $1,500 spent
Legal Expenses 111 percent of budgeted $25,000 spent
Traffic Light Maintenance 119 percent of budgeted $7,000 spent
Workers Compensation 101 percent of budgeted $210,000 spent
Uniform Rental 109 percent of budgeted $35,000 spent
Capital Outlay 283 percent of budgeted $35,053 spent
With three months remaining in this fiscal year, we could face a serious financial problem in shifting money from other General Government items to cover these excess expenditures.
It is likely that we will have significant additional expenses in Liability Insurance and Claims, Legal Expenses, Workers Compensation, and Uniform Rental in the remaining three months of the year.
Other areas of city government also have some expenditures which are approaching being over the budget or are already over the budget.
97 percent of budgeted $8,000 spent
Dues to Associations 141 percent of budgeted $300 spent
Miscellaneous 100 percent of budgeted $845.82 spent
102 percent of budgeted $20,000 spent
Budget Supplies 110 percent of budgeted $5500 spent
Photographic supplies 120 percent of $500 budgeted spent
I believe the policy is that these departments can move money from another line item in their budget to cover these excessive expenditures.
I trust that the movement of monies to cover the expenditures over 100 percent will appear in our next report.
With 75 percent (nine months) of the fiscal year gone, there are at least 75 line items where departments have spent more than 75 percent of the amount budgeted for the year.
This is a matter of concern if departments continue to spend at the same rate as they have the first nine months of this fiscal year.
I suggest that the Council, as the Finance Committee, look at these items, particularly the General Government items, and determine what can be done to avert a financial shortfall.
Councilman Ward 1