Revenue 11 percent less than predicted
March 4, 2010
By Tim Pfarr
City officials recently released finance statistics from the fourth quarter of 2009. During the past year, the city collected a total of about $5.75 million, 11 percent less than the city had budgeted.The city cut $482,000 from its operating budget to reduce expenses, but it still used $239,627 of its ending fund balance — unused funds from previous years — to close the gap between revenue and expenses. The draw brought the ending fund balance to $1.8 million.
The main areas of decline in the city’s revenue between 2008 and 2009 were in sales tax and development revenue, Finance Director Christine Olson wrote in her report.
The city collected $126,000 less in sales tax in 2009 than it had in 2008, and it collected $100,000 less in development revenue in 2009 than it had in 2008. The city received only three single-family permits in 2009, and no commercial permits.
Cutting $482,000 required city officials to eliminate three staff positions, as well as slash funding for City Council retreats, landscape maintenance, office supplies and other items.
Olson said she does not yet have an estimate as to how much money the city will need to draw from its ending fund balance this year, as the City Council is still adjusting the 2010 budget.