City Administrator Bob Morris reported lower-than-expected revenues for the current fiscal year at Monday night’s city hall meeting.
Several expenses, however, are currently projected to be lower than budgeted for the year in order to meet the lower revenue level.
The dip in revenue is mainly due to lower-than-expected income and sales tax collected so far this year.
According to current figures, Morris estimates the actual 2009-10 revenue in the general fund, which includes property tax, municipal sales tax, home rule sales tax, local use tax and income tax, will be $313,000 less than the actual fiscal year 2009-10 general fund revenue. This is a 5.1 percent decrease.
The problem is that the city only anticipated about $261,000 of the $313,000 difference.
This greater-than-expected difference also has ramifications for the fiscal year 2010-11 estimated budget.
“Assuming flat revenues on all general fund sources, based on our current projections for the current year, we’re showing next year’s budget estimate is about $170,000 less than what we estimated it would be a year ago,” Morris said.
He added, however, it is encouraging to see the magnitude of the decrease in revenues is lessening.
Other positive news came from an update on expenditures in several departments, which, despite the decrease, have not surpassed revenue levels.
In the same report, Morris reviewed planned capital projects for upcoming years.
Projects that are already funded include the annual street maintenance program, South Wilmor and Kern Road overlay work, water tank number two maintenance, waste water treatment plant No. 2 expansion, Dallas Road reconstruction phase one, Briarcliff and Colonial Manor storm sewer work, Summit Road extension and Devonshire Trunk sanitary sewer upgrade.
Morris also identified four projects that still need a funding plan in place in the near future.
These four projects include Washington’s share of the Route 8 improvements, police station renovations, waste water treatment plant No. 1 rehabilitation and waste water treatment plant No. 2 disinfection requirements imposed by the Illinois Environmental Protection agency.
Morris said he would like to get a funding plan in place for these projects, although actual construction may be three to five years away.
Washington, Ill. —
