Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, February 12, 1991 TAG: 9102120456
SECTION: VIRGINIA PAGE: B2 EDITION: METRO
SOURCE: LESLIE TAYLOR STAFF WRITER
DATELINE: LENGTH: Medium
Citing slow economic conditions, Finance Director Frank Turk told council that a $20,391 overall decrease in expenditures will offset only a portion of the $201,251 decrease in revenues.
As a result, the city will be forced to use $180,860 from its unappropriated balance to adjust the current fiscal year's budget, cutting reserve funds by more than a third, Turk said.
The remaining $262,366 balance in unappropriated funds is "not one we want to loosely dip into," Turk said.
"Caution should be given to any extensive use of this amount, since it may be needed to offset further deterioration of revenues," he told council.
Budget adjustments were required for several reasons - an economic downturn, the rise in prices caused by the gulf crisis and Gov. Douglas Wilder's budget reductions program, Turk said.
Several resulting examples include:
A $350,000 decrease in personal property taxes, primarily the result of a slowdown of the buying and selling of cars.
A $133,765 cut in state sales tax money for education.
A $500,000 decrease in projected revenue from the city's selling of electricity to residential and business customers. Turk attributed that to a relatively mild winter that hasn't required as much electrical usage as was projected for the current fiscal year.
"Overall, the increases and decreases in revenue projections represent less than one percent of total revenue and normally would not be of concern in times of economic stability," Turk said. "However, the trend of decreasing revenue is unsettling as we look to 1991-92."
by CNB