At the July 18 special City Council meeting, Assistant City Manager Martin Lyons presented a “first quarter” financial report to the City Council. Because the present fiscal year is only 10 months long – from March through December – the quarter is about 30 percent of the budget year, he said.
For the most part, the expenses are on track with projections and with revenues, Mr. Lyons said. “If we ended the year right now, we’d be running at a surplus,” Mr. Lyons said. He added that this is typical for the City, because season expenditures – such as summer employment costs – do not usually come due until September. “We are short in the fall, as we wait for the second installment of property taxes,” he said.
Increased expenses came from personnel costs, Mr. Lyons said: workmen’s compensation, overtime for police and fire personnel, potential liabilities and unemployment insurance for employees laid off in the last few months.
Mr. Lyons said the City had retained its Aaa bond rating from both Moody’s and Fitch’s. the City’s unfunded pension liabilities – nearly $180 million – still cause concern, he said, but added the rating services “must think we have it under control.”