City Finances: So Far, So Good For First Quarter, Officials Say

Three months into the new fiscal year, the city's budget is on track—even if that means on track to continue at a deficit, as the bleak economic situation continues.

At Tuesday's City Council meeting, City Manager Graham Mitchell gave the Council the first quarter report for the fiscal year which began July 1.

The city's general reserves are 8 percent higher than anticipated, Mitchell said, which after several years of cutbacks was welcome news.

Revenue for the current fiscal year (which runs from July 1, 2010 to June 30, 2011) is projected to be about $200,000 less than last year, Mitchell said. However, expenditures should be down about $210,000, resulting in a slight gain.

"So, I think we're on target," Mitchell said. "There are no huge red flags that we encountered.

"We do not think there's anything that would cause alarm," Mitchell said. "We are currently on track to operate in the deficit mode we had projected."

The next quarterly report, due in December, will give a better picture of the city's financial situation this fiscal year, he added.