The city of Lemon Grove expects to end the fiscal year with a little extra money in its coffers, according to a draft of the mid-year budget.
The proposed 2012-13 mid-year budgets for the general fund and general reserve fund includes a year-end balance of $2.42 million, around $146,200 more than what was listed in the adopted budgets approved last June.
The staff report, which was presented to the City Council last week, reflects a $105,900 increase in revenues in the general fund.
City Manager Graham Mitchell said the increased revenues are mostly due to the dissolution of Lemon Grove’s Redevelopment Agency. Also contributing to the increase was a slight bump in sales tax, he said.
Property tax has remained relatively flat, he added.
Expenditures in the general fund and general reserve fund are projected to be $380,300 less than budgeted, according to the staff report.
Due to higher than expected starting balances, increased in overall revenues, and decreases in overall expenditures, the city’s general reserves grew from an anticipated $2.27 million to around $2.42 million, according to staff.
Mitchell said the goal is a 25 percent reserve. The city is at 19 percent, up from the anticipated 18 percent before, he said.
“Time is going to get us there,” he said. “We’ve sort of made all of the massive cuts we can make. We are not that far, 6 percent off from getting to that goal.”
Staff recommendations for expenditures include transferring $50,000 to the Workers Comp Self-Insured Fund to grow its balance to appropriate levels. Also recommended was transferring $10,000 to the Liability Fund to replenish it for 2012-13.
The staff has received input from the council members and plans to bring a budget back for formal adoption Feb. 19.