A special fund the city created in July to make up for lost revenue during the economic downtown was intended to last two-and-a-half years, but an unexpected decline in several revenue sources may completely tap the fund a year early.
City Finance Director Chris Lyons said he anticipated using $1.3 million from the $2.9 million Budget Stabilization Fund this fiscal year. He revealed last week that the city might need to use double that amount to shore up a shortfall in four revenue streams: half-cent sales tax, state revenue sharing, investment earnings and electric franchise fee (see box).
“It’s not possible that the $2.9 million will last two-and-a-half years,” Lyons said.
City Manager Bob Bartolotta anticipates the stabilization fund will run out of money by January 2010.
“We’ll be without a safety net then,” Bartolotta said.
But Lyons said he’s not worried about the financial situation when the fund runs dry, because the city maintains a $15 million balance in its general fund reserves, which go to such things as payroll and utilities.
“It’s not that risky,” Lyons said. “We still have a pretty sizable (general) fund balance.”
Currently 0 Responses
15 Cycle of Renewal
11:30 am - 1:30 pm
18 9th annual Leadership Breakfast honoring Nancy Detert and Teri Hansen
18 SMART PARENTS / SMART KIDS FREE SEMINAR
6:30 pm - 7:30 pm
19 American Business Women's Assocation-Sunset Chapter Monthly Meeting
6:00 pm - 8:00 pm
High Five Moments of the Week
The top five sports moments of the week.
A climb for heroes
Joining with firemen from Central Florida, the Suncoast FOOLS firefighters gathered Saturday, at Plymouth Harbor, to pay homage to the fallen heroes of Sept. 11.
Student's art gains national exposure
ART.WRITE.NOW.DC, a year-long exhibit featuring works of art and writing and hosted in the lobby of the Lyndon Baines Johnson Department of Education Building in Washington, D.C., opens Sept. 19.