Auburn ends FY2010 in the red

The city has been able to absorb the shortfalls since it had built up a huge pool of reserves in 2007.

The city took in $2.6 million in revenues during FY2010, but spent $3.2 million. It also transferred another $340,800 from the general fund to the city’s capital projects fund.

Auburn had originally budgeted $3.5 million in projected revenues, but a drop in tax income along with lower other income sources, hit the city for nearly $900,000 less than projected. One of the main shortfalls was in sales tax revenue which was anticipated to be $1.38 million, but which actually garnered only $977,000 in revenue for the year.

The city did cut spending in FY2010 except for public safety, which saw expenses go up over what had been budgeted. Public safety, most the city police department, accounted for 50 percent of the city’s general fund expenses in FY2010.

The city used its reserves to cover the shortfall in FY2010 and at the end of the year, was still left with a healthy $1.9 million reserves balance in its general fund.

City administrator Ron Griffith presented the FY2010 report, completed by Hubert A. Brisoce CPA firm out of Winder, on May 19 to the mayor and council.

For the full story, see the June 1 issue of the Barrow Journal.