The Auburn city government’s general fund was in the red nearly $900,000 at the end of FY2010, owing mostly to a large drop in city revenues. It is the third year in a row that the city’s general fund has seen red ink. In FY2009, the city was $630,000 in the red and in FY2008 it was $746,500 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.
Check your numbers
06/05/11 at 10:51 PM
Please check your numbers before printing something like this! The City of Auburn is on sound financial footing. Taking random numbers from a power point presentation to make a point is not good journalism. Perhaps the reporter should take some notes during the meeting rather than texting or staring off into space during the meeting. Susan Norman is greatly missed!
Mike Buffington, Publisher
06/06/11 at 07:57 AM
The numbers are accurate and are not random. Auburn has been spending more money than it has been taking in for 3 years, including last year. It has been using up reserves to balance the budget, but it cannot do that forever. We stand by the story.
Watchful Eye of Barrow
06/07/11 at 12:25 AM
It would be a lot more convincing if the two post on here that said the story is wrong and they are liars would say what is wrong. What numbers are incorrect? What facts did they give that are not true?