For the fifth year in a row, the City of Auburn is in the red. The town spent $253,000 more in FY2013 in its General Fund than it took in and again had to dip into its dwindling reserves to make ends meet, according to the recently released audit.
Since 2009, Auburn has spent a combined $2.8 million more than it has gotten in General Fund revenues. At the end of FY2008, the city had accumulated $3.4 million in General Fund reserves. At the end of FY2013, it only had $627,500 of that left due to the five-year string of losses.
The largest impact on Auburn’s FY2013 audit results was a massive shortfall in projected income. The city’s General Fund income last year was $2.52 million, $328,200 less than projected.
Most of that was due to miscalculation by city leaders who at that time believed the town would get a large apartment complex that would generate a lot of income. The town projected it would get $137,800 in licenses and permit fees, but only took in $34,700. Town officials also projected the city would get $195,000 in miscellaneous income, but only got $461.
City officials also overestimated how much sales taxes, franchise taxes and interest income Auburn would receive.
For the full story, see the April 23 issue of the Barrow Journal.