Sheridan manager provides budget overview
In addition to the general fund, which finances ongoing city operations, the budget features dedicated sewer, street and water funds. Sheridan said the other funds were on track as of Dec. 31, which marks the mid-point in the city’s 2012-13 fiscal year, but the water fund was not.
“Our main source of revenue is water user fees, and that is at 43.4 percent as of Dec. 31,” Sheridan said.
He continued, “The material and service items are at 61.5 percent. This is due to the amount of repairs we have had to do on the distribution system.”
Sheridan said funds will need to be moved from contingency to cover expenses.
The water fund includes $307,000 for contingencies, which Sheridan termed insufficient.
“That doesn’t give us a good rainy day fund to fix things,” he said.
The general fund includes $169,922 for contingencies, the sewer fund more than $1.5 million and the street fund $405,000.
“The general fund does not have a large revenue source and it must be closely managed,” Sheridan said. “The sewer fund is financially sound, but major infrastructure upgrades loom. The street fund does not generate enough revenue to improve and maintain our streets, and large projects need to be carefully considered.”
Overall, Sheridan said, the city is taking in less revenue than it has in the recent past, so needs to monitor spending closely.
“These are typical tough times, but not unbearable,” he said. Fortunately, he said, “This council and councils in the past have been very frugal about how money is spent.”
Sheridan also distributed to the council a list of projects that could have a significant impact on the city’s 2013-14 budget and those to follow. He outlined more than two dozen infrastructure needs.
The council is next scheduled to meet at 7 p.m. Monday, March 18, at city hall.