Audited Financial Statements for Fiscal Year 2016 Released: Surplus to go to Deficit Reduction
The City ended 2016 with a surplus of $874,000, which will be applied to reduce the cumulative general fund deficit. In addition, the City was able to pay-down $400,000 towards a deficit of $1.2 Million in its separate Transit Fund, reducing that deficit to approximately $800,000. The consolidation of the City’s bus system with Dutchess County Transit, which is projected to save taxpayers between $300,000 and $500,000 annually, will lead to the elimination of the Transit Fund as the remaining transit deficit is paid-down.
The favorable results in 2016 have reduced the general fund deficit to $11.9 Million. At its high, just before Mayor Rolison took office, it stood at $13.1 Million.
Late in 2016, as the 2017 budget was being crafted, the administration also made the decision to include a specific budgeted amount for deficit reduction, something which had never been done before. Although the amount, $225,000, was small in comparison to the deficit, it sent a strong message to City stakeholders and other interested parties that the City is serious about aggressively attacking the deficit.
At this point, as we enter the fourth quarter of 2017, management projects a 2017 surplus of about $569,000. That number is exclusive of the budgeted $225,000 which has already been earmarked to be applied against the deficit. While these are preliminary numbers, the City’s deficit could be reduced by a further $794,000 when the 2017 results are finalized.