The City Council has more money to spend this year than expected.
City Manager Ken Frank gave the council the good news Tuesday in his annual midyear budget update. The final audit of the fiscal year ended June 2006 showed higher revenues and lower expenditures than anticipated.
"In short, everything looks pretty good," Frank said.
The unexpected revenues came as a result of the city's vibrant economy in the 2005-06 fiscal year, coupled with economies at city hall, Frank reported.
Most city departments — fire, community development, public works, community service and the city attorney's office — finished up the fiscal year under budget, with the police department significantly under budget because it couldn't find new officers to hire.
Revenues markedly above projections included sales tax, interest earnings, state-mandated reimbursements of claims not paid when the state was broke, property taxes in lieu of vehicle fees and construction processing fees — as the issuance of building permits reached a zenith last year, Frank said, as did supplemental property taxes.
Never one to allow the council's financial euphoria to remain unchecked, Frank warned that property transfers had dropped — reducing property tax expectations for this fiscal year — and new building projects have slowed in recent months.
Windfall spent
The council voted unanimously to modify the 2006-07 budget to reflect the audited fund balances and spend the windfall as recommended by Frank.
"We have six or eight recommendations for spending the money — a couple of them very substantial," Frank said.
He recommended the council set aside $1 million to pay for the extra employee pay period that will occur next year. It catches up with the city every 14 years.
Other appropriation recommendations:
