Estimates have city surplus growing by $5.2 million
With revenues greater than projected and expenses less than budgeted, a preliminary audit for the fiscal year ending June 30 show an estimated surplus of $6.7 million, Mayor Scott Avedisian announced Monday.
After budgetary adjustments that surplus is projected to increase the city’s unassigned fund balance by $5.2 million, which is now $18.5 million, to $23.7 million.
According to a release issued Monday, revenues for the last fiscal year are estimated to exceed the final budget by $5.87 million and expenditures are estimated to fall below budget by $825,324, said Finance Director Ernest Zmyslinski.
It is anticipated, however, that the budgetary surplus will be reduced by an increase in the City’s year-end reserves. The City will reserve an additional $200,000 to cover an increase in outstanding year-end encumbrances - the cost of goods and services ordered, but not received, prior to June 30, 2017. Also, in accordance with the City’s enacted FY18 operating budget, an additional $1.3 million will be reserved at year-end and subsequently transferred to revenue as defined in the budgetary plan.
Since the Warwick School Department audit has not been completed, the City’s preliminary audit projects a balanced budget for them.
It is important to note that the figures are only estimates at this time and may change in the final audited statements.