Cumberland Times-News

Latest news

February 12, 2013

City’s finances are improving, says audit, but a long way to go

Report: Deficit reduced by $800,000, $1.2M positive change

CUMBERLAND  — The city’s Comprehensive Annual Financial Report is showing some improvement in city finances, but there remains a long way to go, city officials said Tuesday.

Findings of the annual audit were presented at Tuesday’s city council meeting at City Hall by Joe Urban.

The city’s deficit was reduced by $800,000, and there was a $1.2 million in positive change in the fund balance, Urban said. The sewer income once again showed a shortfall, which is the reason sewer rates had to be increased last year, Urban said.

“A 1.2 million dollar savings can’t be overstated,” said Councilman David Kauffman, who congratulated city staff for their work.

Councilman Nick Scarpelli asked Urban about the status of the cash reserves and future goals.

Urban said, “We’re trying to build the reserves,” but something of a decline was expected because of fluctuations in tax revenue throughout the year.

Urban said that $2 million to $4 million “is a good reserve.”

The city has two more years to build reserves before debt payments will have to be increased by the city to pay for a restructured debt.

The city has been making moves in the past year to shore up finances by continuing to look for large savings by refinancing some of the $18 million in debt the city carries.

A recent refinancing of $1.7 million in debt from a 6 percent rate to 4.7 percent is expected to save more than $400,000, according to the city.

Revenues are looking to be gained by the city from its new employee health care package, which goes live on March 1.

Property taxes still remain the city’s largest source of income, at about $10 million annually. Water supply adds $5 million and sewer charges about $6.8 million each year to the city’s coffers.

In other matters, council approved an order accepting  a proposal from the EADS Group for professional services associated with the demolition of buildings on the Memorial Hospital Campus in an amount not to exceed $175,000.

Because the city has worked with them on the campus before the company “has a unique insight and perspective,” City Administrator Jeff Rhodes said.

“Demolition sequencing is critical. It’s something we need to get right the first time,” he said.

Contact Matthew Bieniek at mbieniek@times-news.com. Staff writer Greg Larry contributed to this story.   

 

1
Text Only
Latest news
Fighting Blocks Access to Ukraine Crash Site Dangerous Bacteria Kills One in Florida Workers Dig for Survivors After India Landslide Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN Raw: Deadly Landslide Hits Indian Village Obama Chides House GOP for Pursuing Lawsuit New Bill Aims to Curb Sexual Assault on Campus Russia Counts Cost of New US, EU Sanctions 3Doodler Bring 3-D Printing to Your Hand Six PA Cops Indicted for Robbing Drug Dealers Britain Testing Driverless Cars on Roadways Raw: Thousands Flocking to German Crop Circle At Least 20 Chikungunya Cases in New Jersey Raw: Obama Eats Ribs in Kansas City In Virginia, the Rise of a New Space Coast Raw: Otters Enjoy Water Slides at Japan Zoo NCAA Settles Head-injury Suit, Will Change Rules Raw: Amphibious Landing Practice in Hawaii
Facebook
Must Read
House Ads
NDN Video
Heartwarming 'Batkid Begins' Documentary is Tear-Jerker Orlando Bloom 'Takes a Swing' at Justin Bieber In Ibiza Pitch Invading Morons Cause Chaos - @TheBuzzeronFOX Sadie Doesn't Want Her Brother to Grow Up "Maxim" Hotness! See Jessica Alba's Sizzling Spread Two women barely avoid being hit by train Broken Water Main Floods UCLA Orlando Bloom and Justin Bieber Reportedly Came To Blows In Ibiza Meet the Man Behind Dumb Starbucks Chris Pratt Adorably Surprises Kids at a 'Guardians of the Galaxy' Screening NOW TRENDING: Peyton Manning dancing at practice "The Bachelorette" Makes Her Decision Thieves pick the wrong gas station to rob Golden Sisters on '50 Shades' trailer: 'Look At That Chest!' Staten Island Man's Emotional Dunk Over NYPD Car - @TheBuzzeronFOX GMA: Dog passes out from excitment to see owner Baseball Hall of Famers Inducted 'Hunger Games: Mockingjay Part 1' Sneak Peek Florida Keys Webcam Captures Turtles Hatching Morgan Freeman Sucks Down Helium on 'Tonight Show'
NDN Video
Heartwarming 'Batkid Begins' Documentary is Tear-Jerker Orlando Bloom 'Takes a Swing' at Justin Bieber In Ibiza Pitch Invading Morons Cause Chaos - @TheBuzzeronFOX Sadie Doesn't Want Her Brother to Grow Up "Maxim" Hotness! See Jessica Alba's Sizzling Spread Two women barely avoid being hit by train Broken Water Main Floods UCLA Orlando Bloom and Justin Bieber Reportedly Came To Blows In Ibiza Meet the Man Behind Dumb Starbucks Chris Pratt Adorably Surprises Kids at a 'Guardians of the Galaxy' Screening NOW TRENDING: Peyton Manning dancing at practice "The Bachelorette" Makes Her Decision Thieves pick the wrong gas station to rob Golden Sisters on '50 Shades' trailer: 'Look At That Chest!' Staten Island Man's Emotional Dunk Over NYPD Car - @TheBuzzeronFOX GMA: Dog passes out from excitment to see owner Baseball Hall of Famers Inducted 'Hunger Games: Mockingjay Part 1' Sneak Peek Florida Keys Webcam Captures Turtles Hatching Morgan Freeman Sucks Down Helium on 'Tonight Show'