Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Projections topic
No spam. Unsubscribe anytime.
OFS projects small 2024 surplus; council questions department overspending and revenue drivers
Summary
The Office of Financial Services told the Budget Committee 2024 projections show about a $2.0 million positive variance driven by higher-than-budgeted revenue and underspending across most departments, while police, fire, DSI and parks are projecting overruns tied mainly to staffing, overtime and contract changes.
Miss Mitchell and Director John McCarthy of the Office of Financial Services presented 2024 year‑end projections showing an approximate $2,000,000 positive net variance between spending and revenue. "We are projecting to almost exactly bridal even with a $2,000,000 projected positive variance between spending and revenue," Miss Mitchell said, clarifying it as a small surplus after accounting for departmental overspending and additional revenue.
McCarthy walked the council through key drivers: several departments (police, fire, parks, DSI and emergency management) are projecting overspend — largely for overtime, work‑comp and a shift to contracting for nuisance-abatement work — while most other departments are projected to come in under budget by roughly 3%. He said the general fund is expected to be close to balanced overall because a projected $6.7 million in overspending is offset by about $8.7 million in additional revenue, including higher pension aid, interest earnings and some permit and hotel‑tax receipts.
On the spending side McCarthy called out specific pressures: DSI is over due to a new contracting approach for nuisance abatement; Fire is projected over budget because of overtime and work‑comp costs (the proposed 2025 budget adds six firefighters and increases the workers' compensation budget); and Police is about 4.8% over this year, driven by vacancy-related overtime and a mid‑year increase in a body‑cam contract cost.
Councilmembers pressed OFS for more granular figures: several asked for department-level overtime breakdowns (regular pay, overtime, work comp) and for final 2023 closeout numbers; OFS committed to provide more detailed reports and said changes in state pension-aid funding and interest rates helped the revenue side.
Next steps: OFS will provide the council requested department-level overtime and revenue detail and final '23 closeout numbers for follow-up before the December 4 budget vote.
