Auditor projects $400,000 pending deficit

The city of Hillsboro is facing a deficit of more than $400,000 for fiscal year 2011, according to city auditor Gary Lewis. 

Lewis reported to the Hillsboro City Council during their regular meeting April 12 that despite a revenue increase in several funds, a budget deficit is projected.

"At the request of the president of council (Lee Koogler), be advised that I have prepared a preliminary forecast for fiscal year 2011," Lewis said. "Note that if appropriations remain at 2010 levels, if revenue remains the same as forecast for 2010 with the exception that revenues are increased in ambulance collection, and fire contracts by a total of $130,000. Taking away $250,000 transfer from TIF (tax increment finance) to the general fund, which is no longer available, and lowering the carryover encumbrances to just $50,000, increasing the carryover balance to $100,000 from the original projected amount of $2,800, the result is a projected budget deficit of over $400,000."

Koogler asked that finance committee chairperson Peter Pence conduct a meeting, "and start reviewing things for next year so we can see what position we believe we are going to be in and what we need to do."

Hillsboro Mayor Dick Zink noted to council that is it essential that the department heads be a part of the process of what gets cut from the budget. 

"I know Gary (Lewis) has already passed out his, more or less, questionnaire on what the department heads are going to need for next year," Zink said. "The department heads are going to turn in that request to the administration. They will be looking it over and then we'll sit down with Mr. Lewis and decide if something has to come out of these requests that they are asking. We will decide at that time what to take out using the input from the department heads. That way it will probably save some confusion, because naturally everybody asked for what they think they can get. Well, if they don't have the money to give to them, we need to know what to take out that is going to hurt them the least. I don't think that Gary or myself, or Ralph (Holt, city safety and service director) can do that without the input of the department heads." 

Koogler said that everyone needs to work together to see that the budget is reduced and a deficit is avoided. 

"I am sure Mr. Lewis and the finance committee will appreciate that, and we'll keep moving forward on the issue."

Council voted to accept the auditor's report without further comment.