Collegedale reports $251,000 deficit

By Mike O'Neal

Staff Writer

Collegedale ended fiscal year 2007 with a budget shortfall of about $251,000, in line with officials predictions, according to Ted Rogers.

"It was a rough budget to inherit," said Mr. Roger, who was hired in November as city manager. "That figure is actually better than I expected."

Commissioner Larry Hanson said one reason he sought election to the commission in March was because he was concerned about unstable city management.

"That and the financial situation had deteriorated," Mr. Hanson said.

Mr. Rogers told the five-member City Commission during discussion in May of the fiscal year 2008 budget that he expected a revenue shortfall of about $500,000 for the fiscal year that ended June 30.

"We put the brakes on hard," Mr. Rogers said regarding spending during the second half of the year. "The thing that hurt most was that revenue was not projected more accurately. We'd have been fine, otherwise."

The city ended the year spending 89 percent of the amount budgeted, but collected only 84 percent of projected revenue for the fiscal year, which ran from July 1, 2006, through June 30, 2007.

"We came in under budget but were way under on revenue," he said.

City officials said the revenue shortfall was worsened by several unforeseen circumstances:

* An accounting error that neglected to provide about $400,000 for employee health insurance.

* A debt service payment of about $70,000 that fell midyear.

* Totally revamping the telephone system and the emergency replacement of the heating and air conditioning system for City Hall.

Those items pushed the city into the red, Mr. Rogers said.

Mayor John Turner had said increased sales tax revenue from new restaurants and a Wal-Mart would help refill the city coffers and that has been the case.

Budget projections for the current year call for about $100,000 per month to be generated by new businesses, but, since July, those taxes have contributed about $118,000 per month to the city's general fund, Mr. Rogers said.

E-mail Mike O'Neal at moneal@timesfreepress.com