If the budget process is any indication, the “system breakdown” relating to Branson’s financial caution light, as explained by City Administrator Dean Kruithof at a meeting on Sep. 7, appears to be well along the way to repair. After months of dedicated effort by the city of Branson’s staff, its financial consultants and advisors, elected officials, and its Capital Improvements and Budget and Finance Committees the city’s budget for 2009 will be presented to the Board of Aldermen and Public for review and comment at the boards Oct. 28 meeting.
A preview of that budget was presented by city Finance Director, Lori Helle, at a joint Work Session Meeting of the Board of Aldermen, Capital Improvements Committee, and Budget and Finance Committee held on Oct. 23. Just how much a work in progress and challenging the budget process is can be illustrated by the difference in the figures presented in just a few days time.
The tentative work budget for the General Fund, presented to the Budget and Finance Committee at its Oct. 15 meeting, for 2009 showed Budgeted Revenues of $15,440,350 and Budgeted Expenditures of $16,787,967 for a net deficit of $1,347,617 in the General Fund. As the budget process continued and was refined the net result presented in the Oct. 23 budget to be presented at the board’s Oct. 28 meeting showed Revenues of $19,377,890 and Budgeted Expenditures of $20,117,577. The projected net deficit of $739,687 in the Oct. 23 budget presented is about 45 percent less than was estimated just a few days earlier in the Oct. 15.
Helle explained that a large part of the difference between what was presented in the Oct. 15 estimated budget and the Oct. 23 budget had to do with the way revenues and expenses for the Branson Convention Center are reflected. She said, “We should have been receiving all of the revenues from the convention center instead of netting them with the expenditures.” The estimated amount of this revenue for 2009, totaling $3,821,610, is reflected as specific revenue line items under “Misc. Revenue” in the General Fund.
She also noted that the overall General fund Expenditures estimated for 2009 have decreased slightly from that projected for 2008. Helle also pointed out that the salaries for 2009 were budgeted with a 3 percent increase, health benefit costs have been budgeted at a 5 percent increase and that the retirement costs for city employees will increase the 2009 budget by about $178,000.
An examination of the Oct. 23 budget indicates the General Fund will have an ending Fund Balance of $6,002,028 down $2,640,686 from its beginning Fund Balance of $8,642,714. Kruithof has expressed concern about the recent trend of declining fund balances. Helle said the 2009 ending Fund Balance “will be the floor for future budgets.”
Furnished Courtesy of the Branson Daily Independent.
