$1.7 Million Shortfall – Million-dollar shortfall projected in Quincy’s budget

A $1.7 million shortfall was projected in Quincy’s current budget, but the city’s finance department says it has developed strategies to prevent that deficit.

Finance Director Marcia Carty said she’s looked at what the city has earned so far in this fiscal year, and what she projects the city will earn for the rest of the year.

The city had an estimated $37 million budget this year.

“If we continue as we’re going, we’re projecting that we’re going to spend about $38 million, so when you compare the $38 million to the $37 million it means we need to cut expenses or generate more revenue - one or the other - in order to not have that shortfall,” Carty told the commissioners during a special meeting held on May 30.

Carty said the primary strategies are to transfer funds that were initially budgeted to be set aside and reserved for the surcharge collections, and to transfer funds into divisions from contractual services and equipment.

“So instead of us buying equipment or instead of us putting money in a reserve, we now need the money to operate the city,” Carty said.

She said she also anticipates collecting funds awarded by the Federal Emergency Management Agency (FEMA).

“The FEMA consultant did let us know that we have potentially $1 million – more than a million – that’s sitting in reimbursements due to the City of Quincy,” Carty added.

Carty said her department noticed a downward trend in the pool cash accounts while monitoring monthly receipts and disbursements.

Carty said she noticed the cash was being reduced by $300,000 a month over a six-month period.

“However, in the month of April we did notice that it’s turning around to the tune of $72,000,” Carty said.

Carty recommended that the commission approve budget transfers that equate to $1,398,736 from various different line items.

Commissioner Angela Grant Sapp asked Carty how much more money will the city collect from the Hurricane Michael Surcharge before it ends in January 2023.

Carty said she anticipates the city will receive $800,000 more from the Hurricane Michael surcharge before it sunsets.

Commissioner Freida Bass-Prieto suggested transferring $10,000 out of the junior commission fund instead of from the electrical hardening budget.

“I’d rather have money for hardening our systems for storms and replacing poles if they break, get hit, or get blown over,” Bass-Prieto said.

Carty said she must start making budget transfers, because by law she can’t issue financial statements with negative balances.

Carty also emphasized that she will be making budget transfers, not transferring actual cash.

“Instead of us spending $344,000 in capital equipment as you have originally budgeted, we’re not going to do that,” Carty explained. “We’re instead going to move that money down to cover the anticipated increase in purchased gas and electric.”

The commissioners unanimously voted, 4-0 to make the budget transfers.

Commissioner Ronte Harris was absent from the meeting.

Erin Hill - erin@gadsdencountytimes.com

$1.7 Million Shortfall – Million-dollar shortfall projected in Quincy’s budget

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$1.7 Million Shortfall – Million-dollar shortfall projected in Quincy’s budget

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Gadsden high schoolers produce award-winning newspaper

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