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City budget deficit grows slightly during first half of fiscal year

Submitted by on February 7, 2020 – 12:30 amNo Comment

The City of Alpena’s estimated general fund budget deficit grew slightly during the second quarter of the fiscal year that started July 1.

During a budget update this week, clerk, treasurer and finance director Anna Soik told the municipal council the estimated budget shortfall stood at approximately $94,000, an increase of about $43,000 from the first quarter.

Soik attributes much of the shortage to the demolition of the bathrooms on Harbor Drive and the design of new bathrooms for Bay View Park.

The city started the fiscal year with an estimated general fund budget deficit of $280,500. That estimate has grown to nearly $375,000. Total revenues were at approximately 61 percent of budget at the end of the second quarter. Expenses were at 51 percent.

“I don’t foresee any major issues in the coming months and we will do our best to control expenditures and not dip into the fund balance as originally budgeted for the fiscal year,” Soik said.

A year end finacial audit for the 2018-19 fiscal year was unveiled in January and showed the city’s general fund had grown to approximately $2.75 million as of June 30, 2019.