Yorkville finds surprise financial surplus
By Steve Lord email@example.com October 10, 2012 11:50PM
Updated: November 12, 2012 12:05PM
YORKVILLE — It has taken a while, but it appears the financial situation for the city of Yorkville is turning around a bit.
Officials said this week they ended the 2012 fiscal year with a general fund surplus almost twice what they expected, which means the city started the 2013 fiscal year with a fund balance of more than $1 million.
City officials had projected the 2012 budget year to end with a $763,882 surplus, which would cover a $271,900 budget deficit and leave the city with a fund balance on the plus side for the first time in three years.
But due to several factors that increased revenue, the city finished the 2012 fiscal year with about a $1.5 million surplus, leaving the city about a $1.2 million fund balance.
“So we exceeded what we thought the fund balance was going to be,” City Administrator Bart Olson told the City Council this week. Olson presented the numbers as part of the presentation of the city’s yearly audit.
What it means is the city has a bit more flexibility with budgeting for the coming year, although Olson said the city has other issues to deal with. One of those is the future of the REC Center, which the city may or may not purchase. Right now, one of the park and recreation funds dealing with the REC Center has a deficit.
“There are other fund deficits we have to do something about,” Olson said. “We have some decisions to make.”
The city’s general fund revenue sources have been decreasing since about 2007-08, and one of the reasons the surplus was higher than expected is that those revenue sources have begun to come back. Officials feared sales tax would decrease because of the closing of ProBuild, a large company with retail sales, during the year. Not only did sales tax hold, it was a little bit higher than the hoped for $2.5 million.