September 29, 2007 Contact: Sue Baker
For Immediate Release 738-2000
Preliminary audit shows surplus, Avedisian says
WARWICK – Mayor Scott Avedisian announced today that a preliminary audit of the city’s FY07 finances shows that for the eighth consecutive year the city has posted a surplus.
The unaudited figures show that revenues exceed expectations by nearly $695,120 million, due to higher than expected collections in the areas of property taxes, interest earnings on taxes and investments, according to Finance Director Ernest Zmyslinski. Expenditures fell below the revised budget by approximately $705,247.
Gross revenues exceeded expenditures by $1,400,367 – an amount offset by the city’s year-end encumbrance reserve of $652,486 by an increase in the legal reserve of $8,641 and by the School department’s estimated deficit of $672,947. When these are removed, the net operating increase is $66,293. Had the city not reserved the amount of the School Department deficit, the city’s operating increase would have been $739,240, Avedisian said.
“Overall, we are very pleased with these preliminary figures, particularly when you take into consideration the fact that the city had to allocate an additional $5 million to the School Committee so it could fund the teachers’ contract,” he said. “Again, I must compliment the diligent efforts of our finance director for his careful stewardship of city funds, as well as our municipal department directors, who continually rise to the challenge of providing quality services and programs while administering very tight annual budgets.”
-- 30 --