By 1808Delaware
Delaware City Council’s Finance Committee met on Wednesday afternoon to consider various items related to city monies.
Finance Director Justin Nahvi shared the June Financial Report with Committee members, which showed that as of June 15, income tax revenue was down about $1.3 million. This rebounded in July, as Nahvi later pointed out.
In looking a fund breakdowns, all four enterprise funds are relatively stable compared to 2019, he shared. As of the end of June, the City had $9.39 million on hand, and all accounts are reconciled as of that date.
Monthly review of the “Budget Gauge” showed that based on tax receipts and also lower operating costs due to COVID-19-related reductions in departmental expenditures, the “Budget Restraint” status continues to be the best fit.
As of Wednesday, Nahvi said, income tax revenue for July alone was $3.83 million, in large part due to the extended filing deadline. This compares to last July which saw revenue of $2.01 million, With these numbers, and subject to changes in health guidelines, the Finance Department is projecting flat income tax revenue in 2021, with an overall 3% estimated decline in the General Fund, Fire/EMS Fund, and Recreation Center Fund.
City Manager Tom Homan joined Nahvi in looking at the 2021 budget creation process, which has already begun. The goal is a “…more methodical schedule,” Homan shared, and Nahvi said that the earlier start “Gives us plenty of time to get everything together, have all the public hearings, meetings, and get it adopted before Thanksgiving.”
The last item on the schedule is the anticipated date for the budget’s Third Reading, which is set for November 23.
