PATTERSON — The Patterson City Council met in special session to amend its fiscal year 2012 budget by nearly $1 million in overspending.
The bulk of that money is related to mold remediation and creation of the police department training center, according to City Clerk Pam Washington.
While the city was budgeted to finish the year $450,924 in the black, it finished $524,929 in the red for a total of $975,853 off budget.
The city’s insurance plan will not reimburse for costs of mold remediation, rental of the building used as a temporary city hall or rebuilding of the portions of city hall that had to be removed. This totaled about $300,000.
These expenditures were made under an emergency expenditure order.
Others, however, were not.
The police department exceeded its budget by $276,557, largely in the building and equipping of its new training center. The money comes from law enforcement tax dollars, Washington explained.
Also accounting for the overages are:
—$150,000 to build the new mechanical shop in preparation for the new water plant.
—Group insurance increased 19 percent.
—Gasoline expenses increased 20 percent.
—Retirement expenses increased 9 percent.
—Costs to remodel what is now the Patterson Community Center to accommodate children and programs from its old status as a city hall were around $60,000.
State law requires municipalities to deviate no more than 5 percent from its budget. If the unexpected arises, the city council can amend its budget. Patterson has not done that this fiscal year.
On the revenue side, there was a net loss of $20,174 from budget predictions. Sales tax collections were up $53,566 over budget projections. Also up were fines and forfeits ($107,793) and licenses and permits ($32,098). However, losses were seen in charges for services such as utilities as the area did not see a cold winter ($166,957) and intergovernmental revenues ($58,424).
In other action Thursday, the council introduced its 2013 budget proposing $6.68 million in revenues, $6.8 million in expenditures for a deficiency of $124,710.
Unbalanced budgets can be legal if the public entity has a fund balance to cover the deficiency. In this case, the city will begin the new fiscal year with a balance of nearly $16.1 million.
Expenditures for the year include:
—General government, $784,567.
—Police, $1.76 million; fire, $46,316.
—Highways and streets, $645,401.
—Capital outlay, $309,311.
In other action, the council:
—Introduced an ordinance for its capital improvement budget totaling $337,000 which includes $265,000 for the police department, $47,000 for the utility department, $5,000 for the recreation department and $20,000 for general administration needs.
—Agreed to engage Kolder, Champagne, Slaven & Company to audit the city for the year.
—Changed the regular meeting date from July 3 to July 10 to accommodate the Independence Day holiday.
—Approved a permit for a Pre-July 4th Celebration to be held July 3, 6-10 p.m. The mayor, council and chief of police will host a block party on Park Street between the corners of Main and Third streets.
Councilmen John Rentrop and Joe C. Russo III were absent Thursday.