Rye’s Finances in ‘Excellent’ Shape, Mayor Says

 State of Financial Operations:  Year-end 2012
As the economy begins to turn around, the conservative fiscal management exercised by the City throughout the recession has put the City in excellent financial position for the coming years.   

The year-end results for 2012 are as follows:  General fund revenues exceeded general fund operating expenditures by $1,824,000 -- mostly attributed to non-property tax revenues exceeding budget.  Revenues realized for the year ended December 31, 2012 exceeded the amount budgeted by $2,173,000.  This included sales and use tax revenues, which were $311,000 greater than budgeted.   

The Building Department had an exceptional year with building permit revenues $521,000 greater than budgeted.  Mortgage tax revenues were up $163,000, and recreation program fees were $100,000 above budget.     

Police Overtime reimbursements were $115,000 more than budgeted which helped offset increased police overtime costs.  State revenue sharing remained flat in 2012 compared to 2011, but had been projected to decline.    On the expense side, actual expenditures realized for the year ended December 31, 2012 were $400,430 less than anticipated in the final budget.  Savings were generated across a variety of areas of operations.   

The City continued to restore its unassigned fund balance -- now to a healthy $4,982,000 or 16.4% of 2012 General Fund’s appropriations.  However, the increased allocation in labor costs for retirement and healthcare benefits remains a concern.   

The State Attorney General projects possibly another sizable increase in retirement contributions for 2014 to continue to make up for the losses in 2008 and 2009 in the retirement system which on average, 21% of salaries is contributed statewide annually