LANCASTER — The City of Lancaster had a $1.6 million reduction in revenue and a $7.6 million increase in expenditures and is in good fiscal shape overall, according to a mid-year budget adjustment presentation by Finance Director George Harris.
The City Council held a public hearing at its March 14 meeting on a proposed amendment to the adopted budget and Capital Improvement Program.
The mid-year budget adjustment is a review of the first six months of activity for Fiscal Year 2022-23. Citywide, all funds, including the General Fund, Lancaster Choice Energy and special revenue funds, total about $450 million in expenditures compared to approximately $442 million in revenue.
For the General Fund, the city will see increased revenue of about $2.6 million due to increased development activity. That takes the General Fund revenue from about $147.7 million to $150.3 million. The General Fund expenditures increased by a recommended $4.2 million from $146.1 million to $150.3 million.
Of that total, approximately $109 million covers operating costs with the remainder for Lancaster’s Capital Improvement Program. The city directed approximately $31 million to capital projects thanks to money from the Cares Act, American Rescue Plan Act and Measure LC revenue.
“What we did with that money is put it directly into one-time projects,” Harris said.
He said most cities are not able to fund capital projects from their general fund.
The city has about $48 million in reserves, including an $8 million surplus.
“At this point, at mid-year, we’re doing pretty good,” Harris said. “There are no major adjustments as to projects being added or deleted at this time.”
Councilman Darrell Dorris asked about the addition of the city’s hybrid policing program.
“So even with the adding of the new hybrid policing department we’re still flush, we’re doing well,” he said.
Harris said they can afford the hybrid policing model.
The City Council voted 4-0 to approve the amendment to the adopted budget and Capital Improvement Program for Fiscal Year 2022-23, with Mayor R. Rex Parris absent.
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