An improving revenue picture and money left over from last year may help Gwinnett County eliminate the remainder of an $18 million budget deficit.
The County Commission Tuesday will consider approving a revised revenue plan that would add nearly $1.7 million to its general fund budget. It also will consider creating a “budget stabilization reserve” with money that wasn’t spent in 2010 to help balance the general fund over the next three years.
Those moves, combined with other revenue and spending measures approved in recent weeks, would eliminate the $18 million deficit in the county’s general fund budget, which pays for police and fire protection and other basic services.
The commissioners have been focused on eliminating the deficit since they approved a $448.6 million general fund in January. They have pledged to eliminate the deficit by the end of this month.
In recent weeks they have chipped away at the deficit by cutting spending and raising revenue.
On the spending side, the commissioners have required county employees to take four unpaid holidays, required vacant jobs to remain unfilled for 90 days, eliminated vacant positions and reduced general fund payments to fleet equipment and other funds.
They also have raised revenue by shifting a .23 mill property tax levy from debt payments to the general fund, raising emergency medical transport fees and selling right of way to the state.
On Tuesday the commissioners will consider a revised revenue forecast that would further reduce the deficit. Most of the new money -- about $1.4 million -- comes from revised estimates of how much money higher court fees implemented last year will generate in 2011. The county also expects to earn an extra $249,339 from better returns on investments.
The additional revenue, combined with the previous measures, would reduce the projected general fund deficit to about $805,000.
The commissioners also will consider creating a budget stabilization reserve of $9 million to $10 million. The money will come from unreserved 2010 fund balances and one-time proceeds from a 2009 property tax increase.
In a memo to commissioners, Gwinnett County Chief Financial Officer Aaron Bovos said general fund receipts came it at 100.6 percent of budget in 2010, while spending came in at 94.8 percent.
Bovos said the county can draw up to $3 million -- or one-third of the original balance -- per year from the reserve to stabilize the general fund budget through 2013.
Bovos called the budget stabilization reserve “a short-term bridge to a fully funded budget.”
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