Havre de Grace water fund in the black after two months of fiscal year, marina fund posted a deficit

The City of Havre de Grace's general fund and water and sewer fund finished in the black for the first two months of fiscal 2017, but the marina fund ended with a $40,000 deficit, according to a report on city finances for the period July 1 to Aug. 31.The water and sewer fund, or Fund 9, is usually the most challenged of the city's operating budgets, as annual debt service payments on the $27 million the city borrowed to upgrade its wastewater treatment plant continue to be a drag, forcing city leaders to transfer money from general fund surpluses to cover Fund 9 deficits in past fiscal years.Mayor Bill Martin has been running an extensive campaign of promotions and events to bring more visitors – and prospective homebuyers – to Havre de Grace, so the city can gain more revenue from water and sewer hookups related to new housing construction and well as more prospective water and sewer users.Shortly after taking office in May 2015, Martin implemented a $25 quarterly surcharge on water and sewer bills, which will expire next summer unless the city council renews it. For the fiscal 2017 city budget that took effect July 1, water and sewer rates increased 10 percent.Fund 9 is in good shape after two months, with $873,000 in net operating income on $1.92 million in revenue and $1.05 million in expenses, according to a report on city financials presented by city Finance Director George DeHority at the Sept. 19 council meeting.Income from fees, including capital cost recovery fees charged to developers to connect to the municipal water and sewer systems, stood at $54,000 this year compared to $44,000 in the same period a year ago; however, the current budget anticipated $77,000 in fees.The mayor announced plans earlier this year to have all city properties run on solar power by the end of this year. DeHority noted using solar energy has already made a difference in water and sewer operating expenses.Operating expenses were $380,000, compared to $411,000 a year earlier, according to the report.&quot;We have gone solar, and we are getting a much better [energy] rate,&quot; DeHority said.Marina fundDespite the shortfall in the marina fund, the finance director said his is &quot;not too, too concerned&quot; and the situation should right itself during the remainder of the fiscal year.The fund had revenue of $98,000, compared to $139,000 in expenses during the period covered by DeHority's report. City officials projected $127,000 in total revenues and $121,000 in expenses.The marina, which is in Tydings Park, is owned and operated by the city government, with the majority of its revenue coming fuel sales, according to the report. Fuel sales were budgeted at $103,000 but produced only $78,000 in actual revenue.Slip rental fee collections for the to summer months were higher than budgeted, $14,000 versus $11,000, but miscellaneous revenue was just $6,000 compared to $13,000 budgeted.The marina fund also had a deficit during the same period in fiscal 2016, with $127,000 in revenue and $149,000 in expenses.&quot;It's not unusual,&quot; DeHority said, citing lower fuel sales as the primary culprit.&quot;The volume [of fuel sales] seems to be fine, but the prices have come down, and they're starting to rise back up again,&quot; DeHority said.DeHority noted the city purchases fuel in bulk, which creates &quot;a timing issue&quot; as prices change.&quot;It's very premature to make any kind of conclusion at this stage of the game for revenues,&quot; he said.General fundTotal spending in the July-August period was $188,000 below revenue, according to the report.The city spent $2.53 million, against total revenue of $2.72 million; however, spending was over budget by about $70,000, according to the report. The city spent $2.64 million in the same period of fiscal 2016 against revenue of $2.33 million.Taxes cover about three quarters of the general fund revenues, and $2.087 million, out of $2.716 million in first quarter total revenues, came from taxes, according to the report. Tax revenue increased from $1.88 million collected during the first quarter of fiscal 2016 and was slightly above what was budgeted this year.Capital expenses were down significantly – $415,000 was spent last year, compared to $63,000 this year.DeHority said the drop in capital expenses was related to the renovation of the Havre de Grace Opera House, which started last fiscal year. The project is in its second phase and there had been little activity between July and the end of August.DeHority said city revenues and expenses vary based on the season and the events happening. Councilman Randy Craig suggested future reports show &quot;year-over-year&quot; comparisons with seasonal fluctuations to &quot;recognize the work that the city staff does.&quot;Planning director departsPlanning Director Neal Mills, who worked for the city for about seven years, retired effective last Friday.Mills delivered his final director's report at the Sept. 19 council meeting. He did not make any announcements about planning department activities, but he expressed &quot;how much I really appreciate the opportunity to serve.&quot;&quot;It's been challenging, but rewarding as well,&quot; he said.City officials often call Mills &quot;Col. Mills,&quot; alluding to his prior service as a colonel in the Air Force.Martin read a letter from John Correri Jr., a former mayor and city councilman, who thanked Mills for working &quot;tirelessly&quot; and leaving Havre de Grace &quot;in a far better place.&quot;&quot;Col. Mills, thank you very much for your service to your country and the City of Havre de Grace,&quot; Correri wrote.City leaders and audience members gave Mills a standing ovation as he left the podium.

Havre de Grace water fund in the black after two months of fiscal year, marina fund posted a deficit

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