HdG mayor says city stayed financially 'stuck' through fiscal year 2011

Havre de Grace Mayor Wayne Dougherty told the city council Monday the economy kept the city financially "stuck" throughout fiscal year 2011, with the water and sewer fund suffering the most.

That fund, which has a $485,000 deficit, has recovered half of the loss from the previous fiscal year, Dougherty said in his budget report to the council, while the city has only received applications for 55 percent of the new connections it expected.

"Restoring the financial health of this fund continues to be my greatest concern," he said.

Demand for water and sewer service was 21 million gallons higher than a year ago, but less than the 36 million gallons expected. The fund therefore experienced a $60,000 operating loss for the year, much less than the $1.2 million operating loss from fiscal year 2010.

"The city is faced with substantial debt service requirements for many years as a result of having to finance the recent improvements to our water and sewer infrastructure," he said.

The marina fund became profitable again in 2011 and has a $255,000 fund balance, he said.

For the general fund, which ended at $3.1 million at the end of the year, the city exceeded its revenue targets by $915,000 but also faced the first fiscal year under the triennial state reassessment program that resulted in a much lower property tax base.

Revenues therefore declined by $940,000 from fiscal year 2010.

Operating expenses ended up being $520,000 less than budgeted, and capital project spending was $200,000 less than authorized by the budget.

The marina fund operated at a $60,000 surplus, and marina operations exceeded anticipated results by $15,000 for the year.

New signals

Dougherty also announced the State Highway Administration is moving forward with pedestrian improvements at Lewis Lane and Route 40.

In a letter sent to the mayor Oct. 13, David Peake, metropolitan district engineer for Baltimore and Harford counties, wrote that pedestrian signals and countdown signals will be added to the intersection.

"We will follow up with you by the end of the year with a time frame when we anticipate this improvement will be completed," Peake wrote.

Dougherty had been working with SHA regarding concerns over traffic safety at Lewis Lane.

Sustainability tabled

A resolution to have Havre de Grace take part in the Sustainable Maryland Municipal Certification Program was tabled Monday by Councilwoman Barbara Wagner.

She said she was unhappy with the proposed makeup of a sustainability committee, which would include six people from the city staff and three residents.

"This composition does not suggest to me a citizen-driven initiative but more a government-centered one," she said. "A government-centric initiative was really not the intention."

In general, Wagner said, the certification program is a good idea that would benefit the city in many ways.w