A week after approving its fiscal year 2012 budget, the Hurlock Town Council will have to make several future budget amendments to balance it after town officials discovered several revenue sources will be less than anticipated.
On June 30, the council approved a balanced FY12 budget at $4,787,984 with a 4-1 vote. Council President Charles Cephas voted against the budget. The FY12 budget is about $200,000 more than the town's FY11 budget.
Town Clerk and Treasurer Kathy Clough said after speaking with town auditors after the start of the new fiscal year, officials determined projected industrial revenues of $1,601,926 will be about $110,000 less than anticipated. Clough said the drop in revenue is associated with businesses paying corporate taxes this year rather than residential taxes last year.
Hurlock did not release its FY12 budget until six days after the new fiscal year began. Clough said a computer error caused the delay.
Clough said businesses switching from residential taxes to corporate taxes was anticipated to increase town revenue about $200,000, but will actually be about $90,000 extra in revenue.
"With revenues anticipated to be less than expected, we will have to go back and make some more cuts to make sure everything balances out," Clough said. "We have some places we are looking at that won't affect the service the town provides when we do some trimming. We are confident everything will work out."
1 comment:
What is Clough talking about when he says businesses are switching from residential taxes to corporate taxes?
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