City expecting budget shortfall

Unless the city of Watertown experiences an economic about-face in five months, its administrators will have to rely on a number of spending freezes, fund balance reserves and savings from vacant positions to balance this fiscal year's budget.

City Manager Mary M. Corriveau has projected that sputtering revenues will leave the city in a $223,842 shortfall by June 30, the last day of the city's fiscal year.

"In terms of our state aid, we know we can't take that to the bank because we know we're not going to get it," Mrs. Corriveau said.

The city was projected to receive $5.1 million this year from the state's Aid and Incentives to Municipalities program. The city likely will miss out on $101,805 of that money because of cutbacks proposed by Gov. David A. Paterson, Mrs. Corriveau said.

The City Council gave its informal approval Monday night to maintain $182,814 in spending freezes, keep four administrative positions vacant for the time being and appropriate $96,992 from the general fund rainy day account to balance the current budget.

"We're not going to take out the blow torch and thaw those freezes until we see how things look in April," Mrs. Corriveau said.

The city has about $9 million in fund balance, she said.

The council is expected to adopt the budget amendments at its next meeting to account for changes in spending and revenues.

The city does plan to save $76,750 this fiscal year for salaries of rank-and-file police and fire department employees. The budget had earmarked $377,000 for the contracts, which were negotiated last year by the city.

Also at the next meeting, the council members will have to decide whether to include the reconstruction of Breen Avenue in the 2010-11 budget.

The council members at the work session Monday — Councilwoman Roxanne M. Burns was absent — were lukewarm on the project. It will take a four-fifths vote to pass a bonding ordinance to fund the project.

Councilmen Jeffrey M. Smith and Joseph M. Butler Jr. said the project should be included in the upcoming budget, while Mayor Jeffrey E. Graham and Councilwoman Teresa R. Macaluso said they needed more time to consider their decision.

"There are probably a dozen other streets that are traveled on more or less that are in similar shape," Mr. Graham said. "Central Street would be one of them."

Breen Avenue was listed in the 2001-02 budget as a $260,000 project to replace sidewalks and resurface the street. Rebuilding the street now is expected to cost $2 million.

The council also will have to transfer $145,000 from its sewer fund balance to pay for equipment purchases.