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WILKES-BARRE — The city’s general fund balance continued to grow in May to approximately $10.3 million, but payments due by the end of the year would erase it.
The draft financial report released Thursday listed $10.7 million still owed for pensions, debt service and repayment of the $3 million Tax Anticipation Note.
In April, the balance was $9.2 million. The most recent draft report showed an increase of more than $1 million.
The city is operating on a $47.1 million balanced budget. For the first five months of the year, revenues totalled $25.2 million compared to $14.8 million in expenses, according to the draft report.
Approximately half or $6.3 million of the $12.7 million budgeted for the earned income tax, the largest revenue source, was collected. The next largest revenue source, the property tax, had a higher collection rate of just over 90 percent or $10.5 million of the $11.7 million budgeted amount.
The city sought the help of the state and last year entered its Early Intervention Program for municipalities facing financial collapse. With the first phase done, the city is in the second phase of the program and working with its advisor The PFM Group on a strategic plan to improve its finances.
However, the city expects to end the year with a deficit when it accounts for the unbudgeted expense of $811,657 paid to private contractors to clean up after the March blizzard. The city appealed to the federal government for partial reimbursement, but has been denied any aid.
The expense does not show up in the general fund, explained Brett Kittrick, the city finance director. Instead, general fund money was transferred to a disaster recovery account. At the end of the year it will be factored in, he said.
“The financial impact of the storm will be recognized in the general fund for 2017 audit purposes,” Kittrick said in an email.