By TESA CULLI

tesa.culli@register-news.com

MT. VERNON — Although the state is running four months behind in its tax disbursements, the city is still in good financial shape, based on the third quarter budget review.

“Several communities in our region are facing $2 million to $3 million deficits,” City Manager Ron Neibert said. “We are fortunate that local revenues have stayed stable.”

The council held a workshop session following its regular meeting on Monday to hold the budget review, which is being done quarterly at this time. City Councilman Todd Piper asked what would happen if the state started getting further behind in its payments, and City Finance Director Merle Hollmann said the city is still in good shape, but added there is talk at the state level of cutting local shares on some taxes from 10 percent to 7 percent.

“That would mean about $350,000 per year in lost capital,” Hollmann reported.

City Councilman David Wood said the prior council and the current council have worked hard with city officials to keep a line on the budget.

“Our finances are in excellent condition,” Wood said. “And because of that, we are better able to weather this storm.”

In the general corporate fund, the operating cash balance as of April 30, 2009, was $1.13 million, which did not include a grant of $397,000. On July 31, 2009, the balance was at $1.1 million and on Oct. 31, 2009, the balance was at $1.5 million. The operating cash balance in the general corporate fund as of Jan. 31 was at $660,717 — which reflected a $1 million payment for commercial insurance in November. Hollmann said the balance is expected to move back up as tax receipts are received. The general corporate working fund balance showed $1.8 million, with the budget estimated to be $1.4 million, but changed due to about $100,000 of expenditures budgeted in the prior year spent in 2009-10. The working fund balance on July 31, 2009, was at $1.2 million due to an extra payroll in the quarter and late property tax payments. On Oct. 31, 2009, the working fund balance for general corporate was at $1.3 million with $83,000 in late property taxes yet to be received. The working fund balance for general corporate on Jan. 31 was $1.4 million.

Actual revenues in the general corporate fund were at 75 percent of its budgeted amount on Jan. 31, and the actual expenditures on the same date were at 73 percent of the budget, excluding capital expenditures.

The general fund restricted funds for capital purchases as of Jan. 31 was at $601,509.

In the public utilities fund, the operating cash balance as of April 30, 2009 was at $152,226; on July 31, 2009, the balance was at $107,278 reflecting three payroll periods in July; and the balance on Oct. 31, 2009, was at $194,141. The operating cash balance for the public utilities fund on Jan. 31 was at $135,881 after paying $129,000 for commercial insurance.

The public utilities working fund balance was at $499,831 on April 30, 2009, more than the budget estimate of $442,983. The working fund balance on July 31, 2009, was at $458,476, reflecting an extra payroll during the period and late payments of property tax receipts; on Oct. 31, 2009, the balance was $518,689; and the balance on Jan. 31 was at $495,242.

Public Utilities actual revenues on Jan. 31 were at 76 percent of the budget and expenditures were at 75 percent of the budget in the fund. Restricted cash for capital development in the public utilities was at $119,809.