New Windsor officials redesign budget

May 16, 1994|By Traci A. Johnson | Traci A. Johnson,Sun Staff Writer

New Windsor's government is reorganizing its management and accounting as it prepares the town's fiscal 1995 budget.

Mayor Jack A. Gullo Jr. and the Town Council will discuss the operating budget at a work session at 5 p.m. today in Town Hall.

Residents won't really notice a difference in the budget procedure. And, it is unlikely that the town's 45-cent tax rate will increase, the mayor said.

But for accounting purposes, New Windsor's budget system will be more detailed. It will consist of three budget plans rather than the previous operational-general fund arrangement.

The town will have an operating budget for day-to-day expenses, a capital budget for such items as town equipment and an Enterprise-Special budget that will itemize and control money collected and used for special improvements, such as those caused by increasing development.

Mayor Gullo and the council are working on a capital budget and capital improvement plan. The mayor said town government plans to use its $350,000-plus surplus to finance capital improvements, rather than making such purchases with revenues from the general fund.

"In years past, we have come up with a surplus every time, and that surplus has been invested to gain interest," Mayor Gullo said.

He said the budget surplus made $12,000 in interest last year.

"We need to adopt a capital budget this year, hopefully in conjunction with a five-year capital improvement plan, to have an idea what we want to have done in the next few years," he said.

"By using the surplus, we will not be infringing on the revenues we are bringing in that should be used for the operational budget."

In past years, Richard M. Warehime, former town clerk-treasurer, created the town's operating budget by taking suggestions from council members, then increasing the dollar amount assigned to each expense or income item in the current budget by 5 percent.

The town has never had a separate capital budget or a capital improvement plan, Mayor Gullo said.

Another public hearing, at which the mayor and council will accept comments on the operating budget only, will be held during the June 1 Town Council meeting.

Officials plan to introduce and approve the budget that night, Mayor Gullo said.

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.