WARWICK, RI — Mayor Scott Avedisian announced Monday that a preliminary audit of the city’s FY17 finances suggest the city has posted a budget surplus of $5.87 million.
Unaudited figures show an estimated gross budgetary surplus of $6.7 million, according to the Mayor’s office. Revenues are estimated to exceed the final budget by $5.87 million and expenditures are estimated to fall below budget by $825,324, according to Finance Director Ernest Zmyslinski.
It is anticipated, however, that the budgetary surplus will be reduced by an increase in the City’s year-end reserves. The City will reserve an additional $200,000 to cover an increase in outstanding year-end encumbrances – the cost of goods and services ordered, but not received, prior to June 30, 2017.
Also, in accordance with the City’s enacted FY18 operating budget, an additional $1.3 million will be reserved at year-end and transferred to revenue as defined in the budgetary plan.
After accounting for the expected budgetary surplus and overall increase in reserves, Avedisian and Zmyslinski noted that the unassigned fund balance is estimated to increase by $5.2 million. It is anticipated that the unassigned fund balance will increase from $18.5 million to $23.7 million.
Since the Warwick School Department audit has not been completed, the City’s preliminary audit projects a balanced budget for them.
It is important to note that the figures are only estimates at this time and may change in the final audited statements.