UPLAND -- The City Council should adopt a resolution amending the 2012-13 fiscal year budget to show a small savings in expenditures, a committee has recommended.
The city Finance and Economic Development Committee made the recommendation after getting an update on the city's mid-year finances on Tuesday.
Despite the reduction in expenses, the city is concerned over a smaller-than-required budget reserve.
"I guess now the hard work - it doesn't stop because we don't have any room for error," said Councilman Brendan Brandt, a committee member.
The city's mid-year review shows a savings of $561,500 to the general fund, of which $310,150 may still need to be used, leaving $202,580, said City Manager Stephen Dunn.
He said city departments have requested the $310,150 in additional expenditures, which the committee recommended the council approve.
However, the expenditures will only be funded if needed, Dunn said.
"Those will be implemented when necessary and, quite honestly, I don't expect to have to implement those," Dunn said.
The $310,150 breaks down into $162,500 in personnel costs, $91,750 in maintenance and operations, $20,000 in professional services, $7,500 in machinery and equipment and $28,400 in building maintenance.
The city ended the 2011-12 fiscal year with just under $1million in reserve, a decrease from $6.1 million the previous year.
Dunn said he and his staff will present
"I'm going to be extremely conservative this year," Dunn said. "I think we're always conservative, but we blew through the estimate. We can't blow through it any further. There is no way possible we'll let our reserves drop any further than they have."
In November, the City Council gave Dunn approval to look into several ways to eliminate at least $2 million from the annual budget and try to build up the city's reserves to $4 million to equal 10 percent of expenditures over the next five years.
City employees agreed in January to pay their portion for their pensions, saving the city about $800,000 next fiscal year.
City staff is projecting minimal growth in revenue due to the economy, but some new revenue is expected due to the new expansion at the Colonies Crossroads shopping center.
The recommendation to amend the 2012-13 fiscal year budget to show a small savings in expenditures goes to the council on Monday evening.
Reach Sandra via email, call her at 909-483-8555, or find her on Twitter @UplandNow.