City of Yuma projects revenue dip of $3 million

  With the sluggish state and national economy trickling down to Yuma, the city's general fund budget is projected to be about $3 million less than anticipated.

  "Everybody's hearing how bad it is ..." said Yuma City Administrator Mark Watson. "That's rippling through the entire economy."

  At the beginning of the fiscal year, city officials estimated they would bring in more than $66 million to the general fund budget. More recent calculations, driven by lower-than-expected retail sales, show the city will probably end up with a little more than $63 million.

  These numbers were presented to the Yuma City Council at a work session roundtable Monday.

  City Finance Director Pat Wicks said they overestimated the amount of money sales tax would bring in. While retail trade was higher than in previous years, about 5 percent, it did not meet the revenue the city had anticipated.

  Deputy City Administrator Bob Stull said no programs would have to be cut this year. However, the city probably would have to dip into its $13.2 million reserve fund.

  The real belt-tightening will being next year, as Yuma's 2008-2009 fiscal year budget is drafted.

  Watson said they are already looking at ways they can cut. Some vacant employee positions may go unfilled unless they are deemed vital to city operations.

  "We're going to see, in the 21 years I've been in the city, the tightest budget I've ever seen," Stull said.

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Sarah Reynolds can be reached at sreynolds@yumasun.com or 539-6847.