October 14, 2007
STAMFORD - The city is on track to end the fiscal year with a $600,000 deficit.
Peter Privitera, director of the city's Office of Policy and Management, released his first-quarter projections Friday, showing a potential $591,549 shortfall in June, largely because of overspending by the police department and the Smith House Health Care Center.
The police department has been averaging about $350,000 a month on overtime $50,000 more than budgeted, Privitera said. He projects city police will spend nearly $4.3 million on overtime this year -about $650,000 more than the city set aside in the department's $2.8 million overtime budget and $800,000 in contingency earmarked for that purpose.
The city plans to hire an administrative manager for the police department this winter to help control spending. The new employee, who is expected to cost taxpayers $59,425 in salary and benefits, will work with the chief on budget issues as well as purchasing and workers' compensation expenses currently handled by uniform personnel, Privitera said.
Stamford Fire & Rescue also is exceeding its overtime budget. It is projected to go over by about $300,000 - but those expenses are offset by savings in the volunteer departments.
The Smith House, which historically loses money, is projected to overspend its budget by $1.9 million. The city has set side $1.6 million to cover its losses, leaving a deficit of about $300,000, Privitera said.
The $600,000 deficit assumes elected officials will approve using a portion of last year's $6.1 million surplus to cover a nearly $1.7 million shortfall in state aid. If officials don't allocate money from the surplus to cover the revenue shortfall, Privitera said, the projected deficit will climb to nearly $2.3 million.
Donna Porstner
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