Although the City of Fairfield has operated under budget for the year, a significant decline in sales tax revenue has created a deficit, according to the year-end Financial Audit.

Council members learned both the bad news, and some good, during a Special Called Meeting held Tuesday, March 21, 2017.  The 2016 Financial Audit was presented by Frank Steele of Anderson, Marx and Bohl.

BAD NEWS

–Budget was based on revenue continuing.  “It has NOT continued,” says Steele.

–City sales tax revenue has declined significantly.

–Total revenues are $800,000 less than projected.

GOOD NEWS

–City debt is declining.  “Debt is low,” for the size of our city and its revenue base, says Steele.

–General Fund has very little debt.

–Asset to debt is low.

–Retirement is almost completely funded.  “This is unique in municipal government,” says Steele, who pointed to recent news stories of problems the City of Dallas has had with pension funds.

Overall, the City’s situation is stable, according to Steele.  “But, if you continue the expenditure budget without changing the revenue base, you could get into a problem faster than you think,” he cautions.

The audit was officially accepted by Council members.

OTHER NEWS

In other action, council approved $12,500 in Hotel/Motel funds to be given Caney Creek Shooting Sports for advertising and promotion of the Browning Briley Sporting Clays Tournament, being held April 18-23, 2017.

Last year, owners Kitty Granger and John Bounds received $37,500 to promote three major events:  the Browning Briley, the U.S. Open, and the Texas State Shoot.

The reduction is in keeping with the Council’s previous decision to decrease, by half, the amount of Hotel/Motel monies granted to organizations to promote annual events.

By law, Hotel/Motel revenue may only be used to promote tourism, and the convention and hotel industry.

“Last year was a unique year,” said Bounds.  “This year, we just have the Browning Briley.  Next year, we may not have any major events.”

According to City Administrator Jeff Looney, Fairfield hotels were full during last year’s events.

The City of Fairfield will be prominently displayed as a major sponsor (on posters, t-shirts, etc.) during the April event.