Adjustments trim projected New London budget deficit to $1.1 million

New London - The city's finance director has recalculated department budgets and reassessed projected revenues halfway through the fiscal year and estimates the city faced a $1.1 million shortfall as of Dec. 31, 2012.

The projected deficit is about $300,000 less than what Mayor Daryl Justin Finizio predicted last week.

"This is our best guess at the moment,'' Finance Director Jeffrey Smith told the City Council finance committee Monday night.

One of the major changes from last week's estimates, according to Smith, is in the fire department budget, where he took about $200,000 from a personnel line item that had not been spent as of the end of the second quarter of the fiscal year.

"They may not need to use that money,'' Smith said.

He also looked at all department budgets and line items such as materials, supplies and consulting fees and "squeezed out almost $200,000 in savings."

The city is receiving about $300,000 less from the state in PILOT money and about $300,000 less than it expected in buildings fees and conveyance taxes.

- Kathleen Edgecomb

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