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WILKES-BARRE — The city’s general fund budget balance shrunk by more than $1.3 million last month as expenses outpaced revenue growth, according to a draft of the July financial report.

As of July 31, the balance was $6.9 million, compared to $8.2 million a month earlier, according to the report.

In a month-to-month comparison, revenues increased by $1.4 million from June. However, during that same period, expenses rose by $2.7 million, according to the report.

Mayor Tony George has voiced his concerns of a dwindling balance since revenue collections have slowed as the year progresses. The largest bills come due towards the end of the year, forcing the city to tighten its belt to ensure there is enough money to pay the bills.

Shortly after taking office in January, George said he would have to lay off firefighters if forced to stick to the $51.5 million balanced budget left by outgoing Mayor Tom Leighton. George attempted to raise the 121.63 millage rate to make up for what he said were unrealistic revenue projections but city council would not approve the proposed tax hike and the changes requested by the mayor. A mill is a $1 tax for every $1,000 of assessed value.

The possibility of layoffs vanished with the announcement last week of a $1.1 million federal grant to retain six firefighters. The Staffing for Adequate Fire and Emergency Response grant will pay for salaries and benefits for two years.

Still, the draft report, provided monthly to the city council members, showed the projections were off.

Seven months into the year, just $14,563 of the $100,000 budgeted for delinquent recycling fees had been collected. The city has received $225,213 from the sale of city-owned property, far short of the $1 million budgeted. None of the $250,000 budgeted for delinquent magistrate fees has been collected.

At the council’s work session on Aug. 9, chairman Bill Barrett asked why there is no magistrate fee money coming in. Police chief Marcella Lendacky explained technical difficulties between computer systems still have to be resolved so a pilot program between Luzerne County and Navient, the contractor the county hired to collect the outstanding fees, can begin.

“It has to happen,” Barrett said. “That’s a very integral part of our budget.”

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By Jerry Lynott

[email protected]

Reach Jerry Lynott at 570-991-6120 or on Twitter @TLJerryLynott