Purpose of Budget Review
The purpose of our budget review was to determine whether the significant revenue and expenditure projections in the Town’s preliminary budget for the 2017 fiscal year are reasonable.
The Town of Deerpark, located in Orange County, issued debt totaling $868,000 to liquidate the accumulated deficit in the Town’s general and highway funds as of December 31, 2008. Local Finance Law requires all local governments that have been authorized to issue obligations to fund operating deficits to submit their preliminary budgets for the next fiscal year to the State Comptroller for review while the deficit obligations are outstanding.
- Based on the results of our review, we found that revenue and expenditure projections in the proposed budget are reasonable.
- The amount of appropriated fund balance in the general and highway fund budgets represent 28 and 18 percent, respectively, of the projected year-end fund balance. The continued reliance on appropriated fund balance to fund Town operations will eventually deplete fund balance and adversely affect the Town’s financial condition.
- The Town’s preliminary budget complies with the property tax levy limit.
- Identify other revenue sources to replace fund balance or make corresponding reductions in expenditures in future budgets.