PROVIDENCE – Mayor Jorge O. Elorza announced a year-end operating surplus of $9.5 million Oct. 31, which will be used to pay down the city’s multimillion dollar structural deficit.
The surplus was realized largely due to a $3.77 million savings in debt services, which helped offset $1.7 million overspent for the Fire Department.
The city also reported a $1.82 million increase in property taxes and a $1.99 million increase in licenses and permitting fees, which offset revenue shortfalls reported out of other departments.
“Due to our proactive efforts, we are pulling ourselves out of a significant deficit faster than anticipated,” Elorza said.
Elorza says the operating surplus, which includes a $4.3 million deficit reduction payment and $5.1 million in additional money, will go toward paying down the cumulative deficit, which at the end of fiscal 2015 totaled $13.4 million. It is expected to decrease to $3.97 million. •
