Facing uncertainties surrounding revenues for the upcoming 2011-2012 fiscal year budget, Washington’s City Council will look closely at capital-improvement projects č and expenditures č scheduled for the upcoming fiscal year, which begins July 1.

During its meeting Monday, the council made it clear that projects included in the city’s Capital Improvements Plan and scheduled for implementation in the next fiscal year will be carefully analyzed during this year’s budget-building process to determine which ones must be implemented and which ones can be deferred. Deferring projects scheduled for implementation in the 2011-2012 fiscal year means the city won’t have to come up with the money needed to pay for those projects that fiscal year, thereby helping reduce the city’s expenditures for that fiscal year.

The biggest CIP project slated for the 2011-2012 budget is building the new police station on city-owned land next to Warren Field Airport. The CIP lists the cost of the project at $3.88 million.

Councilman Doug Mercer raised concerns about the $3.88 million project cost, saying that amount was higher than what was approved by the council.

In June 2010, the Washington City Council voted to pursue a $3 million loan to help pay for the new facility, with an estimated construction cost of about $3 million and about $1.5 million to $2 million in related costs such as design fees, site preparation and equipment.

The city has $1 million set aside in its public-safety capital reserve fund to help pay for the project.

Mercer asked if the city was going to stay with the $3 million approved by the council or if that amount is going to change. That answer could come next week.

The council meets at 8 a.m. March 8 to further discuss the project. The council wants to make sure the soil at the site selected for the new police station will support the facility. The council also wants information concerning design work on the project.

The council is keeping close watch on the city’s fiscal situation as it readies itself to cobble a budget for the upcoming fiscal year.

During a budget-strategy session Jan. 31, council members and Mayor Archie Jennings agreed on two things concerning the upcoming budget. One of them was that they’re not sure how the projected shortfall of revenue in the state’s budget will affect the city’s revenue stream in the next fiscal year, which begins July 1. The state faces a budget shortfall of about $2.7 billion, according to Gov. Beverly Perdue.

“The big question is what the state’s going to do with funding for cities and counties,” said Matt Rauschenbach, the city’s assistant manager and chief financial officer, at that meeting.

Several years ago when Mike Easley was governor, the state withheld some revenues from local governments to help cover a shortfall in the state’s budget. Jennings and the council is concerned that could happen again.

That’s why CIP expenditures scheduled for the upcoming budget are getting close scrutiny by the council.

“Just remember, because it’s in the CIP doesn’t mean it gets into the budget,” Jennings said.