Preliminary calculations indicate a possible shortfall between estimated revenues and estimated expenditures in the city’s upcoming general fund of nearly $750,000, according to the city’s chief finance officer.

That’s nothing new for the city, and that shortfall could shrink as he revises his revenue and expenditure projections for fiscal year 2016-2016, said Matt Rauschenbach, the city’s CFO and assistant city manager, during his presentation to the City Council last week. He was one of several city department heads providing the council information for use as it begins work on the upcoming budget, which takes effect July 1. The information was presented during the council’s strategic planning session with city staff.

Rauschenbach’s preliminary projections indicate an increase of $821,408 in general-fund expenditures from the current fiscal year to the next fiscal year, with an increase in revenues during that same period of $80,000, leaving the projected gap between revenue and expenditures at $741,408. The expenditures include appropriating nearly $350,000 from the city’s fund balance (general fund) to help balance the upcoming budget.

Upon questioning by some council members, Rauschenbach acknowledged that the city likely would see more revenue than projected for its general fund and some decline in the projected expenditures. He said his initial calculations regarding revenue were on the conservative side and his initial projections on the expenditure side were somewhat bloated, thereby allowing the council to prepare for a worst-case scenario when it comes to putting together the upcoming budget.

The council, during its budget deliberations, will seek ways to narrow the gap between projected revenues and projected expenditures in the general fund. Options include raising property taxes (increasing revenues), increasing fees and reducing expenditures, including reducing the city’s workforce. Reducing the city’s workforce is not an option he favors, said City Manager Bobby Roberson. According to Roberson, the likely option is to increase some fees (water, sewer, sanitation and others) to cover increases in providing those services.

Councilman Doug Mercer said that option makes sense, especially if those increases are small ones made on a regular basis and not a large increase that’s made every five years or so. City taxpayers would be more amenable to a 1 percent increase every year or two than to a 10-percent increase every five years.

For fiscal year 2014-2015, which ended June 30, 2015, the city took in $11,463,911 million in revenue for it general fund (before transfers and debt issued), spending $11,087,157, according to an audit report. That was not the case in the nine previous fiscal years.

For additional coverage of the planning session, see future editions of the Washington Daily News.