WIUM Tristates Public Radio

Operating Budget in the Red

Feb 9, 2012

Expenses will exceed revenues for the Macomb Park District this year, but its executive director said the loss can be absorbed.

The district projects it will spend around $1 million in its operating budget while taking in approximately $900,000. The operating budget covers just about everything the district does with the exception of capital projects.

Executive Director Ray Peterson said the district will rely on cash reserves to make up the difference.

“We'd like to have at least a six month reserve. Some of the accounts are getting out to where there is a nine or ten month reserve, which is more than what we really should be carrying,” Peterson said.

Peterson said two-thirds of the revenue for operations comes from property taxes. Much of the rest is generated through program fees.

He said expenses have risen due to utility prices and the cost of labor. He said pay raises will be given this year after about a three year period in which staff salaries did not increase.

“Some of that's being reflected now in that we're going to go ahead and make some wage adjustments this year,” Peterson said.

The district's budget year coincides with the calendar year.