Providence anticipates $8.5M surplus at end of fiscal year
PROVIDENCE, R.I. (AP) — The city of Providence says it expects to have its fourth consecutive surplus at the end of this fiscal year.
Mayor Jorge Elorza’s office says $3.6 million of the estimated $8.5 million surplus will be allocated to the rainy-day fund, raising it to $20 million.
The Providence Journal reports the numbers won’t be finalized until an audit is complete.
The city’s chief financial officer, Lawrence Mancini, says the surplus shows the city is financially stable, but acknowledged that rising graduated payments toward its pension liability may become impossible to make at some point.
The state treasurer considers the funded status for the city’s plan “critical,” with accrued liabilities of nearly $1.36 billion.
Elorza’s office says better management of each department’s budget, strong tax collections and attrition helped create the surplus.
Information from: The Providence Journal, http://www.providencejournal.com