BY ROB KUNZIG • STAFF WRITER
Dewey Beach — One year ago, Dewey Beach was almost $300,000 behind budget. Now, June’s profit-and-loss report shows the town outperformed its budget for the sixth month in a row, vaulting $117,000 into the black for the 2009 calendar year.
A rainy June hurt parking permit sales and meter revenues, Town Manager Gordon Elliott said. While Dewey budgeted $60,000 for seasonal parking permit sales, it sold only $30,000; likewise, daily parking permit revenue lagged behind by nearly $5,500.
Cost cutting helped blunt the shortfall.
Almost all departments reported they are under budget for their payrolls: the police budget paid out almost $4,500 less than anticipated, and the lifeguards beat their allotted amount by nearly $5,000. Employees found ways to skimp on everything from office supplies to gasoline.
“You keep the overtime down. That helps,” said Elliott. “You try to lessen your expenses by keeping your electrical bills as far down as you can. That’s what helps in the long run.”
Elliott said Dewey employees constantly search for the lowest bidder on maintenance services, auto parts and equipment. Police are even doubling up in squad cars, Elliott said, effectively halving the department’s fuel needs.
Elliott said a soggy start to the summer definitely hurt the town’s cash flow, but not too badly – Dewey is keeping on top of its parking tickets, Elliott said, sending out late notices exactly 30 days after a ticket was issued and getting the fine paid in Alderman’s Court. While those numbers lag behind budget, Elliott expects the money to arrive in the months to come.
Elliott blamed last year’s budget crisis on an excess of optimism – the town anticipated vastly more revenue than it received. The 2009 budget, he said, planned for the worst and hoped for the best.
“We were trying to operate off a budget that was unrealistic in 2008,” he said. “Budget and finance did a much better job this year.”
Legal fees again exceed budget
Legal fees – a thorny issue between commissioners and residents – exceeded the amount budgeted for June by almost $4,400.
Meanwhile, the town spent more than $17,000 fighting three lawsuits. Halfway through the year, Dewey Beach has consumed 79 percent of its budget for regular legal fees, spending $59,000 of the budgeted $75,000, and 27 percent of the funds set aside for litigation, spending $27,000 of $100,000.
“The month of June was not a kind month for legal fees,” said budget and finance committee Chairman Marc Appelbaum. Appelbaum said commissioners cannot continue to blame overruns on expensive charter changes, which cost $1,000 in June.
By comparison, commissioners spent more than $1,500 on phone calls to town attorney Glenn Mandalas.
Commissioners need to take accountability for the budget, he said.
“You can’t expect police and lifeguards to hit budget and have everything else get out of line,” he said.
Still, he said, Dewey is on track for a successful year.
“The town is dramatically outperforming last year,” he said.