Turn back the clock to the 2018 campaign for mayor. After 18 years of serving the community, Mayor Scott Avedisian left to become president and CEO of the Rhode Island Public Transit Authority. As City Council president, Joseph Solomon completed Avedisian’s term for mayor and was running for election. The Democrats united behind Solomon. Sue Stenhouse, who had served as Ward 1 Councilwoman and run for Secretary of State on the slate of former Gov. Donald Carcieri in 2006, carried the GOP standard for mayor.

The mayoral campaign focused largely on the city’s financial condition. Warwick had frittered away a good portion of its unrestricted revenues – the rainy day fund – and the city faced some belt tightening, people were told. At one point, as an audit hadn’t been completed, the fund was thought to be less than $15 million, down from nearly $22.

At the time, Peder Schaefer, a former Warwick City finance director working for the Rhode Island League of Cities and Towns, found the numbers being bandied about hard to believe.

“Things just don’t change that quickly,” Schaefer said Thursday.

Schaefer is back at City Hall. Mayor Frank Picozzi didn’t hesitate to sign him up as finance director when he applied for the post.

Schaefer reported that as of June 30, 2020, the audit shows an unassigned fund balance of $26.8 million and a total fund balance of $30.3 million. This does not include unencumbered American Rescue Plan funds as of this point totaling about $17 million.

The total fund balance for the fiscal year ending June 30, 2019, was $31.6 million and for the prior year, the year of the 2018 mayoral campaign, it was $27.4 million.

Not only do the numbers look better for prior years than what made for campaign fodder, but the city’s financial picture continues to brighten.

Earlier this month, Schaefer sent a memo to the mayor and City Council showing for the last fiscal year operating revenues exceeded estimates by $1.6 million.

This does not include $5.1 million in American Rescue Funds pledged to support last year’s budget or the $2.8 million draw-down from the fund balance that was included in the prior budget.

The finance department is in the process of finalizing figures for the FY 21 audit that is required to be completed by this Dec. 31.

So where did all this money come from?

Schaefer cites three sources of higher than budgeted revenues for the past fiscal year. They are $2.2 million more in tax collections and although state aid fell $6.5 million that was offset by $7.1 million in federal funding. Even though the effect of the pandemic on hospitality, food and beverage taxes and airport parking tax revenues were taken into consideration in budget projections those revenues took a hit. That was partially offset by the robust real estate market and an increase of $800,000 in recording, real estate transfer and building permit fees.

On the expense side of the ledger, Schaefer reported that expenses were almost $4.4 million less than budgeted.

As a result of administrative actions not to fill vacancies or contract services, there was an $800,000 savings in payroll and software maintenance costs in central administration. A $1.6 million deficit in the Fire Department was largely offset by a surplus in the Police Department, leaving Public Safety costs $600,000 over budget.

The effects of the pandemic were reflected in social service spending that included recreational and library activities registering a $1.1 million savings on budget. A $1.9 million surplus was registered in public works relating to layoffs and lower than projected utility costs because of the mild winter.

Schaefer is also projecting a more than $200,000 School Department surplus and that a deficit in employee benefits associated with severance payments to be offset by significant savings in unemployment costs as a result of subsidized unemployment under the CARES Act.

Schaefer said he expects to have a read on the current fiscal year to the mayor and City Council next month.

“We stuck our necks out on buying two sanitation trucks,” Schaefer said of the used trucks Mayor Frank Picozzi moved quickly to acquire when for an extended period only seven of the city’s fleet of 15 trucks were operational. The trucks costing a total of $500,000 were not budgeted. Schaefer said Fire Department overtime continues to exceed budget as the department trainees have yet to fill vacancies.

Helping to offset these costs has been greater than projected hospitality and related revenues as the economy rebounds.

The unassigned fund balance is in Webster Bank where it makes a negligible return of 0.2 percent, reports City Treasurer Lynn Prodger.

“Right now we’re cash flush because of tax bills,” she reported. The city’s cash balance was $77.4 million and $19.7 million in American Rescue Funds as of Tuesday.

She said the picture changes dramatically at the end of the fiscal year as the city enacts a new budget and sends out tax bills.

“That’s when I’m biting my nails,” Prodger said.

The city’s cash balance ebbs as it faces bond debt payments at various times of the year and flows with quarterly tax payments. On average, however, Prodger said the city needs about $35 million monthly to operate.