The city of McMinnville is not headed for financial disaster in three years because the economy will improve and revenue will increase, according to Alderman Ken Smith.Three-year budget projections calculated by city administrator David Rutherford and published in the Aug. 9 edition of the Southern Standard puts the city at $800,000 below what will be needed to begin fiscal year 2016-17. The city needs $2 million in fund balance to begin a new fiscal year.By Rutherford’s projections, the city’s fund balance will dwindle the next three years. By 2015-16, it will be just $1.2 million at the end of the fiscal year.“I do appreciate David putting that information together for us because it does show us how much revenue we have to generate over the next three years to avoid financial problems,” said Smith during a Finance Committee meeting.Rutherford’s information was based on expense projections.