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Newman warns of upcoming deficit
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With McMinnville officials prepared to pull the hammer back and begin a $2 million renovation of Park Theatre, one board member is expressing last-minute concerns about the city’s financial situation.According to projections generated by Vice Mayor Ben Newman and distributed to board members by email, the city’s fund balance will diminish over the next three years resulting in a deficit — even without the added cost of Park Theatre renovations.“This is for your information only,” said Newman. “Please note the diminishing fund balance regardless of whether we complete the Park Theatre project or not.”Without Park Theatre renovation, Newman projects the city’s fund balance will diminish from $3.8 million in fiscal year 2013-14, to $2.4 million in fiscal year 2014-15. In 2015-16, the fund balance will be $1.2 million — an $800,000 shortfall on the $2 million the city needs to begin each fiscal year.Newman projects the debt service for Park Theatre renovations will be $100,000 in fiscal year 2014-15 and $250,000 in fiscal year 2015-16.