After having expenditures totaling $661,633 more than revenues on a cash basis for the first quarter of 2008, Crestwood’s financial picture has made strides.

A midyear report of the city’s finances on a cash-basis accounting method shows the city’s three major funds had revenue totaling $694,600 more than expenditures by the close of the year’s first half.

Revenue totaling $1,356,233 more than expenditures in the second quarter alone helped turn the first-quarter deficit into a midyear gain.

A 2008 first-quarter financial report previously had shown a combined deficit of $2,047,549 in the city’s three major funds.

However, that report was done on a modified-accrual accounting basis while the second-quarter report was done on a cash basis. The modified-accrual accounting method is the same structure used by auditors to track Crestwood’s annual fiscal activity.

The second-quarter report also shows that as of June 30, revenues in all three major funds were at more than half of the year’s total budgeted amount at the halfway point of 2008.

The general fund had collected $5,564,033 this year, or 62 percent of 2008 projected revenue of $9,013,930.

The park and stormwater fund had gathered $1,155,766, or 53 percent of 2008 projected revenue of $2,161,972.

The capital-improvements fund had generated $956,431, or 64 percent of the 2008 projected revenue of $1,492,502.

Expenditures in each fund also were at more than half of 2008’s projected amounts at the year’s midway point.

Expenditures in the general fund totaled $4,704,172, or 52 percent of anticipated expenditures of $8,985,622.

Expenditures in the park and stormwater fund totaled $1,411,917, or 60 percent of anticipated expenditures of $2,341,917.

Expenditures in the capital-improvements fund totaled $865,542, or 64 percent of the anticipated $1,348,570 for 2008.

Compared to 2007, the city had a smaller gain in revenues over expenditures at the midyear point of this year. While the 2008 midyear point saw $694,600 in revenues over expenditures, the end of the second quarter in 2007 saw $1,734,413 in revenues over expenditures.

While the city’s overall revenue of $7,676,230 collected in the first half of 2008 is more than the $7,500,026 collected in the first half of 2007, expenditures totaled $1.2 million more in the first half of this year than in the first half of 2007.

The second-quarter report shows that the city spent $6,981,630 in the first half of this year while spending $5,765,613 in the first half of 2007.

The city is budgeted to end 2008 with a $9,825 surplus with the help of transfers between funds.

Officials project $12,668,404 in revenue and expenditures of $12,676,109 for the city’s three major funds. But with three interfund transfers, the city is budgeted to finish the year in the black.

The capital-improvements fund is budgeted to transfer $155,000 to the general fund.

The general fund will transfer $89,000 to the park and stormwater fund and the city’s performing-arts fund, which is no longer in operation, will transfer $17,532 to the park and stormwater fund.

The 2008 budget included a 2-percent pay increase for all employees and a 15-percent increase in employee health-care costs effective July 1. Besides that 2-percent pay increase for all employees, 15 Police Department employees received additional raises in May and June.

Documentation provided by the city’s Finance Department shows that 10 police employees received salary increases collectively totaling $12,732 on May 15 — two days after Police Chief Michael Paillou made a presentation to aldermen during a May 13 closed session.

Paillou’s presentation involved a restructuring of the Police Department that included promotions and pay raises to be utilized through funds saved from the midyear retirement of former Capt. Rick Downs and two resignations.

Additionally, five officers received salary increases through promotions collectively totaling $23,303 on June 1. Besides the increases through the promotions, Paillou has said that raises for 10 other department employees were needed to bring their initial starting salary up to the city’s pay-plan level of 90 percent of average pay.

Because of Downs’ retirement and the two resignations, the total restructuring of the Police Department even after pay raises were approved resulted in a department-budget savings of $76,980 in salary and benefits. But without the $36,035 in pay increases, that savings would have jumped to $113,015 in salary and benefits from $76,980.