After much speculation about the state of its budget two weeks ago, the Chehalis City Council received a clearer picture Monday night when looking at July’s additional revenues and expenditures.

    “I assured you it wasn’t that bad,” said Finance Manager Eva Lindgren to the council. “And now we’re looking at a situation that is considerably better.”

    Lindgren and City Manager Merlin MacReynold said it was due to timing issues and the fact the city had yet to receive some anticipated sources of revenues that caused the bleak numbers two weeks ago.

    The budget showed the city was facing a $542,000 shortfall. The number has shrunk significantly since then to about $37,500.

    Because of one-time revenues, Lindgren said, she was expecting the big swing, and she is anticipating another one in the opposite direction next month.

    “What we need to focus on is the recurring revenues and expenditures to see if we’re on a sustainable path,” Lindgren said.

    Even with the budget looking substantially better than it did a couple weeks ago, she noted some concern about sales tax and licenses and permits revenues.

    The city is facing about a $500,000 difference when comparing sales tax revenue numbers this year to this time a year ago. Last year, the council only budgeted for about a $350,000 decline in that revenue stream.

    Revenues from licenses and permits are down about $200,000 when looking at 2008 figures.