The city is expected to have a $1 million surplus after all yearend entries are completed, council was told at its meeting Tuesday night.

In her finance report to council, Director MeLinda Hite noted revenues exceed expenditures by $1.3 million. Deducting payables and receivables, staff projects a $1 million surplus.

The surplus came from action taken by the former council to hold expenses. It also came from the debt associated with the Roanoke Rapids Theatre, Mayor Emery Doughtie said this morning.

While there are plenty of things the city could do with the money, Doughtie believes it should go to boost the fund balance. “I would like to see us have six to eight months spending in reserve.”

The surplus money would boost the fund balance by about 6 percent, the mayor said.

While the surplus is good news, Doughtie said the city can’t be extravagant because it is looking at no revenues coming from the theater. “We can’t afford to be extravagant at all.”

While he praised the former council for being fiscally conservative, he also said if the city hadn’t got in debt over the theater, those cuts wouldn’t be needed. “Before we took on that tremendous debt the city was in great financial shape. I hope at the end of four years we’ll be at a good point, too, if we can cut that debt in half.”

If the city can sell the theater, “We would have manageable debt. We’re going to have several debts paid off.”

There are also some new businesses planning to build in the city, which will bring in tax revenues, the mayor said.

If the city can get the theater producing shows and one or two businesses to locate in Carolina Crossroads, the mayor believes things would begin to change. “We hope in the next 30 days to get our hands around this thing.”

Because of litigation to get Lafayette Gatling out of the theater, however, “Right now we can’t do that,” Doughtie said. “It would do a lot for morale to have the theater filled up for  Labor Day weekend.”

Doughtie would like to see events outside the theater during the day and a concert at night, perhaps a festival concert catering to a diverse range of tastes.

Before that can happen, however, the court system must hear arguments on why Gatling should be ousted from the venue. “I’m getting a little concerned we’re losing some support by this going on and on,” he said of no hearing date being set yet.