The city is projecting a budget surplus of more than $500,000 for the fiscal year that ended in June, Mayor Allan Fung announced last week.

Flanked by Finance Director Robert Strom and other municipal department heads at City Hall, the mayor said the prior year’s surplus and the passage of a fiscal year 2015 with no tax increase – both of which have been achieved for three consecutive years – represent the fruits of a collaborative, responsible approach in managing the city’s finances.

“We still face many challenges and we will not let down our guard – not even for one minute,” he said. “But there can be no doubt that our sacrifices over the past few years have placed Cranston in a much stronger position today … We truly are a city on the move and a model for the entire state of Rhode Island.”

The surplus figure announced by the mayor represents only the municipal side of the budget. The Cranston Public Schools budget for the last fiscal year has also projected a surplus of more than $2 million. None of the figures have yet been finalized through an audit.

Fung specifically pointed to the movement of municipal employees into 401(k)-style plans with defined contributions as key to further strengthening the city’s financial standing. He pointed out that 21 employees in two unions have already made the switch, and new employees will also participate.

“We continue to find innovative ways to increase efficiency in city operations to conserve taxpayer dollars,” he said.

The mayor also cited savings realized through a pension reform agreement with police and fire retirees, and said new business development has helped offset any increase in the tax burden.

“As we all know, Cranston has faced a severe economic and budget crisis in past years. By working together, we have achieved a remarkable turnaround in the city’s fortunes. We have turned around Cranston and made our city a model of reform for the entire state,” Fung said. “It is important to acknowledge the hard work of members of my administration and some on the City Council who have worked with us over the years to reach consensus and together solve the problems facing our city. I could not be more proud of how much we have accomplished.”