red.

But last year's $84,876 deficit was an improvement over the $347,829 loss the City suffered in 1991.

Both Corporation secretary Mr. Roger Sherratt and Mayor the Rt. Wor. Cecil Dismont said the City had to watch its expenditures. But neither was overly concerned by the red ink.

"Like any other business, and like the Government, we've certainly been affected by the downturn in the economy,'' Mr. Sherratt told The Royal Gazette .

Short of laying off any of the City's 110 employees, "what we've been trying to do is take steps wherever possible to reduce our expenditures,'' he said.

"We're in a pretty good position,'' Mr. Dismont said. "We only have one loan and that's the loan we took out for the extension of the sewer.

"We're just holding the brakes, like everybody else.'' Overtime and maintenance were two areas where the Corporation had cut back.

The restraint was reflected in total expenses last year of $8.61 million, just .65 percent higher than the $8.56 million the Corporation spent in 1991.

Revenues improved 3.9 percent, to $8.53 million from $8.21 million a year earlier.

Tax increases accounted for the improved revenue picture.

It was only in the first part of 1993 that the Corporation showed signs of emerging from the recession, as traffic and income approved at the hard-hit City docks. Mr. Sherratt could not say whether Hamilton would post another deficit in 1993.

The City strived for a balanced budget, and small surpluses in past years had helped to absorb the deficits, Mr. Sherratt said.

A condensed version of the annual report by auditors Gray and Kempe showed the 1992 deficit was debited to a $1.69 million current fund surplus. However, the surplus fund included accounts receivable and inventories as well as cash, Mr.

Sherratt said.

The Corporation's cash position was "reasonably healthy at this point,'' but "certainly there is no complacency with regard to it,'' Mr. Sherratt said.

"We do have to watch our expenditures very carefully.

"We can't continue to go on with a deficit every year, even if it's a slight one.'' The only outstanding loan was a $700,000 debt resulting from the recent extension of the City's sewer outfall.

But two other capital projects on the books -- construction of a multi-storey carpark at Bull's Head and $5 to $6-million in planned dock improvements -- were expected to add to the City's debt.

Neither job was expected to be under way this year.

Due to corporate sponsorships, the City's bicentennial celebrations were not expected to have a major impact on this year's budget, Mr. Sherratt said.