The city government’s budget surplus continues a roller coaster ride, jumping by nearly $200,000 in the past year, according to the latest outside audit.

This surplus, however, is still far less than what is recommended.

The Rockland City Council is scheduled to meet with auditor James Wadman of Ellsworth at the council’s Monday evening, May 9 meeting to review his report.

The report shows that the undesignated fund balance, also referred to as surplus, was $839,284 as of June 30, 2010. This is an increase of $192,034 from June 30, 2009.

The $839,284 is far less than what the Maine Municipal Association recommends, which the auditor has pointed out in previous meetings with the council. The MMA recommends that a community retain a general fund balance of 8 to 10 percent of money it is budgeted to collect.

In Rockland’s case that would be a minimum of $1.45 million and as much as $1.8 million.

The city was able to rebuild the surplus in 2009-2010 because it took in more revenues than budgeted and spent less than budgeted. One of the largest differences between budget and actual was revenues in the transfer station account. Transfer station revenues exceeded the $1,218,660 budget by $217,236.

Motor vehicle excise taxes came in $27,084 more than the $808,866 budgeted amount. Code enforcement revenues came in $17,621 more than the $51,500 budget.

The city spent $236,190 less than it had budgeted for 2009-2010.