7.5. SR 06-09-2003 - Laserfiche WebLink

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MEMORANDUM TO: Mayor and City Council FROM: DATE: Pat Klaers, City Admistra~ June 9, 2003 SUBJECT: 2003-04 Budgets Update Item ~ 7.5. Over the last couple of months, the possible budget amendments to address the cuts in state aids has become more clearly identified. The last two City Council updates on April 21 and May 12 provided some comments on possible additional revenues and some tentative reductions in the personal services, supplies, other services and charges, and capital ouday expenditures categories. Now that the State Legislature has made its fmal decision regarding state aid reductions, it is appropriate to present some more detail on the proposed budget amendments. Attached for your information is a listing of possible amendments to the adopted 2003 budget. As previously reported to the City Council, the department heads have done an excellent job in evaluating their budgets and coming up with some reductions. The city is scheduled to receive a reduction in its Local Government Aid (LGA) funds in 2003 in the amount of $644,138. This is the adjustment that needs to be made in the adopted 2003 budget. The attached list identifies changes in the amount of $447,000. It is anticipated that this list is conservative and that there will be some additional reductions "sprinkled" throughout the departments and throughout the expenditure categories. Also, some additional revenues are anticipated. The amount of reserves that are needed is uncertain at this time. The final amount will be determined towards the end of the year. Any shortage can be addressed with a transfer in from the liquor store enterprise fund or by using the general fund reserve. Overall, the city is in a reasonable position in 2003. There will not be a major impact in city services, nor will there be a major drain on the city reserves. 2004 Budget Notes... We have just started work on the 2004 budget. In 2004 the city will also receive $644,138 less in LGA than what was in the 2003 adopted budget. Of this amount, 60% can be made up i_f the Council chooses to increase property taxes.