6.0. SR 11-10-2003 - Laserfiche WebLink

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MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor and Council Pat Klaers, City Admini November I 0, 2003 2004 Municipal Budget Item 6. The last discussions with the City Council on the 2004 budget were held on August 25, and September 8, 2003. During those meetings discussion also took place on the status of the 2003 budget. 2003 BUDGET On June 9, 2003 the City Council amended the 2003 budget. These amendments were necessary due to a $644,138 reduction in Local Government Aid (LGA). In June, budget amendments in the amount of $447,000 were made and the vast majority ($439,500) of these adjustments were made in expenditures. This left the city with a budget gap in 2003 of $197,150. Options reviewed for closing this 2003 budget gap included making additional cuts in expenditures, using city reserves, and waiting to see if revenues would substantially exceed projections. Since the June meeting it has become clear that the growth related revenues (building permits, plumbing/heating permits, and plan check fees) will far exceeded the budgeted amount. These three line items were projected in the amount of $761,850 for 2003 and by the end of September the revenues received had exceeded this amount by almost $282,000. Accordingly, it no longer looks like additional cuts need to be made in the 2003 budget nor do we have to use reserves to balance the 2003 budget. Not needing to use reserves to balance the 2003 budget will provide us with an additional resource in trying to balance the 2004 budget. It should also be noted that if growth continues in 2004 at the rate that we are seeing in 2003, then an additional building inspector may need to be hired. This additional building inspector is not in the 2004 budget but revenues from the growth activities would be sufficient to cover this unbudgeted personnel expenditure.