09-29-1987 CC MIN - SPECIAL - Laserfiche WebLink

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Page 2 City Council Budget Meeting September 29. 1987 e This figure was used in Option #2 based on the conversation that took place at the last Utility Board Meeting and figures provided to the Utility Board by its General Manager. 4.)The Liquor Store revenue was projected to increase $10.000 over Option #1 to equal the amount received in 1987. It was noted by the staff that this Option #2 is deemed to be the most realistic that the City can expect in 1988. It was further noted by the staff that this amount of money will still not finance all of the needs for services. The need for additional contributions from the Electric Utility to the City's General Fund to pay for municipal services was highlighted. General Fund Revenue Option #3 was presented to the Council with the caution that this option is a very last resort and some of the revenueS are not viewed as being realistic. It was noted that in doing municipal budgets a sound practice is to be conservative in estimating revenues and that Option #3 does not represent a conservative approach to revenue estimates. Three areas were noted for potential revenue increases under revenue Option #3. These three increases included an increase in administrative project fee in the amount of $15.000. due to the staff administrative charge increasing to 2.5% from the previously used 1.5%. Other potential increases included $5.000 additional monies under Refunds and Reimbursements due to the renting of the Old City Hall facility. plus an extra $10.000 under HRA Contributions. These increases raised the General Fund Revenue for option #3 to $1.697.400. Again the staff stressed that this projection is not the most realistic of the three that have been provided. e The City Administrator discussed the Appropriation Summary page with the Council. It was noted that this appropriation request had already been refined through discussions between the department heads and the City Administrator. The proposed appropriations total amounted to $1.764.300. This reflected a 21.2% increase over the adopted 1987 City Budget. This amount compared to Revenue Option #2 shows a gap of $96.900. The Administrator indicated that there are other potential reductions in some of the expenditure departments. that when totaled could approach the $45.000 level. The Council then requested a review of each of the departmental budget requests. The MAYOR AND COUNCIL budget showed a $6.550 increase over 1987. This increase was due mainly to Cable T.V. franchise fees going up. along with the salary increase authorized by the Council in 1987. plus additional funds being allocated for conferences and schools as the League of Cities annual conference is in the Twin Cities in 1988. e