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<br /> <br />Budget Worksession <br />August 22, 2005 <br /> <br />Page7of7 <br /> <br />CONCLUSION AND RECOMMENDATION <br />If the budget adjustments as outlined in this memo come to be realized, then we will be <br />looking at a very manageable budget gap of $34,000. This can be addressed through cuts in <br />budgeted line items in a few departments. On the other hand, there is still a lot "in play" as a <br />good part of closing the budget gap is dependent upon an increase in the city NTC. <br />Accordingly, if we only see a 12 or 13% increase in the NTC, then additional cuts or <br />adjustments will be required; or if we see a 15% NTC increase, then we can add more capital <br />outlay to the budget in order to get it closer to our budget/capital outlay goal. <br /> <br />Regarding the levy, it is recommended that the City Council support a zero city tax rate change <br />for 2006 and direct staff to make budget adjustments based on the net tax capacity <br />information that we receive from the County. Another budget decision that staff needs in order <br />to prepare a balanced 2006 draft budget has to do with the capital outlay category and <br />keeping only $250,000 of these expenses in the general fund and removing $650,850 worth <br />of expenditures out of the general fund. Finally, stciff also needs direction on funding the <br />upcoming payment for the 2005 fIre truck. <br /> <br />The City Council can have a follow-up worksession on the budget on either Tuesday, <br />September 6 or at its regular worksession on September 13, 2005. Again, we need to certify <br />to the County the proposed maximum 2006 levy by September 15,2005. <br />