6.0. SR 09-06-1994 - Laserfiche WebLink

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. Regarding potential cuts, the following items are suggested: . $ 8,000 - transferring of expenses to the EDA fund (personnel, video taping expenses, and Elk River pins) . $12,000 - delay hiring some of the $80,000 worth of new 1995 employees · $15,000 - small cuts throughout most of the City departments . $ 5,000 - by either purchasing now, cutting, or using undesignated reserves for the police vehicle VCR capital outlay request The above items equal $40.000 and further reduces the budget gap to $104,000. If the EDA transfer is to take place, this should be reviewed and accepted by the EDA at its 9/12/94 meeting. Other potential cuts include the following: . . $10,600 by reducing 1995 employee wage increases...another City Council Contingency cut . $ 5,000 from the ice arena contribution request . $ 1,500 from the Fire Department retirement fund contribution (no contribution for the Chief) These cuts of $17.100 will leave the City with a budget gap of $86,900. It seems apparent that the City must generate more revenues. One important source is from the Utilities department in order to help offset general City expenses associated with our growth and development. Our City growth and development provides more revenues for the Utilities and we need more funds to manage our development. The Utilities contribution to the City General Fund in the amount of $72,000 has not changed for eight years (since the 1988 budget). A "round" number to look at for an increase would be about $36,000. This should be requested from the Utilities and we may also need to combine this increased contribution request with establishing a percentage contribution from the Utilities based on gross revenues. Until this request is authorized by the Council and accepted by the Utilities, this $36,000 reduction in the General Fund gap should be placed in the City cash flow reserve transfers (new total of $56,000). Please note that this $36,000 should not be in the cash flow amount in the fmal budget and, if additional revenues are not received from the Utilities, then additional cuts in this amount need to be considered. If this additional revenue is obtained from the Utilities, the new budget gap would become $50,900. .