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<br />/ ~'\( <br />( )j <br />tfl}{ River <br /> <br /> <br />ITEM 8. <br /> <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />MAYOR & CITY COUNCIL <br /> <br />FROM: PAT KLAERS, CITY ADMI~R <br />DATE: SEPTEMBER 9, 1994 ~ <br />SUBJECT: BUDGET WORKSESSION " <br /> <br />The City Council must approve a number of motions and resolutions at this <br />meeting in order for staff to prepare the necessary material for certification <br />to the County by 9/15/94. Please see the attached memo from the Finance <br />Director regarding these motions and resolutions. <br /> <br />. <br /> <br />The 8/29, 8/30, and 9/6 City Council budget worksession minutes outline how <br />the City budget has gotten to its current status. In review of my 9/1 memo <br />and Council decisions on 9/6, and excluding any use of City cash flow monies, <br />excluding the proposed $10,600 cut in the Council Contingency fund (page 5 <br />of the 9/1 memo), and excluding any increase in Utilities contribution to the <br />City, then the gap that we "are dealing with between proposed expenditures <br />and available revenues is $117,500. <br /> <br />Most of the budget balancing techniques that have been used by the Council <br />include use of equipment reserves in 1994, reducing some reserve and <br />Council contingency requests, financing items through the 1994 General <br />Fund Budget, delaying the hiring of new employees in 1995, shifting <br />expenses to the EDA, raising "growth" related revenues and increasing liquor <br />store transfers. <br /> <br />It should be noted that no capital outlay items have been cut from the budget <br />but some capital outlay items have been financed in 1994 to reduce the <br />budget gap. Also, $15,000 in smaller cuts throughout each individual <br />department has been accepted by the Council. These cuts will be made <br />mainly in the supplies, contractual services and conference categories. <br /> <br />I believe it will be necessary for the City to obtain additional revenues, to <br />make substantial cuts, or to raise additional tax revenues in order to balance <br />the budget. By raising additional revenues I am specifically referring to an <br />increased contribution from the Utilities Commission. If the Council is not <br />united in this Utilities request, then we should be prepared to make <br />. additional cuts or raise additional tax revenues, or use the cash flow reserve. <br /> <br />P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />