5.4D. SR 07-22-2002 - Laserfiche WebLink

Home Browse Search

Item 5.4.D. C~ty ~ MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor and Council Pat Klaers, City Admi ,n~at~or~.~ July 22, 2002 2003 Budget Issues Finance Director Lori Johnson and I have been meeting with the department heads for the past two weeks to review their budget requests. These requests are still being evaluated and it is too early in the process to have figures available for the City Council discussion on Monday. However, on Monday we should be able to give the Council a preview as to what to expect for the Monday, August 12, 2002, budget worksession. At this time we do not know what our levy limit amount is going to be for next year but we think it will be a fairly small increase, as the cost of living index or inflationary factor has been low. Also, we will have to use the equipment certificate approach for funding some of our needs in 2003. The level last year (for 2002) was $273,500 but the total requests for equipment are higher than what we saw last year. The status of 2002 year-end funds being available for equipment requests in 2003 is unknown at this time and most likely will not be known until after the budget and levy is approved in September. Personnel services is the single largest budget category. Additional employees (and additional hours for some employees) is scheduled to be briefly discussed earlier in the evening on Monday night. When 70% of the General Fund expenditures are for personnel it is fairly clear that if we want to control our budget we need to control expenditures for staff additions. In terms of revenue for 2003, additional taxes will be the number one source of additional revenue. The growth related revenues (building permits, plan check fees, plumbing/heating permits) are currently in the budget at a very high level. It does appear that we will reach the 2002 projections but with the economy being so uncertain it is extremely difficult to project much, if any, of an increase in these revenue sources. Additionally, the 2002 court fine revenues have not been as expected and this has previously been discussed with Coundl. We expect a better year in 2003 due to efforts by the county to collect fines but the revenue amount in the budget will go down.