Laserfiche WebLink
MEMORANDUM <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />Mayor and City Council <br /> <br />Pat Klaers, City A~~f~~ <br />September 9, 2002 <br /> <br />SUBJECT: Tax Levies <br /> <br />Item #s 5. I. - 5.5. <br /> <br />At the August 12, 2002 budget worksession the City Council reviewed general fund <br />expenditures that exceeded $7.9 million. Unfortunately, general fund revenues were less than <br />$7.6 million and this resulted in a budget gap of $362,100. <br /> <br />At the August 26, 2002 budget worksession, numerous changes were made to the draft budget <br />that was reviewed on August 12 (see attached August 26, 2002 memo). These changes <br />included: adding revenues to the general fund (this included a change in the surface water tax <br />levy and lockout fees); some requests for additional staffing were eliminated or reduced; some <br />program expenditures were decreased; some miscellaneous expenditures were eliminated; and <br />some items (computers) were proposed to be purchased in 2002 rather than in 2003. These <br />changes resulted in a general fund budget gap of $79,100 and this budget gap does not include <br />any revenues from a gas franchise fee. If a gas franchise fee is to take place in 2003 then this <br />budget gap would be significantly reduced as the gas franchise fee would be applied to the <br />street program and then the street levy could be moved into the general fund. The above <br />changes that resulted in a $79,100 budget gap shows revenues at $7,653,950 and expenditures <br />at $7,733,050. <br /> <br />It should be noted that if expenditures do not change from the above preliminary number of <br />$7,733,050, then the budget will be going up 7.17%. This would be the lowest budget increase <br />since 1993. The only way that this is being accomplished is through moving capital <br />expenditures out of the general fund into equipment certificates and reserves, and by adding a <br />very limited amount of new positions and additional hours for existing staff. <br /> <br />Changes in the budget are still occurring and will continue to take place until the budget and <br />levy are set in December following the truth in taxation public hearing. In addition to <br />balancing the 2003 budget, the city needs to consider what the 2003 Legislature may do to <br />local government aids (LGA). It is expected that there will be a state budget defidt and that <br />LGA will be cut in 2004 and we hope that aids are not cut or reduced in 2003 after the <br /> <br /> <br />