2009 Budget Update
On February 8th I summarized the need for budget reductions as follows:
“We will be addressing the third error of $646,800 in the immediate future. A truly balanced general fund is only $1,523,449 away assuming the recession does not deepen and revenue projections hold. The Council and City Manager Simmons are poised and determined to make 2009 a successful year.”
On March 6th the Council met in a retreat setting at the Recreation Center to discuss budget reductions. The numbers above were revised by the new Finance Director prior to the meeting to $181,226 in place of $646,800 and $926,649 in place of $1,523,449. Utilizing newer information he was able to correct some omissions and over statements in the projected expenditures and revenues.
On the revenue side, the accrual figures for Jan/Feb’s Franchise Fees were included and the Investment earnings were reduced. Net gain of $29,000. The net Sales Tax receipts were increased by $9,500 and smaller increases in revenues were added.
On the expenditure side, accrued expenses were added to the Finance, Parks/Recreation and Public Works accounts amounting to $94,000. Other accruals listed on 1/29/09 were reduced. The anticipated 08 carryover funds to the Capital Improvement fund were added for an additional cost of $1,032,000. All of these expenses were offset by grant funds that were not included on 1/29/09. They will be received in 2009 but credited back to 2008 projects. The grant reimbursements amount to $1,442,816.
The discussion on the 6th gave the City Manager some ideas as to where reductions might be located. He is to report back to Council in the near future. Finding the money to make up the $181,226 could be easy considering we have a general fund contingency of $200,000 that is tentatively marked for other activities but not committed. Hopefully he will find other expenses that can be reduced as a result of some increased efficiencies.
After these reductions are made we will be back to where we thought we were when the 2009 budget was adopted on December 13th. The big hit we’ve already experienced in Sales Taxes during January is yet to be addressed; as is whatever lies ahead.
My solutions? The City is over staffed. Additionally, even during these times, it is still taking a Cadillac or Lexus approach to most projects and services. Call it downsizing or rightsizing; but it must be done.
In the previous seven years the general fund was balanced only once and that was the year the entire street program was cancelled, the voters turned down the first recreation building project and the Mayor was up for re-election; 2005. I want a balanced budget now and every year!
“We will be addressing the third error of $646,800 in the immediate future. A truly balanced general fund is only $1,523,449 away assuming the recession does not deepen and revenue projections hold. The Council and City Manager Simmons are poised and determined to make 2009 a successful year.”
On March 6th the Council met in a retreat setting at the Recreation Center to discuss budget reductions. The numbers above were revised by the new Finance Director prior to the meeting to $181,226 in place of $646,800 and $926,649 in place of $1,523,449. Utilizing newer information he was able to correct some omissions and over statements in the projected expenditures and revenues.
On the revenue side, the accrual figures for Jan/Feb’s Franchise Fees were included and the Investment earnings were reduced. Net gain of $29,000. The net Sales Tax receipts were increased by $9,500 and smaller increases in revenues were added.
On the expenditure side, accrued expenses were added to the Finance, Parks/Recreation and Public Works accounts amounting to $94,000. Other accruals listed on 1/29/09 were reduced. The anticipated 08 carryover funds to the Capital Improvement fund were added for an additional cost of $1,032,000. All of these expenses were offset by grant funds that were not included on 1/29/09. They will be received in 2009 but credited back to 2008 projects. The grant reimbursements amount to $1,442,816.
The discussion on the 6th gave the City Manager some ideas as to where reductions might be located. He is to report back to Council in the near future. Finding the money to make up the $181,226 could be easy considering we have a general fund contingency of $200,000 that is tentatively marked for other activities but not committed. Hopefully he will find other expenses that can be reduced as a result of some increased efficiencies.
After these reductions are made we will be back to where we thought we were when the 2009 budget was adopted on December 13th. The big hit we’ve already experienced in Sales Taxes during January is yet to be addressed; as is whatever lies ahead.
My solutions? The City is over staffed. Additionally, even during these times, it is still taking a Cadillac or Lexus approach to most projects and services. Call it downsizing or rightsizing; but it must be done.
In the previous seven years the general fund was balanced only once and that was the year the entire street program was cancelled, the voters turned down the first recreation building project and the Mayor was up for re-election; 2005. I want a balanced budget now and every year!
posted by Gene Wieneke at
7:41 PM
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