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ATTACHMENT A <br /> <br />April 22,2003 <br /> <br />The Honorable M. Gene Teague, Mayor <br />and Members, Martinsville City Council <br />P.O. Box II12 <br />Martinsville, Virginia 24112 <br /> <br />Dear Mayor Teague and Members of the City Council: <br /> On behalf of the administration of the City of Martinsville, I am pleased to recommend a <br />balanced Fiscal Year 2003-04 General Fund budget totaling $24,962,260, a 4% ($1,036,48I) <br />reduction from the current year's revised General Fund budget of $25,998,741. <br /> Likewise, I am recommending a balanced Enterprise Fund budget which totals $20,973,49I, a <br />.04% increase ($8,229) over the current year's revised Enterprise Fund budget of $20,965,262. <br />With the strategic plan established by the City Council in October of last year as a backdrop, <br />the recommended budget plan attempts to move us closer to meeting Council's financial goals <br />while remaining focused on meeting the essential needs of the community. <br /> In the development of the proposed budget plan, the following goals were set and were <br />shared with the City Council at your February 13, 2003 pre-budget work session. <br /> · Increase the June 30, 2004 fund balance by an additional one percent; <br /> · Address essential operating increases; <br /> · Reduce the projected landfill revenue deficit; <br /> · Address cash flow needs to avoid short-term borrowing; <br /> · Further reduce Enterprise Fund transfers toward meeting the goal of ensuring a <br /> positive net income; and <br /> · Replace approximately $618,416 of the projected FY '03 fund balance which will <br /> result from either one-time savings or the receipt of unanticipated revenues. <br /> <br /> Fund Balances and Cash Flow <br /> The importance of moving aggressively to meet our goals in these financial areas was <br />discussed at your January 14, 2003 regular Council meeting where I made the following <br />observation. <br /> Historically, the City has viewed net income derived from its enterprise operations as simply <br />another revenue source available to offset expenditures in its budgeting process. Over the years, <br />the use of net income from the Enterprise Funds has been sufficient to offset General Fund <br />expenditures and leave a surplus of funds to pay cash for one-time capital improvements/repairs <br /> <br /> <br />