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<br />TUESDAY, APRIL 14, 1987 <br /> <br />.-- <br /> <br />Finally, in the General Fund, if there were no increase in the transfer <br />from the Electric Fund, and if the Budget were to include the $600,000 of <br />unappropriated surplus which Mr. Brown considers prudent, a total reduction <br />in expenditures of $669,770 would be required or approximately a 3% <br />reduction in the General Fund proposed budget. In the alternative, a 16% <br />increase in real estate taxes would be required to achieve this result on <br />top of the 8% increase which is already in the Budget if the millage rate <br />is left at its current level. In my opinion, a tax increase of this magni- <br />tude would be totally unacceptable to our citizens. Therefore, I believe a <br />3% reduction in proposed expenditures from the General Fund is required. I <br />believe this reduction should be achieved mainly through the elimination of <br />desirable, but unnecessary, equipment and service acquisitions and only to <br />a minor extent through reduction of personnel or reduction of pay increases <br />which are already proposed at very responsible levels. <br /> <br />/'"'"'" <br /> <br />Finally, the practice of appropriating from the General Fund accumulated <br />surplus to balance the budget is the basic action which has created the <br />illusion that the City can live beyond its means. Even with the recommen- <br />dations I have set forth above, $523,599 of that accumulated surplus would <br />be appropriated. This practice cannot be continued if this City is to be <br />run on a fiscally-sound basis. I believe we should view this Budget year <br />as the first in a weaning process which should be continued in future years <br />so that each year we appropriate no more than one-half of the remaining <br />General Fund accumulated surplus to balance the budget. Through this <br />process, the utilization of these funds would become a less and less <br />significant portion of our budget until, within the reasonably near future, <br />the practice could be terminated altogether and the City would finally be <br />living within its means on a fiscally sound basis. Thank you. <br /> <br />* * * * * * * <br /> <br />,-....-.... <br />