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<br />375-B
<br />
<br />THURSDAY
<br />
<br />MAY 22, 1980
<br />
<br />Page 29 Traditional turnover of Police, according to Mr. Grubbs,
<br />will more than offset the $14,370. 14,370.00
<br />
<br />Page 104 Suggest we delete $6,000 Landscape Architect this year 6,000.00
<br />
<br />Page 112 Suggest we reduce General Fund Emergency Account to
<br />$25,000 the same figure used for last several years. 10,000.00
<br />
<br />Page 137 -- Electric Deprecriation - Expansion Program is now
<br />budgeted at $240,000 and I understand that replacement of
<br />broken wheel will be much less than anticipated. Suggest
<br />we reduce to $200,000, 40,000.00
<br />
<br />Page 139 -- Suggest we reduce Electric Reserve for contingencies to
<br />$10,000 the same figure used for last several years.
<br />
<br />40,000.00
<br />
<br />Total Adjustments
<br />
<br />181,028.00
<br />
<br />Needed to Balance
<br />
<br />118,972.00
<br />
<br />Discussion of Long-Term Objectives:
<br />Traditionally, the General Fund Expenses of Martinsville have been greater than
<br />General Fund Revenues. The Shortfall has been plugged with revenues from two
<br />sources: (1) transfers from the Electric Department and (2) using part of General
<br />Fund Surplus generated in the previous year.
<br />
<br />The following chart illustrates that General Fund Revenues, excluding opening
<br />balances and Electric Department transfers, have kept pace percentage-wise with
<br />the growth in General Fund Expenses:
<br />
<br />General Fund Revenues
<br />Excluding Opening Balances
<br />. and Electric Department
<br />Transfers -- Including
<br />~evenue Sharing
<br />
<br />General Fund Expense
<br />Growth Including
<br />Revenue Sharing
<br />Expenses -- Including
<br />Central Stores
<br />
<br />80-81 Budget
<br />79-80 Budget
<br />78-79 Budget
<br />77-78 Budget
<br />
<br />12,608,511 + 10%
<br />11,426,361 + 6%
<br />10,776,465 + 9%
<br />9,904,889
<br />
<br />13,878,946 + 11%
<br />12,521,570 + 6%
<br />11,821,464 -4- 6%
<br />11,166,574
<br />
<br />The main reason why Martinsville has operated without a tax increase for the past
<br />five years is that we have been able to doa combination of two things: (1) hold
<br />percentage expense growth in line with revenue growth (2) generate enough surplus
<br />at the end of each year by under-estimating revenues or over-estimating expenses
<br />to plug the shortfall between General Fund revenues plus Electric Department
<br />Transfers and General Fund Expenses.
<br />
<br />1'-0 illustrate:
<br />,
<br />
<br />Shortfall
<br />General Fund Expenses
<br />over Revenues
<br />
<br />Surplus used
<br />to Balance'
<br />Shortfall
<br />
<br />Electric Transfer
<br />used to Balance
<br />Shortf all
<br />
<br />80-81 Budget
<br />79-80 Budget
<br />78-79 Budget
<br />77-78 Budget
<br />
<br />1,270,435.00
<br />1,095,209.00
<br />1,044,999.00
<br />1,261,685.00
<br />
<br />784,000.00
<br />676,490.00
<br />344,999.00
<br />760,892.00
<br />
<br />486,435.00
<br />418,719.00
<br />700,000.00
<br />500,793.00
<br />
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