Minutes 05/18/1976 - Laserfiche WebLink

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~lnl J TUESDAY MAY 18, 1976 Councilman Greene then offered the following statement of observations and/or recommendations pertaining to present and future budgetary problems: I realize that the detailed budget proposal has not been prepared, but I have a few general observations concerning the tentative budget estimates that have been presented to us by Mr. Noland and Mr. Yeaman. First, the good news: The surplus of the Electric Department has increased from $64,000.00 to $490,000.00 not including the refund from APCO. The deficit in the General Fund has decreased from $240,000.00 to $101,000.00. The Water and Sewer Funds showed a profit of $24,000.00. As late as January 27th of this year, Mr. Yeaman estimated a loss in these funds of $25,000.00. Now the bad news: We are facing another budget crisis. In the tentative budget summary prepared by the City Administrators, they suggest the following methods to pay for expenses: An increase in the electric department transfer to the General Fund of $214,000.00 over this year's transfer. Use of the entire $312,000.00 APCO refund. A 15C real estate tax increase amounting to $170,000.00. A change in auto assessments which will bring in $60,000.00. $4,500.00 more Revenue Sharing Funds than we used to balance the budget this year. These five items alone account for $761,000.00 additional revenue to meet tentative appropriation requests. If we approve these figures, what will happen in next year's budget session? We won't have a $312,000.00 APCO refund next year. We won't have a $214,000.00 increased transfer from the Electric Department to the General Fund. These two items alone total over $500,000.00. Where will the money come from? Our population is declining, our tax base is not keeping pace with the rise in expenses. State and Federal regulations have forced financial