Minutes 05/24/1977 - Laserfiche WebLink

Home Browse Search

38 TUESDAY MAY 24, 1977 I have a few general observations to make about the proposed budget-- I am sure we will discuss specifics in depth in the coming days. In the early '70's the city arrived at the point where normal growth of the tax base became insufficent to pay for the yearly growth in operating expenses and Council began using windfalls from split-tax billing money and Revenue Sharing Funds, and depleting the Electric Department Surplus in order to balance the budget. Two years ago, Council took several painful measures to deal realistically with the budget by a combination of raising taxes and cutting expenses. Regrettable as these actions were, I feel they were necessary to return the city's finances to a pay-as-you-go basis. ..- Last year Council balanced the budget with no tax increase by slashing $l86,000 of expenses and using $160,000 of APCO refund money. Next year it is contemplated that Council will balance the budget with no tax increase due primarily to a $471,000 increase in General Fund Surplus accumulated by increased revenues and decreased expenses during fiscal '77, and from consolidating several funds into the General Fund. It appears to me that the city's finances are showing progress - that the city is beginning to live within its means on a year-by-year basis; however, I think it is important for everyone to realize that while we are showing progress, the city's financial problems are not solved. The fact remains that for the last several years, between $400,000 and $500,000 new revenues are required each year to balance the budget. And, I think it is important to remember this. When we balance this year's budget we must continually ask ourselves where the new revenues will come from in future years when we make revenue and expense decisions. In general, this budget contains many suggestions of merit which are consistent with Councils expressed conservative fiscal philosophy during the past two budget sessions. (l) Revenue Sharing Funds used to pay for operative expenses have been reduced from $378,000 in fiscal '75 to $164,332, a reduction of $213,668 in three years. $377,000 of Revenue Sharing Funds are proposed to be used for needed capital expenditures and retirement of $200,000 debt service, $146,000 of which is a non-recurring expense. (2) $50,000 is proposed to be appropriated to the Thoroughfare Street Program, an increase of $14,361 over last year. Hopefully, this appropriation will continue on a yearly basis. Compare this to fiscal years '74 and '75 when no appropriations were made to the Thoroughfare Street Program. (3) It is proposed that next year's budget be balanced without the use of the $l62,000 APCO Refund balance which was a one-time revenue windfall, and cannot be depended on year after year. This money will remain in Electric Department Surplus for use in future years for non-recurring capital expenditures.