Minutes 04/18/1988 - Laserfiche WebLink

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MONDAY, APRIL 18, 1988 $12.2 million. At the moment, the proposed 1988-89 budget anticipates revenue of $38.6 million and spending of.$42.8 million, which--if adopted--will have the effect of reducing the 07/01/88 surplus of $12.2 million to $8.0 million. It is .obvious that a trend such as this can not be allowed to continue. In spite of this conclusion, I do not feel that Council should raise any taxes or rates at this time. Instead, I prefer cutting expenses, but let's do it (more) equitably. Would you support a five percent (5%) across-the-board reduction in all proposed budgets (i.e., budget requests)? If so, this would reduce the proposed $42.8 million (on the expense. side) by $2,142,383 and would maintain the year-end surplus well above the recent average. I urge you to look at that lastbottom-line figure, that you decide how much it should be, and that you then decide what action should be taken. When asked to state his position on Mr. Cole's "across-the-board" query, City Manager Brown indicated that he would be quite concerned if an arbitrary percentage reduction is applied, particularly when some budget expenses are fixed. In pursuing this question, members of Council suggested that an "across-the-board" percentage reduction might not apply to individual line items but to overall departmental budgets. City Manager Brown urged, however, that Council, before ordering any across-the-board reduction, review and further consider the programs (both on-going and proposed) to be financed by his recommended budget, as well as await presentation by the City School Board (on April 19th) of new information pertaining to the School Board's requested 1988-89 budget. Meanwhile, City Manager Brown expressed his opinion that citizens of Martinsville can generally afford to pay more (than they are now paying in taxes and for services) to support services and programs and, too, that the City needs to expand its revenue base (such as by imposing fees, as now imposed by some other Virginia cities, for refuse collection/disposal service and/or other services). Councilman Cole then pointed out that he has supported programs but the question now arises as to what the City can afford.