Workshop Item: 1 - Joe Huss, Finance Director
Title
2013 GENERAL FUND BUDGET UPDATE
Background
On September 6, Council adopted the preliminary General Fund Budget and Tax Levy for Certification to the County. The proposed budget totaled $24,193,050 and included $489,477 in unidentified balancing provisions, and a $500,000 draw of unrestricted reserves. It was acknowledged that the balancing provisions could take the form of additional, non-tax levy revenue; expenditure reductions; additional use of unrestricted reserves; or a combination of the three sources.
As reported to the Council at their Workshop on October 25, from September through the end of October, staff refined the budget and implemented $348,598 in expenditure cuts and added $42,910 in non-levy revenue, thereby reducing the deficit to $97,969.
Throughout November, staff has worked to identify further balancing measures. The balancing measures included adding $50,000 in revenue and reducing expenditures by $109,370. The specific adjustments for Council consideration include the following:
Additional Revenue
· Building permit fees - $25,000
· Plan review fees - $25,000
Expenditure Reductions
· Staffing reductions - $56,370
· Remove funding for North Metro Mayors - $28,000
· Remove funding for BB4 fireworks - $25,000
The above adjustments also provide the opportunity to reduce the 2013 reserve draw by $60,000, thus requiring only $440,000 to be drawn from reserves.
Recommendation
Council consideration of the balancing provisions outlined above and further direction regarding final budget approval.