Minutes 04/19/1994 - Laserfiche WebLink

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April 19, 1994 down budgeted expenditures General Fund by $75,260 or 1% for the coming year as compared to the prior year. Even with 7 new public safety positions recommended, the budget still reflects a reduction of 28 employee positions overall when compared to the current fiscal '94 year -- quite an accomplishment. Again, I applaud the determined efforts of the City department heads. The success of our collective effort is abundantly apparent. Because of this commitment, the proposed budget does not recommend a real estate tax increase, and fee and rate increases are modest, and mostly associated with Federal and S~ate mandates. As I have just indicated, the budget does not contain a recommendation for a real estate tax increase. However, it is incumbent upon me as your Chief Executive Officer to discuss our City's fiscal condition. First, let's exam/ne some trends that I expect to be relevant over the coming fiscal year: o Our fiscal position will improve only slightly over the next fiscal year -- possibly the next two fiscal years o Without careful management, General Fund expenditures will exceed revenues o Various fee increases will continue to be necessary over the next two fiscal years due to unfunded Federal/State mandates o The legitimate needs of public education (and Federal/State mandates) will increase the costs of government o The Capital needs of the City will continue to require debt service increases o Net revenues will remain flat Just recently our City was rated by the leading bond rating agencies. I am pleased to report that we were able to maintain our current ratings, especially when many cities across the U.S.A. have been downgraded. I believe it important, however, to share some of their assessment comment to set the context as well as consider its implication: o Components of City's economic base have been relatively stagnant o Assessed values have shown only modest growth o Financial position is adequate o General Fund balance is only 4% of operating revenues o Good budgetary control despite flat revenues in recent years o Debt position is manageable, pay out is aggressive o Debt ratios are higher than national median o Fiscal stability has been maintained by downsizing We have been fortunate over the last four budgets. We have not raised the real estate tax, our fee increases have been modest, our employees have received pay.and benefit increases while the work force has been reduced by more than 130 positions at a taxpayer savings of several millions of dollars. We have been and continue to be successful in our determination to retool our .municipal organization. We are leaner and more efficient. We have. difficult choices ahead, but I am confident that the context is set and the depth of your understanding is more complete. We are now ready for the challenge.