12-01-1993 Council Minutes2 - Laserfiche WebLink

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TOj Mayor and City Council FROM:Ron Moorse, City Administrator X DATE:November 24, 1993 Op SUBJECT: Revised 1994 Proposed Budget °%o The revised 1994 proposed budget is attached. The revised proposal reflects efforts to control costs through a number of cost reduction initiatives. The goal is to limit the expenditures necessary for the general operation of the city to a minimum amovnt, to enable the city ,o address significantly increased debt service needs. The cost reduction initiatives include the elimination of the police K-9 program, a reduction in the street overlay program, and a reduction in funding for consultant services for special projects. Total Budget and Tax Lew , r, ^ .u o The total proposed budget including the General Fund, the Sewer, Water, and Golf operating bi'’gets and Debt Service is $5,394,416 versus $4,996,067 in 1993. This is an increase of $398,349 or 8 0% The tax levy needed to fund this budget is $1,976,636 versus $1,829,473 in 1993. This is a $147,163 or 8.0% increase over the 1993 levy amount. General Fund Budget ^ The two expenditure areas most affecting the tax levy are tne General Fund expenditures and Debt Service expenditures. The General Fund budget is $3,152,666 versus $3,132,572 in 1993. is a $20,094 or .6% increase over 1993. The tax levy required to fund the General Fund Budget is $1,633,165. This is an $80,248 or 5.2% increase over 1993. The levy increase is greater than the $20,000 expenditure increase because the transfer of interest revenue from the Building Fund to t.ne General Fund has been reduced from $84,695 in 1993 to $0 in 1994. This was done to enable the full Building Fund interest earnings to be used to pay the deot service on the HRA (city facilities) bonds. The total amount budgeted for debt service for 1994 is $1,247,500. This is a $364,074 or 41% increase over the 1993 budget. This increase is due to three items: 1.The first principal payment is due on the Stubbs Bay sewer project bonds ($85,000). 2.The first principal payment is due on t)»e HRA bonds ($145,000). 3 .The total remaining principal on the 1980 ^nds will ^ paid when these bonds are called in 1994. This is a one time cost to close out the funds ($150,000).