09-29-1997 WS - Laserfiche WebLink

Home Browse Search

September 26, 1997 111 To: Honorable Mayor y and City Council From: Chuck Whiting, City Administrator Re: September 29, 1997 City Council Work Session Staff and I have put together budget option considerations for the Council's discussion on Monday evening. Based on direction from the last budget meeting, staff focused on options that could negate the loss of revenues from the elimination of the franchise fee, and a possible reduction in the 6% levy increase. To eliminate both would mean a reduction of approximately $325,000. The apparent conclusion is that to achieve such a full reduction in these revenues City service levels will have to be impacted. Some portion of that total may be achieved without effected service levels, such as 0% personnel pay adjustments, but those actions may not be conclusive by Council action alone or have adjoining impacts on the revenue side of the budget. In all, discussion of the actions that could or may be taken is necessary for appropriate policy directives and understanding. Addressing the budget options as presented should provide an adequate starting point. As a practical aside, I would ask the Council to consider the following time frame in moving through this phase of the budget process. First, I think it is necessary for the Council to go through the entire documentation provided Monday evening, and attempt to determine where staff should focus its limited time to addressing expense reductions, revenue increases, other cash flow related options and outside non-budget matters that will eventually effect the City's ability to fund its operations in the • future. If this cannot be concluded Monday evening, another session Tuesday evening would be suggested. Second, assuming this work can be concluded with clear enough policy directives, another budget session should be set up for October 20. The goal of that meeting would be to review staff work done in the next three weeks to address the Council directives of this Monday evening, coordinate with the effected stakeholders from those directives, and assess the status of the budget relative to the need for franchise fee revenue and property tax revenue. This is important in order to coordinate with Northern States Power if all or some of the franchise fee is to be reinstated in 1998. NSP has asked me to inform them prior to the end of October. So third, if the franchise fee is to be reinstated, Council action at the October 27 meeting would be asked for. I think this progression of meetings, discussions and attention will meet the needs of the Council and staff in putting together the 1998 budget. Recognizing that the options included in this packet will raise attention of employees possibly effected, I have discussed the nature of the Council meeting and the need to have the discussion take place even where possible cuts or attention to particular work may be uncomfortable. The same may be said of groups outside of City Hall either in the community or beyond and the Council may want to give some consideration as to how and when to address possible cuts with their services if necessary. It may be prudent to devote some time at the October 6 regular work session to do this if effected parties show interest in the Council's discussion. Have a good weekend and see you 6 p.m. on Monday evening. •