Laserfiche WebLink
REQUEST FOR COUNCIL CONSIDERATION Agenda Section: 10.a <br /> STAFF REPORT Report Number: 93-5S4WS <br /> NEW AGENDA SESSION DATE July 6, 1993 Report Date: 7-1-93 <br /> DISPOSITION <br /> Item Description: 1994 Budget <br /> Administrator's Review/Recommendation: <br /> - No comments to supplement this report <br /> - Comments attached. <br /> Explanation/Summary (attach supplement sheets as necessary.) <br /> SUMMARY; <br /> The first draft of the 1994 City Budget is attached for Council review. The <br /> budget includes the programs, services and special staffing allotments <br /> which were discussed at the Council/Staff Strategic Planning Session in <br /> March and again at the follow-up session in April. <br /> There are several issues that must be addressed as we begin this annual, <br /> often very labor-intensive and difficult process of creating a budget for <br /> the coming year that will serve a workable guide to revenue and <br /> expenditures for 1994 . In the attached Staff Report from the City's Finance <br /> Director, Don Brager, several of the issues are outlined. I would like to <br /> take this opportunity to address some of the broader issues that will <br /> impact not only the 1994 budget, but future policy decisions as well. <br /> 1. Dependency on State Aids <br /> Approximately, 1/3 of the City's total revenue comes from <br /> various State aid programs (LGA, HACA, etc. ) . Consistently, <br /> over the past several years, this source of revenue has been <br /> reduced annually and often during the course of the budget <br /> year. While the 1993 Legislature did not raid the aid sources <br /> to cities to the extent that they have done in the past, the <br /> Governor's new power to "unallot" programs/services poses a <br /> threat to our aid package in 1993 and again in 1994 . If the <br /> State's revenue projections are down in each November, the <br /> Governor has the authority to cut programs such as LGA. <br /> I believe it to be prudent action to continue to anticipate <br /> and plan for shifts or reductions in State aid programs. <br /> While the citizen mandates are to reduce taxes, cut spending <br /> and still maintain services, the reality of it all is that <br /> cities must create and retain sufficient funds in anticipation <br /> of future funding reductions which, if not planned for, could <br /> wreak havoc on a City's a. ity to merely "maintain" services. <br /> RECOMMENDATION; 61'YY(, <br /> Samantha 0 duno, ity Admin' trator <br />