Laserfiche WebLink
! _ 'I / ' : 46 , ZL �fa2tf ��G ei <br /> TO: Mayor & Council <br /> FROM: Don Brager, Finance Director - Treasurer <br /> DATE: January 9, 1991 di), <br /> SUBJECT: Previous State Aid Cuts <br /> Pursuant to a request from Mayor Linke I have reviewed previous <br /> cuts in State Aids experienced by the City. The following are the <br /> cuts the City has had: <br /> 1) 1982 - $82, 000. Of this amount $65, 000 was a reduction of <br /> Local Government Aid(LGA) which was a 15. 1% reduction in the <br /> amount of LGA certified by the Department of Revenue to be <br /> received in 1982 . The remaining $17, 000 was a reduction of <br /> Homestead Credit Aids. Homestead Credit Aids are allocated to <br /> Funds whose activities are financed in part by the property <br /> tax levy: General, Forestry, and Debt Service. The General <br /> Fund's share of this reduction in Homestead Credit Aid was <br /> $13,551. Total loss of State Aids by the General Fund was <br /> $78, 551 which was 6.2% of that year' s General Fund budget. <br /> 2) 1990 - $31, 159 . This was a reduction of 1.5% of the amount of <br /> LGA certified by the Department of Revenue to be received in <br /> 1990. It represented 1. 1% of that year's General Fund budget. <br /> During the Fall & Winter of 1985 and the Spring of 1986 the State <br /> was facing a revenue shortfall and there was talk that LGA would <br /> be cut in 1986. The General Fund budget was reduced by $78, 000 or <br /> 3 . 7% in anticipation of that reduction. LGA was not reduced and <br /> subsequently the City's budget cuts were restored. <br /> State certified LGA for 1991 is $615, 000 and Homestead Credits <br /> are estimated to be $250,000. Those amounts represent 30. 8% of <br /> the 1991 General Fund budget. Council has designated $130, 000 of <br /> the fund balance of the General Fund for revenue shortfalls. <br /> a amoun is o o e - - • - -pects to receive <br /> in 1991. In addition the City' s policy on designations of General <br /> Fund fund balance provides for a designation for contingencies of <br /> $283, 000 for 1991 which would be available for appropriation for <br /> budget shortfalls caused by State Aid reductions. <br /> While these monies are available for reductions in State Aids <br /> and/or emergencies their use is only a short term or "band aid" <br /> approach in the event of a permanent reduction in State Aids. <br /> Should the Legislature authorize a permanent reduction in State <br /> Aids alternative revenue sources and/or reductions of <br /> expenditures should be considered for the long term. <br /> DB/hs <br /> cc: Acting Clerk-Administrator & Department Heads <br /> cc: Samantha Orduno <br />