1983 July 18 to 1984 July 9 - Council Packets

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TO: Mayor & City Council FROM: Finance Director -Treasurer Brager DATE: July 13, 1983 RE: ESTIMATED 1984 REVENUE•. A memorandum from t.hc Clerk-A(1mi.nis U-ator and myself identifies some 1984 budget policy issues facing the City. This memorandum will address those issues and identify their impact on the 1984 General Fund budget. The State's legislators, through the Omnibus Tax Bill, made changes in the levy limit formula, the formula for the calculation of local govern- ment aids, and the special tax levies allowable to municipalities. If the 1984 General Fund budget is to be patterned after the 1983 budget the fol,inwing assumptions would be made: 1) the City would absorb the anticipated 1984 reduction in local government aid of $51,507 2) the City would not exercise the option to special levy for the forestry program 3) the City would not issue equipment debt certificates and levy for the cost of debt service to retire them 4) the two police squad cars requested would be included in the 1984 Police Department's budget Following those assumptions the estimated 1984 General Fund tax levy would be $672,784.00, an increase of approximately 86 over the 1983 levy of $619,884.00. Total estimated General Fund revenues of $1,399,034.00 would be available to offset estimated expenditures. Estimated 1984 revenues are approximately 2.8% greater than 1983 budgeted revenues of $1,360,890.00. Estimated 1984 revenues compared to first draft expenditure requests are shown below: Estimated revenues $1,399,034.00 First draft expenditure requests 1,533,781.00 Excess of expenditures over revenues $ 134,747.00 To balance the budget, reductions of $134,747.00 would have to be made from first draft expenditure requests. Those reductions amount to 9% of initial requests. Should the City exercise all of the options available under the Omnibus Tax Bill the following would occur: 1) the City would levy the amount of the reduction in local government aid from 1983 to 1984