Agenda Packets - 1985/08/05 - Laserfiche WebLink

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MEMO TO: MAYOR AND CITY COU r FROM: CLERK-ADMINISTRAT DATE: JULY 23, 1985 SUBJECT: 1986 REVENUE SHARING RECOMMENDATIONS As you know, the Reagan Administration included in its FY 1986 budget proposal the elimination of funding for the last year of the current three year authorization for Federal Revenue Sharing. This proposal is currently being debated by both the House of Representatives and the United States Senate and besides there being disagreements in both Houses with respect to what to do with Revenue Sharing, the Bills being considered by the two Houses are in conflict with each other and more than likely a conference committee will be appointed to resolve those disagreements. Staff would anticipate that a resolution to the Revenue Sharing issue will not occur until after. the City's 1986 budget is adopted which must occur no later than October 7th. In reviewing the various options available to the City with respect to the budgeting of Revenue Sharing, Finance Director Brager and I agreed that the most conservative of the options would be the preferred choice as any dependence upon part or all of the Revenue Sharing allocation would place the City in a less than acceptable or desireable position should Congress ultimate- ly determine not to fund Revenue Sharing during 1986. Therefore, it is the recommendation of Finance Director Brager and myself that the City not budget the receipt of Revenue Sharing monies in its fiscal year 1986 budget. We would, however, recommend that the Council hold the required Revenue Sharing hearing which was tentatively scheduled for 7:40 p.m. on the evening of September 9, 1985. The purpose of this hearing would be to receive public input as to programs or projects to be funded by Revenue Sharing should revenues be received. It would be Staff's position that should Congress approve a partial or complete funding of Revenue Sharing, as was done in 1985, the monies be used to finance a portion of the Fire Department's contract costs and the General Fund money freed up as a result of this be used for capital expenditure purposes. As the budget would be adopted prior to our determining whether or not Revenue Sharing money would be available, any money freed up as a result of the receipt of Revenue Sharing could be used to finance the purchase of those capital items which could not be purchased as a result of revenue limitations, to fund other activities determined appropriate by the City Council, or designated as a carry-over into fiscal year 1987 for funding capital expenditures in that budget year. RECOMMENDATION: Staff would recommend Council set a public hearing for the Revenue Sharing budget for 7:40 p.m. on the evening of September 9, 1985 and tentatively commit any Revenue Sharing monies that might be received in fiscal year 1986 for funding a portion of the Fire Department's contract costs. DFP/mjs