Agenda Packets - 1986/02/18 - Laserfiche WebLink

Home Browse Search

MEMO TOi MAYOR V1D C 1 1 Y COUNCII. FROM: CLERK-AUMINI�PRATOR DATE: FEBRUAIiY S, 1986 SUBJECT: CONTINGENCY PLAN FOR REDUCTION OF 1986 SLATE AIDS Attached to this memorandum please find a copy of a memorandum from Finance Director Brager dared January 30, 1986 outlining the details of the governor's budget proposal designed to respond to the expected revenue shortfall for the state and an analysis of the Governor's proposals as it relates to the contingency plan approved by the Council in December of 1985. Mr. Brager's memorandum indicates that based upon an Action Alert from the Leaque of Minnesota Cities the City can expect total reductions pursuant to the covernor's proposal in the amount of $63,172. Mr. Brager makes the further point that pursuant to news reports and statements made by leoislative leader it is unlikely that the Legislature will approve the Governor's proposal to reduce school aids and mote than likely make larger reductions in the state budget and local government aids in order to avoid any reductions in school aids. Such a decision could bring the total impact of reduction: to the City to a level nearly equal with the $115,302 level currently contained in the City's contingency plan. Based on those preliminary findings, I have advised department haads that a freeze has he-n placed on all purchases curently contained within the city's contingency plan. I would ask Council's concurrence with this order and approvai of a request that I be authorized to approve modifications to the contingency plan by individual departments where an item currently contained in the plan is replaced by an item contained within that department's budget only which is equal in value. This would allow uepartment heaps to reevaluate their budgets on an on -going basis during the period of time that a decisi^n is nn;nn made by the Legislature with regard to reductions in local government aids thus avoiding a stagnation of the City's efforts to provide the level of services expected by our residents as well is undertaking actions to improve our operations to the overall benefit of the community. RECOMMENDATION: Staff would recommend that Council approve the d:eecttoon-of the Clerk -Administrator to department heads that a freeze is placed on all items currently contained within the contingency plan outlined in the memorandums from Finance Director Brager dated November 26, 1985 and January 30, 1986 and authorize the Clerk -Administrator to approve modifications to the plan whereby a department substitutes an item currently contained within their 1986 budget for an item of equal value contained within the contingency plan. DFP/mjs Attachment: