Agenda Packets - 1986/04/21 - Laserfiche WebLink

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MEMO TO: MAYOR AND CITY COUNCIL i FROM: CLERK-AUMIN[ti7RATGk ty DATE: FEBRUARY 5, 1966 �J SUBJECT: CONTINGENCY PLAN FOR REDUCTION OF 1986 STATE AIDS Attached to this memorandum please find a copy of a memorandum from Finance Director Brager dated January 30, budget 1986 outlining the details of the Governor's proposal designed to respond to the expected revenue shortfall for the state and an analysis of the Governor's proposals as it reletes to the contingency plan approved by the Council in December of 1985. Mr. Brager's memorandum indicatub that based upon an Action Alert from the r.eaque of Minnesota Cities the City can the Governor's proposal expect total reductions pursuant to the further in the amount of $63,172. Mr. Brager makes made by Point that pursuantto news reports and statements it is that the Legislature legislative leaders, unlikely the Governor's proposal to reduce school aids will approve and more than likely make larger reductions in the state budget and local government aids in order to avoid any the reductions in school aids. Such a decision could bring level nearly total impact of reductions to the City to a the equal with the 5115,302 level currently contained in City's contingency plan. Bas3d on those preliminary findings, I have advised department heads that a freeze has been placed on all purchases curently contained within the City's contingency plan. I would ask Council's concurrence with this order and approval of a request that I be authorized to approve modifications to the contingency plan by individual it the is departments where an item currently contained plan department's replaced by an item contained within that budget only which is equal in value. This would allow department heads to reevaluate their budgets on an on -going basis during the period of time that a decision is being in local made by the Legislature with regard to redactions City's government aids thus avoiding a stagnation of the efforts to provide the level of services expected by our residents as well os undertaking actions to improve our operations to the ,iverall benefit of the community. RECOMMENDATION: staff would recommend that Council approve the direction of the Clerk-Adci;;istrator to department heads that a freeze is placed on all items currently contained from within the contingency plan outlined in the memorandums 26, 1985 and Finance Director Brager dated November to January 30, 1986 and authorize the Clerk -Administrator approve modifications to the plan whereby a department 1986 substitutes an itein currently contained within their budget for an item of equal value contained within the contingency plan. DFP/mjs Attachments