City Budget 2005

By Marty Blum

Our general fund is using reserves, but there is a plan to control the spending, repay the reserves while keeping all other reserve funds, including money for disasters.

The goal is to balance the City's general fund budget in the next fiscal year, but to maintain a reasonable capital budget, and in the next three years to have a balanced general fund plus capital budget.

Numerous adjustments to the general fund budget have already been made, including elimination of a number of positions. However expenditure growth has continued to outpace growth in revenues resulting in the continued use of general fund reserves. It should be noted that reserves accounts other than the general fund reserves remain healthy and untouched.

About $1.0 million in cuts have been made in this fiscal year, and we will make $1.3 million in cuts next year, a total of $2.3 million resulting in a balanced general fund budget for next fiscal year.

The financial plan continues to project the use of reserves for capital programs through fiscal year 2008, I believe it is vitally important for the City to protect its assets by maintaining a reasonable capital progam. Elimination of the capital program results in cost deferred and higher costs in the future.

General fund reserves will be replenished back to policy levels from two sources: any favorable year-end budget variances that exceed projections, which is likely, and the control of costs to allow revenue growth to outpace expenditure growth.

Signed: Marty Blum