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<br /> -- --- <br /> on-going programs so that problems are not compounded next year and the City <br />e can manage its way through the process. <br /> Ms. Schue said that staff advised the council, and the council agreed, to cut <br /> programs and not make incremental cuts. She said they did make $640,000 in <br /> program cuts and there is $850,000 in unfunded capital projects, but there is <br /> nothing on the list that is pressing. She said they have the unappropriated <br /> fund balance every year and it seems the Budget Committee's proposals are a <br /> good compromise considering all the factors they had to deal with. <br /> Mayor Obie reminded the council that compromises were needed in order to <br /> solve the issues by the end of the budget year. <br /> Mr. Holmer commended Mr. Rutan for his list of possible places to address. He <br /> said he disapproves of taking $141,000 from the Fleet Fund and of deferring <br /> capital investments. He said this all stems from the fact that the council <br /> and Budget Committee did not follow through on the process that it created in <br /> November, Mr. Holmer said if it wants to count on new revenues, it must <br /> agree on what the new revenues would be. He said that personnel costs are <br /> over-budgeted and there is leeway for one-time cuts if need be, but he hopes <br /> the council can reconfirm its commitment to the strategic financial plan. <br /> Mr. Rutan said as the management team of the City, we need to balance the <br /> budget without added revenues. He agreed that $640,000 in cuts have been <br /> made but said that is not enough. Mr. Rutan said the $3 million in capital <br /> projects is from all funds, but only $1.2 million is from the General Fund. <br /> He said the unappropriated ending fund balance is important for the Moody's <br />e bond ratings and other financial evaluations. Mr. Rutan said he is <br /> reluctantly willing to compromise to pass the budget by July 1, but feels his <br /> recommendations are worthy of discussion. <br /> Ms. Ehrman asked to be refreshed on the status of the Officers-in-the-Schools <br /> program, Mr. Gleason said the City has $45,000 that has not been deleted <br /> from the program, but the council wanted to review the program before any <br /> cuts were made and a proposal will be forthcoming. <br /> Ms, Schue said there were some good ideas in Mr. Rutan's proposal, but time <br /> is running out. She said a subcommittee could be appointed to review such <br /> items as transportation and travel for all departments. She added that $1.44 <br /> million from the State gas tax fund goes to capital improvements in the City. <br /> Mr. Bennett said he is willing to support the Budget Committee recommendation <br /> in some way, but is not in favor on doing it through a line-item process. He <br /> said he thinks it is highly inappropriate to appoint a subcommittee to <br /> administrate the City and feels policy direction is what is important for the <br /> council to be concerned with because of their lack of expertise in line-item <br /> budgeting. Mr. Bennett added that he thought it was beneficial to have the <br /> alJdit procedure in other areas and to see compari sons from other simi larly <br /> sized cities. <br /> Mayor Obie asked about next year's process, Mr. Rutan said that is the real <br /> question. He said this year's process came out with a few misunderstandings, <br /> and he would like to start looking at the next five years now. Ms. Bascom <br />e MINUTES--City Council Work Session June 13, 1988 Page 4 <br />