Loading...
HomeMy WebLinkAbout2009-2010 Budget Discussion~~~~ ~~ Date: April 15, 2009 From:. Judy Weyrens, Administrator Lori Barnett, Finanee, Director RE: 2009 Budget There has been considerable discussion about the LGA cuts and what the City can expect. Based on information receirred from the Geague the City can expect the following reductions in location government aid. 2008 Actual LGA Loss < $ 103,983s 2009 Governor's Proposal <$135,882> House Proposal <$ 48,494> .2010 Governor's Proposal. <$ 283,745> House Proposal <$ T5,634> From a staff perspective we are., using the Governor's Proposal with the understanding that the number can move eitherup or down. Many questions have been raised as to howthe City is prepared to handle the loss in aid. The following information is provided to hetp illustrate the steps already taken. by the Cityfor both the year 2008 and the current year 2009, 2008 The City Audit is completed and the tnfarmatiorr +wll be presented by the Auditors at the First meeting in May. The information below has been extracted from the final 20(38 audit. Budget Rctuai Variance 2008 General Fund Revenue $ 2,776,060.. $ 2,539,365 < $ 236,695> 2{}08 General Fund Expenditure $ 2,790,990 $ 2,627,164 ,;_, .163826 .Impact < $ 72,869> The numbers listed above include the transfer of genera! funds to the Capital Improvement Fund.. The transfer of funds was equal to the 2008 budgeted. C1P. in early 2009, the Council motioned to transfer ;pack to the General Fund the budget 2008 CIP Funds. The transfer back to the General Fund was 180,415. The reason for the transfer was to cover the loss of LGA funds: due to the Governor's. un- allotment. As you cart see from above that numl~r is $ 303,983. Since this transaction happened after the dose of 2008, the'transfer is not included in the audit for 2008. With this transfer the City captured the loss In aid and a portion of-.the declining revenues.. PO 80X5+58 PHONE {320) 363-7201 ~)t,r Df ~J~. ~QSiQ h 25 College Avenue North ~ MATL {320} 363-0342 `~ R St. Joseph MN 56374. jweyrens@clryafstyoseph.com wes 5rrr http:/fwww.dtyofst~}aseph.com With regard to the financial position of the City at the end of 2008, again based on audited numbers the General Fund had a reserve balance equal to 159 days or 5.22 months. Of this reserve, approximately 4596 is the fire fund and 5590 is what the City would consider the general fund. Extracting the Fire Fund the City has a fund balance equal to 2.87 months. This is a similar cash position as in 2007 and 2006 2009 Everyone is aware that LGA will be cut in 2009 and the real question is how much. Staff has been using the Governor's projections as the target numbers. The Council has met on different occasions to discuss the potential impact and have agreed to review memberships to organizations, staffing levels and eliminate the CIP budget numbers. The bigger struggle will be for the budget year 2010. Staffing will have to be reviewed for this budget. The following is an illustration of steps the Council has already taken to prepare themselves for the LGA reductions. Delay budget amount to the CIP -Impact: Budget reduction of $184,720 Settled Union and non Union Contracts at a 09b wage increase. Estimated Budget Impact $ 74,000. Summer Recreation contribution has been reduced to a maximum of $1,200. Budget Impact: Reduction of $ 3,80D. The following are items that could reduce the current budget Potential Saving Budget Impact Other Impacts Eliminate the hiring of two seasonal grass cutters • Not replacing Account Clerk with full time - considerpart time or shuffling of responsibilities • Reducing staff by one police ofpcer $15,070 Budget reduction of and some park areas may not always be manicured. No hire May encounter a minor a minor amount <$ 57,000> of overtime to accomplish all tasks and Part Time some tasks may be delayed such as <$20,000> website . The 2010 irnpad is anticipated to be $ 80,000. 2009 only has a partial impact. <$75,000> Cops Grant would potentially pay the City for this position for a three year period beginning January 1, 2010. This amount cannot be totally reduced from the budget as the position must be maintained for one year after the three year funding. The impact is graduated from $ 25,000 to $ 86,000 over a three year period. Reducing Maintenance Staff by-one s$75,0(~0> Work items may not be completed on time, + Consider elimi~atmg membership to the The league bf MN cities provides similar Coalition of Greater MN Cities. <$ 7,900> services. we will have prepared a list of all the City memberships and this information will be presented at the meeting.. To clarify, the proposed reductions do not indicate that the items were not needed, rather, funding has forced the City to pick which services tan be provided. If the City does not receive the tuts as anticipated the Council will again reuiew which of the proposed items should be funded and which will not.