1996 AGN JUN 17 I03 - Laserfiche WebLink

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Budget Message Page 3 reserves (e.g., Utility Users' Tax and General Fund revenues or the carry-over of prior year's balances), criteria on how the reserve funds can be used, and the votes required to approve the use of the funds (super majority votes). The primary goal will be to ensure that these funds are not utilized for ongoing operational expenses. Conclusion There are nine new full-time positions in this budget (three in the general fund, four in the enterprise fund, and two grant positions). The General Fund expenditures for FY 1996-97 are $16,601,161. This is to be funded by $16,601,161 in General Fund revenues. Hence, staff is submitting a balanced budget. Over the past two years, the City of Colton has significantly improved the dismal fiscal condition it experienced the last two years. Although the City's financial position is not ideal, it is important to realize that the conditions which contributed to these financial problems did not occur overnight. In much the same manner, the solutions cannot occur immediately. Hence, the Fiscal Health Plan was designed to be implemented over a three-year period so that improvements could be made incrementally. We are now entering the second year of the Fiscal Health Plan. The most significant strides staff made in the first phase (FY 1995-96) included the elimination of one-time, unstable revenues to cover recurring expenditures, the implementation of more stringent expenditure controls, and the repayment of prior years' loans made by the Electric Utility to the General Fund (this repayment will include $489,000 in FY 1995-96 and $1,144,041 in FY 1996-97, for a two-year total of $1,633,041). Since January 1995, the organization has experienced traumatic changes, including layoffs and the implementation of furloughs which resulted in the reductions of both productivity and morale. At the same time, demands for services have increased dramatically. For example, during a period in the spring of 1996, the City Manager's Office received and coordinated over 150 service requests, the majority of which have been addressed. Staff is proposing the elimination of furloughs in this budget to improve morale and enhance productivity. The elimination of furloughs is neither a pay raise nor a cost -of -living increase for employees. Outlook for FY 1997-98 During the 1996-97 fiscal year, City Administration will develop organizational goals for FY 1997-98. Examples of anticipated goals include the identification of on-going revenues to replace the Utility Users' Tax (which sunsets in April, 1998), the continuation of program budgeting, the preparation of a comprehensive classification and compensation study for all positions, and the continuation of an aggressive economic development program. In closing, I would like to express my sincere appreciation to all those who assisted in the oreoaration of this budaet document. City Manager