Laserfiche WebLink
DISCUSSION <br />The City's General Fund budget was adopted November 5, 1991. <br />A very conservative approach was necessary; given a $2.5 million <br />fund deficit which carried over from fiscal year 1990-91. The <br />approach by the Council included: <br />1. Reducing revenue expectations from the prior fiscal <br />year by $1.5 million. <br />2. Budgeting only 90% of salaries for full time and <br />regular part-time employees. <br />3. Reducing budgets for contractual services by <br />$500,000. <br />4. Not providing for minimum capital outlay which <br />impedes productivity enhancements derived from new equipment. <br />5. Not providing prudent reserves --5% or $900,000 was <br />originally recommended. <br />6. Providing no cost -of -living amounts for employees or <br />to pay for externally -purchased goods and services subject to <br />some inflationary pressure. <br />7. No provision for encumbered obligations in the form <br />of purchase orders or contracts (in other funds some <br />encumbered items were provided for in their respective <br />budgets). <br />The Council adopted a deficit budget with the above listed <br />reduced expectations. After comparing the estimated revenues to <br />the anticipated expenditures, it left a $2.5 million deficit. The <br />- 2 - <br />