Mayor announces new budget

MEMORANDUM

To: Chair Person Mary Neely and City Council Members

From: Mayor David Felinton

Date: July 30, 2001

Subject: 2001-2002 Fiscal Year Budget

In response to the Resolution by City Council, attached is the outline of the 5% reduction made in the FY 2001-2002 budget. Please note that in the original assessment we were expecting a $563,652 deficit for this year ending June 30, 2001. We actually had a positive $72,344 balance. This together with the estimated deficit that did not occur, gives us $635,996 more starting the FY 2002 budget that we did not expect. Since we have been searching for 5% of our FY 2002 expenditures of $30,035,259 to cut, we are now faced with only $865,767 for the immediate need.

Right now we are currently in discussion with our three bargaining units for the purpose of re-evaluating our health care system. This is a part of the process that the administration has been working on for months. Hopefully as a result, we will come up with solutions for reconfigurations of some of our benefits, we will certainly make other cuts necessary to make up the difference.

This is a very delicate process that will not be finished within one week but as promptly as possible.

Our employees are very dedicated and hardworking in evaluating this with the administration.

DF/jh

FUND BALANCE ANALYSIS AND EXPENDITURE CUTS FOR FY 02

Fund balance before close $30,035,259

Gain on year end $636,996

New fund balance after close: $30,671,255

Expenditures for FY 02 $30,035,259

Surplus revenue over expense $635,996

5% of 30,035,259 $1,501,863

Additional cuts to reach 5% $865,767 $1,501,763




MEMORANDUM To: Chair Person Mary Neely and City Council Members From: Mayor David Felinton Date: July 30, 2001 Subject: 2001-2002 Fiscal Year Budget In response to the Resolution by City Council, attached is the outline of the 5% reduction made in the FY 2001-2002 budget. Please note that in the original assessment we were expecting a $563,652 deficit for this year ending June 30, 2001. We actually had a positive $72,344 balance. This together with the estimated deficit that did not occur, gives us $635,996 more starting the FY 2002 budget that we did not expect. Since we have been searching for 5% of our FY 2002 expenditures of $30,035,259 to cut, we are now faced with only $865,767 for the immediate need. Right now we are currently in discussion with our three bargaining units for the purpose of re-evaluating our health care system. This is a part of the process that the administration has been working on for months. Hopefully as a result, we will come up with solutions for reconfigurations of some of our benefits, we will certainly make other cuts necessary to make up the difference. This is a very delicate process that will not be finished within one week but as promptly as possible. Our employees are very dedicated and hardworking in evaluating this with the administration. DF/jh FUND BALANCE ANALYSIS AND EXPENDITURE CUTS FOR FY 02 Fund balance before close $30,035,259 Gain on year end $636,996 New fund balance after close: $30,671,255 Expenditures for FY 02 $30,035,259 Surplus revenue over expense $635,996 5% of 30,035,259 $1,501,863 Additional cuts to reach 5% $865,767 $1,501,763

	Memorandum Click to enlarge
		Attachment 1 Click to enlarge
	Attachment 2 Click to enlarge