MEMORANDUM

To:     Mike Wildgen

          City Manager

From: Debbie Van Saun

          Asst. City Manager

Re:     budget reductions

Date:  February 5, 2004

As we embark on the 2005 budget process, it might be helpful to review those measures that were taken previously to improve the City’s financial situation. Below are listed some expenditure reductions that were put in place in 2003 (with the intention of improving the balance forward for the General Fund for the 2004 budget) as well as a list of items that were removed from the 2004 budget to reduce the mill levy increase.  Please note that some of the measures were “one-time fixes” that will be difficult to duplicate.

2003 expenditure reductions

· eliminate new dispatcher positions              $50,000

· eliminate new firefighter positions               $106,000

· eliminate legal advisor position                   $55,000

· eliminate P&R positions (reorganization)     $55,000

· defer Public Works vehicle purchases          $43,000

· transfer mower purchase (Sp. Rec)             $12,000

· defer P&R equipment/chip & seal                $55,000

· eliminate transfer to Equipment Reserve      $100,000

· reduce contingency                                   $100,000

· reduce travel/continuing ed                        $51,500

· required full payout of employee vacation and sick leave accruals prior to recruitment activities for vacancies

2004 budget reductions

General Fund

· no general wage adjustment for employees

· reduced salaries in General Fund                $100,000

· reduced mill/overlay program                              $150,000

· reduced asphalt funding                            $50,000

· reduced curb repair program                      $50,000

· reduced building repairs funding                $10,000

· transferred P& staff to Parking Fund            $36,870*

· reduced transfer to Sales Tax Reserve         $250,000

· transfer capital outlay to Equip. Reserve      $624,000*

· bond Fire Dept. tanker truck                       $300,000

· defer computer replacements                     $33,000

· reduce funding for employee programs       $26,000

· reduce funding for legal services                 $50,000

· transfer funding to other funds                   $225,830*

· reduce contingencies                                 $150,000

· reduce e-gov funding                                $50,000

· misc. fire/medical reductions                      $52,000

· reduce funding for part-time staff               $27,000

· reduce overtime                                        $40,000

· reduce funding for equipment repairs                   $40,000

· miscellaneous                                           $80,000

Recreation Fund

· closed Carl Knox Natatorium in summer      $13,000

· utilized West Rec Center funds for

    operating revenue                                 $200,000

Public Transit Fund

· reduce revenue requirements                     $50,000

*one-time fix