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Special Mtg Minutes
<br />3-31-03
<br />Page 2
<br />Mr. Brett said, that would be correct.
<br />Mr. Marquardt said, in looking on page #4, on the revenues, if I pull out the grants and the dept,
<br />it looks like we have an operating revenue of about $10,000,000.00. Is that correct?
<br />Mr. Brett said, right.
<br />Mr. Marquardt said if I look on page #7, if I pull out the Capital improvements, we have
<br />operating expenses of about $16,000,000.00.
<br />Mr. Brett said, you also have to pull out the dept. If you're going to pull out the dept on the
<br />revenue side, you have to pull it out on the expenditure side, because a lot of that is a roll over of
<br />the short term notes. If you're going to keep on that analogy, you need to pull out the dept as
<br />well.
<br />Mr. Marquardt asked, all of the dept?
<br />Mr. Brett said yes, pretty much.
<br />Mr. Marquardt said, so that will take out the 4%2 million, plus the 7 million, because the short
<br />term is 4%z. So you got 11.7 million out of 23. So we're down to about $12,000,000.00 of
<br />expenses, is that reasonable?
<br />Mr. Brett said, I'm getting more like 10.5 million.
<br />Mr. Marquardt said, I'm taking 11.3 plus 4.5, that's about $12,000,000.00. So we're down tol l
<br />plus million. I guess what I'm getting at is, are we dept financing our operating expenses?
<br />Mr. Brett said, no we're not, we'"re not at all. We are going at a slightly negative impact on the
<br />cash balances that we've carried forward, in anticipation that those will pick up. Going in again
<br />with very conservative estimates on revenues, and conservative estimates on expenditures. Pretty
<br />much finding out a worse case scenario on both situations, which is what we've done in the past.
<br />Council President Buckholtz asked, so in other words, the budget shows some minor shortfall?
<br />Mr. Brett said no, not a shortfall. It goes into some of the cash balances assuming a worse case
<br />situation. If the worse case situation plays out, cash reserves are more than sufficient to handle
<br />that situation, which again is a pattern we've pretty inuch put forward on every budget that
<br />we've done so far. Part of it is a plan, but it's always pretty much couched in the scenario of let's
<br />assume the worse case scenario of what's going to happen, and that's what we've always done.
<br />We've assumed for instance, despite the fact that we had pretty much a record year of municipal
<br />income taxes last year, we're assuming a 5% decrease in that area. Taking those assumptions,
<br />and taking very conservative assumptions with the revenues, yes, that will cause us to dip into
<br />the cash balances. If you carry that out over every particular fund, you would have that
<br />continuing. In some funds, we anticipate going down pretty deeply into our revenues. We're
<br />spending most of the funds that are remaining in the Northwest Quadrant fund. That's
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