|
Council Minutes of 2/17/2009
<br />~~
<br />compensation can't be reduced during the terms. The Mayor believes that
<br />benefits in general are too generous and needed to be reduced. The Mayor
<br />indicated that the worker's compensation self insurance program, which we
<br />enrolled in last year, should achieve a substantial savings in 2010; but we have to
<br />clean up some residual financial matters with the workers' compensation program
<br />in 2009. Based upon our IT assessment, technology replacement will occur only
<br />in those areas where absolutely required. In years past, we had a computer
<br />rotation program. We have stopped that, and it will only take place if absolutely
<br />necessary. The same approach was used for Fleet. Vehicles and equipment in the
<br />Service Dept. will only be replaced if absolutely necessary. There are no new
<br />purchases of Police cruisers this year, whereas in years past we would have a
<br />continuing rollover of stock in order to keep the oldest cars going out and new
<br />cars coming in. The Mayor thanked Council for its time.
<br />• Finance Director Copfer gave an overview of estimated resources. First, she went
<br />over where we were in December versus where we were in January. In
<br />December, after layoffs, we were looking at a $483,000 shortfall. The budget
<br />presented to Council, because the $483,000 was contemplated being made up
<br />through the tax credit reduction and that didn't pass, the Finance Director
<br />indicated the unencumbered balance, the carryover, was off by $287,000. The
<br />total carryover was $1,487,000. The estimated resources were decreased by
<br />$213,000.; $103,000 cut from local government fund; $100,000 reduced interest
<br />income; $10,000 reduction in building permits and fees. Finally, benefits,
<br />contractual services, and materials and supplies were reduced by $449,260. There
<br />were some additional minor changes that took place in several different line
<br />items, but the end result is that it made up the $483,000 in the budget. The
<br />Finance Director explained the developing trend in income tax. We will see a
<br />5.8% reduction in 2009 ($500,000). Income tax collections were $13,039,380 in
<br />2007. They will drop, as projected in 2409, to $12,046,847. This is a loss of
<br />$992,533 in revenue. We also will see a $138,000.00 reduction in property tax.
<br />Declines will also occur in fines and forfeitures; licenses, permits and fees,
<br />intergovernmental income and investment income. Income tax and property tax
<br />accounts for 72% of the General Fund income. If you add intergovernmental
<br />funds, that number jumps to 88%. The total percentage drop in revenue for the
<br />General Fund was 9.7%. The total General Fund was $20,801,242.04 in 2008.
<br />It's now $18,525,151.23. That is a decline of $2,276,091. To balance the budget,
<br />that means that the carryover ($1,487,000) was depleted, plus another $789,091
<br />had to be realized in net cost savings. The Finance Dept. saw a 9.35% decrease
<br />over 2008. One part time bookkeeper was eliminated and various memberships
<br />were not renewed.
<br />• Safety Director Thomas presented for the Police, Fire, Building, and Youth
<br />Services Divisions.
<br />PULICE
<br />1. Division of Police is the largest;
<br />5
<br />
|