RES 94042 - Laserfiche WebLink

salary savings ($537,000), and due to increases in revenue projections ($164,000), about $714,000 less will be needed from the Temporary Recession Reserve. Therefore, the net expected draw on the Temporary Recession Reserve this year is expected to be $674,000. This would leave a 1993-94 projected year-end balance in the reserve of $3.1 million. Assuming a status quo budget is prepared for next year, if vacant positions are ~led, the expected draw on the Temporary Recession Reserve in 1994-95 would be about $1,500,000, unless other actions are taken to bring revenues and expenditures in alignment, and barring any further cuts by the State. (See Appendix F, Table 1, page 83). This would leave a projected balance in the reserve of $1.6 million by June 30, 1995. This would be used to offset any funding gap due to additional State reduction or to help balance the 1995-96 budget. Reserve for Economic Uncertainties The 10% Reserve for Economic Uncertainties is an ongoing reserve to meet unexpected emergencies such as natural disasters, and economic deficiencies such as the temporary loss of a major revenue source due to a fire. This Reserve was established in 1990 with the adoption of the City's Financial Policies. The reserves projected balance at June 30, 1994 is $3.4 million. SUMMA.RY OF RECOMMENDED REVISED GENERAL FUND BUDGET Appendix A (starting on page 21) outlines the General Fund Operating Budget as it was originally adopted, shows the amendments to date, and the impact of the recommended midyear adjustments. Revenues are $164,000 more than projected after the first quarter reduction of $500,000 to reflect the State budget adoption. Most of this extra revenue comes from Public Works Fees. Therefore, staff is recommending that all of these funds be set aside in the Temporary Recession Reserve. Staff is recommending that expenditure appropriationi be reduced by $569,000. Of this amount, $537,000 is from salary savings due to untilled positions. Staff recommends that all of these funds be set aside in the Temporary Recession Reserve. Net transfers are recommended to be decreased by $19,000. Staff is recommending that these funds be taken from the Temporary Recession Reserve. 1994-95 GENERAL FUND BUDGET SCENARIOS Table 2 in Appendix F (page 85) shows five scenarios for the 1994-95 budget year. All assume no additional impacts on the City as a result of the State budget. In the best case, Scenario 3, the 1994-95 deficit is only $300,000. However, this assumes all untilled positions remain vacant, and that revenue increases outpace expenditure increases by 5%. Scenarios 2 and 4 project deficits of $800,000 and $1 million, respectively, making different assumptions about inflation and vacant positions. SR 94:100 8