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HomeMy WebLinkAboutM-76-0433CITY OF MtAtli, FLORIDA INtEP•OFFICE MEMORANDUM to: Honorable Members of the City Commission CATE APR 2 1 1970 FILE sLeJE:.r Progress Report 1975-76 Budget Ati, au-obte4.---' FROM P. W. Andrews RcFER6'4c Memorandum of February 2, 1976 City Manager ENCLCEUPES Chart On February 2, 1976, I reported to the City Commission that there-11 were several factors that have impacted the 1975-76 Budget which will require budgetary adjustments to avoid deficit spending this year. As noted in that memorandum, the City is faced with over- coming unanticipated expenditures and a fall off of revenues totalling approximately 52.3 million. Two actions taken to date to overcome this problem are: a reduction of $150,000 from the commodity codes of the general operating budgets, and fee adjust- mi ments increasing revenues by 5200,000. We are presently in the process of abolishing 75 to 100 vacant positions. This action is designed with a two -fold purpose in mind: 1. to take advantage of the immediate dollar savings to the City this year, and 2. to provide a full year impact of approximately $1.2 million in the 1976-77 budget year. Attached you will find a table that more fully describes the current situation and a summary of the recommended actions that must be taken. These actions will insure that the City will not end the year in deficit. Further, I am proposing that the Commission authorize the use of $1,091,582 from franchise revenues that are not now presently allocated, and authorize the use of 5900,000 of a total of $6.9 million of the Federal Revenue Sharing funds which the City has retained as laa funds that were intended to cover the phase down of the program upon termination. The actions outlined will resolve the present year's budgetary prob- lem. In reviewing the 1976-77 budget, it is apparent that the City will he faced with an approximate'S4.2 million requirement above the current budget level unless other actions are taken. As indicated above, immediate actions are being taken to reduce on a permanent basis 51.2 million from the budget by reducing approximately 75 to 100 vacant positions. The remaining S3 million can be taken from the balance of the 56.9 million that is considered lag funds in Federal Revenue Sharing, and 53 million for similar requirements in 1977-78. Upon depletion of these funds, funding can then be made Page 1 of 2 /1.1 o't i a n1476-,63 Honorable Members of the City Commission available on a continuing basis from franchise funds in the amount of approximately S3,330,000 annually. The proposed plan will minimize the necessity for a tax increase for the coming year and will reduce the potential need for a lay- off of the existing work force. I plan to discuss this matter with the Commission at the Commission meeting this Thursday, during the period normally reserved for the City Manager's reports. Page 2 of 2 Adopted Revenues GENERAL FUND CURRENT YEAR FUNDING 1975-76 BUDGET • Projected Changes from Adopted Budget Current Year's Taxes (operating - 8.619 x 50,441 loss per rill • $434,750) (Debt Service - (not included) 2,311 x 50,441 loss per mill $116,569) State. Revenue Sharing (Indicates slight increase for last quarter) :'elei.hc^.e Franchise 1Already collected) Police Cepartrent Reports rased on new ordinance) Utility Taxes (Rate increases) Parking Ticket Problem Fund t'a:ancc - 487,167 Less: ?t:bile Law F.enppropriatien-185,000 $ - 435,000 - 1,100,000 + 60,000 35,000 630,C.O 50,030 4. 302,167 $ - SE7,833 e $64,860,565 - 587,833 . (A) $64,272,732 Adopted Budget Expenditures Proiected Increases from Adopted Budget Parks and Recreation (Cashiers, Lifeguards, Starters) Croup Insurance Employees $368,749 Retirees 20,000 $ 160,000 388,749 Self Insurance 235.000 Communications 160,000 (Telephone increases) Holiday/overtime 400.000 Workmen's Compensation 385,000 Florida Industrial Commission 25,000 Summary of Hudaetary Requirements (A) Revenue $64,272,732 (B) Expenditure 66,614,314 $ 2,341,582 $1,753,749 $64,860,565 +1,753,749 (B) $66,614,314 1.