AG 2002 10 21 (Regular) - Laserfiche WebLink

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CITY OF CONCORD 7047867068 10/16 '02 08:22 N0.282 02/07 Mm om dma a city.nweting tbe.. urv... To: Mayor Padgett and Members of Council From: W. BHan Hiatt, City Manager Cate: I0/16/2002 RO: One-lml.f Cent Sales Tax K~:omm.~'n. dations Some of you have asked which items of the cuts outlined in. the budget that I would recommend for ftmdi-g should the one-haft c~xit sales tax be approved by the County Commissioners effective December 1,2001. As you will recall, the elimination of the reimbursements by ~hc State resulted in an annual loss of $.1,570,988 to Concord. I detailed a hst ofcuts in the FY 2002-03 budget recommendation to cover fltis amount. This money has been "frozen" internally to make sure we do not go over budget this year. Ifthe one-half cent sales tax is approved for December 1, the North Carolina League 0f Municipalities has projected Concord would receive $910,530 in revenue. Using this number, below are the r¢comm, endations I would make for this r~. Iv, cement revenue. Remember, many of these expenditures were delayed from the previous year because we lost $1.7 million iii FY 2001-2002. Also remember we have already budgeted $2.4 million in fund balance so dipping further into our savings is .llot .,aln~ option. i; .wo~Id like to point out that without the half-cent sales tax we have a holc in our budg~ that will. continue into future fiscal years. Due to conservative reverlue proje, ctions to reflect the economy, departments have had to do without J/l many .,areas. However, unlike the private sector when there are ecOnomic problems, our customer base is growing with a 4% population growth, rate even with a moratorium on water line extensions in place. Concord has added epproximat¢ly !5,000 people in 4 years with few am~.~ations of residential areas taking place. Attas~hcd is a summary of my recommendations followed by a brief discussion of the items I have listed. Amounts are estimated.