AG 2002 10 21 (Regular) - Laserfiche WebLink

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Other revenue changes include updating the fee schedule, going to a gross receipts based Privilege (Business) License system and adding the additional $5 vehicle license fee allowed under the General Statutes to fund the local transit system that will be implemented in 2003. As a result of the loss of the $1.7 million in state collected revenues in FY 2001-2002 and very conservative revenue projections due to the economic times, it is recommended that approximately $2.4 million in General Fund fund balance be appropriated. Fund balance will not be necessary to help cover operations unless state collected revenue is. withheld again in F~' 2002-2003. State collected money withheld again will result in the combination of using fund balance plus the cuts in expenditures outlined later in this message. This recommendation is possible only because the elected officials have been good stewards of the City's revenues in the past. However, this is a dangerous practice in times of slow growth as revenue increases due to economic growth decrease and is not available to offset the use of fund balance. Examples of other major expenditures are those targeted to ensure power capacity and reliability to electric customers for years to come, to prepare for implementation of the local transit system and new positions for the police department to further enhance community-policing efforts. Due to financial constraints, 9utside of the water projects that are being recommended that are a part of the Water and Sewer Master Plan, there are only a few other major new initiatives targeted. There will be limited progress on the implementation of some of the other master plans that the City Council has accepted over the past year. , The basic assumptions from the Mayor and City Council and the budgetary principles on which this document is based are: · Basic City services are continued with funding at adequate levels (assuming state reimbursement revenues and state collected local taxes are received). · Revenue projections are estimated at realistic and conservative levels. · Service and facility expansion has been addressed using the Mayor/City Council Goals Statement. As you review the budget document you will note that expenditures are grouped into major areas: personnel services, operations, capital outlay, debt service and allocations rather than the detailed line item report. This format is consistent with the Mayor and Council's wish to develop a more results-oriented budget with performance measures rather than just numbers not tied to specific goals and projects. This is an extension of the Mayor and Council's annual process .of formally setting goals to track results. You will also notice expansion of the use of performance measures. Staff is working to meet the objective to only use measures that are meaningful to the elected officials and citizens and which truly reflect value added services. Staff also proposes that Concord continue participation in the Institute of Government Performance Measurement project as it has proven to assist in benchmarking and performance improvement. In February of 1990, the City Council adopted Fiscal Policies addressing Revenues, Capital · Improvements, Accounting, Debt and Reserves. These policies have been updated annually as part of the Mayor/Council Goals and have been addressed in preparation of this budget. The three-year Capital Improvement Program has been expanded .to a five-year program and is updated and presented for your review.