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]VORKSESSION MATERIALS <br />Of <br />W. rfdy that wicks fry" yo!j <br />Memo <br />To: Mayor and City Council <br />From: Dean R. Lotter, City Manager <br />Subject: Budget Parameters Discussion <br />Date: June 18, 2009 for the June 23rd, 2009 <br />Worksession <br />In April of 2009, Council and staff had two discussions regarding the budget and <br />the impact of lost aid from the State of Minnesota. During those discussions staff <br />provided a conservative estimate on the potential loss that New Brighton could <br />face by estimating the total aid loss at $410,000 in 2009 and $410,000 in 2010. <br />On Tuesday June 16, 2009, Governor Pawlenty announced the details of his <br />unallottments. New Brighton will lose $250,000 in 2009 and $357,000 in 2010. <br />While these numbers are not as bad as staff originally thought, the aid loss still <br />requires budget adjustments. <br />Attached is a spreadsheet that illustrates the proposed reductions that could be <br />made to the 2009 budget. In total these reductions result in a savings of <br />$376,660; $126,660 over the amount needed to be reduced to meet the lost <br />revenue resulting from state aid cuts. Staff has worked on options for 2010 and <br />already has a scenario that surpasses the aid loss for 2010. <br />These two scenarios can come to fruition without the implementation of <br />furloughs. Therefore it is my recommendation that we do not seek furloughs from <br />staff. Enough savings is created by vacancies due to retirements, etc. If Council <br />agrees, then staff will prepare amendments to the 2009 budget and have these <br />changes formalized. <br />Regarding the 2010 budget, staff is interested in having Council provide some <br />direction on the budget and the levy so that staff can work on a budget that <br />meets those expectations. Also attached is a calculation of New Brighton's levy <br />under the levy limit law. Council will need to provide direction to staff on what <br />kind of levy would be acceptable and if Council has specific budget issues or <br />. concerns; staff needs to be directed accordingly. <br />H;Touneil Reports\Budget Pu=tel rs Worksession June 2}, 2009.doc <br />