2004-05-12 Budget Study - Laserfiche WebLink

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Session 1920 May 12, 2004 Mr. Ollendorff said that most of the reductions in this budget are postponing capital, for example, the deleted contingency funds in the Street Division. Another example is the delayed projects in the Park Department. Golf Course - there are no major changes. Recreation - there are no major changes, but about $20,000 has been added to cover the cost of program expansion. Ms. Welsch asked if the money generated by Proposition K was enough to build the recreation center, to hire staff, and to increase maintenance and programming, and whether this $20,000 was enough to do this, and Mr. Ollendorff said that the $20,000 was part of the funds, and that there are also increases in Aquatics fees to provide funds for expansion of programs. She then asked the City Manager to delineate the specific amounts, subtracted from the total $500,000, that will be used to pay for the recreation center, and how much will be used for programs, maintenance, etc. His response was that $429,000 equals the payment, leaving $75-$90 thousand dollars for debt rather than programs. Consultants advised funds would come from fees to off-set costs and the amount needed for the budget is the net cost, $80 to $100 thousand dollar range, most of which is in "pieces" like those just pointed out. One problem to be faced later this fiscal year is start-up expenses, staff and program development costs starting before the facility opens and before revenue is forthcoming. That will necessitate finding $30 to $50 thousand dollars in start-up operating funds that will not be off-set by revenue. The budget is based upon the long-range picture, operating upon on-going income, but there is going to be a three month period with expense and not much income, and the City Manager reported that he has not yet "come to grips" with that. Ms. Colquitt asked if summer playground youths had been allocated to the soapbox derby, and Mr. Ollendorff said staff in both Parks and in Recreation would assist. He said the City allocated staff only to programs authorized by the City Council. Ms. Brot asked where expanded exercise programs for senior citizens could be inserted into the budget, and Mr. Ollendorff said at this line item. He asked for suggestions about other programs from the Councilmembers. Ms. Welsch asked what the reasoning was behind allocating all current funds to line items now, as opposed to setting aside funds for programs which start in the spring. Mr. Ollendorff said care would be taken to avoid incurring expenses in hiring staff until the City Council had approved a budget to take action. He said he will return to the City Council with a request start-up funds and he will also need to demonstrate where the revenue will come from; he has neither answer yet and probably will not for a few months. Page 6