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projected. Ms. Watson said there could be a wide variance as we are only half <br />way through the Fiscal Year and some revenues and expenses lag behind. <br />Projected revenues for next year were $26,116,706 a number used from <br />expenditure projections. Ms. Watson said that without any further changes, the <br />City’s expenditures will be $26,470,855, leaving a deficit of $354,149. Ms. <br />Watson also explain the need to take into account a decline in the City’s <br />population by four percent which would result in a decrease of $305,000 in <br />revenue for next year, bringing the operating deficit to $659,149. She said these <br />are very approximate numbers. Ms. Watson said this amount assumes no <br />further budget reductions if the City did nothing further than the reductions we <br />have already done and if there was no employee cost of living adjustment. <br /> <br />Ms. Ricci asked where the business districts were included. <br /> <br />Ms. Watson said the Special Business District, the Parkview Gardens District, <br />and the Loop Special Business District handle their own funds, so the City <br />doesn’t process their revenues and expenditures. Ms. Watson said the City has <br />discussed this with them in order to put in the City’s system. <br /> <br />Ms. Ricci was trying to understand how the City handle debt services, because <br />there is $1,000,000 in the general fund which also shows up in the debt service. <br /> <br />Ms. Watson explained that the City has two different types of debt service: four <br />bond issuances, 3 of which are paid by the general fund shown in the General <br />Fund for $1,000,000. There is a Debt Service Fund, which is when the City had <br />a general obligation bond issue passed; property tax supports bond issues which <br />are in the separate Debt Service Fund. <br /> <br />Ms. Watson referred to the detail pages of the debt service, in the expense <br />budget performance report general fund, debt service is on page 33 of 54 and <br />the debt obligation service is on page 37. <br /> <br />Mr. Glickert asked to go to General Fund noting that from July to December <br />meant the City is 50% through the year. <br /> <br />Ms. Watson said there are several revenue areas where receipts lag by as much <br />as two months. <br /> <br />Mr. Glickert said he was concerned that at the half way mark the revenue <br />received is about 43% so asked why there was a lag there. <br /> <br />Ms. Watson explained the largest revenue for the City is from sales tax of which <br />its receipts are approximately two months behind. By December 31, the City has <br />only received payments for four months. Ms. Watson said that sales tax has <br />been surprisingly stable this year as compared to previous years. <br /> <br />Mr. Glickert asked Ms. Watson if she receives any kind of communication from <br />the State as to their forecast of future sales tax revenues. <br /> <br />6 <br /> <br /> <br />