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fiscal outlook. He said budgeting is about choices. As he previously indicated the City’s <br />revenues are not keeping pace with the City’s expenditures; spending more money than <br />taking in and relying upon one time payments and cannot rely on this in future years. In the <br />past 3 1/2 years the City was fortunate the City derived about 3 1/2 million dollars from one- <br />time settlements. Mr. Walker said the choices were: <br /> <br /> Reduce expenditures <br /> <br /> Raise property taxes <br /> <br /> Impose an additional sales tax <br /> <br /> Use the reserve fund <br />Mr. Walker said in this budget there are revenue enhancements and expenditure reductions <br />without changing the level of services the residents receive. He said since August 2010 the <br />City has reduced expenditures by $600,000. The proposed budget for 2011 – 2012 fiscal <br />year, reduces expenditures by $1,100,000. Mr. Walker said the key budget highlights <br />include: <br /> <br /> No reduction in the front line personnel in the police or fire departments as public <br />safety is a key component of the high quality of life in University City. <br /> <br /> The City will recommend a charge of $1.00 for evening parking on the two large City <br />owned lots in the University City Loop area. This will generate approximately <br />$210,000 in annual revenue and provide the City with funds to increase security and <br />improve the lots appearance thus increase the appeal of the Loop District. <br /> <br /> Reduction of hours at Heman Park Community Center for rental use only on Fri, Sat <br />or Sunday when the majority of paid rentals occur. The Seniors’ program would be <br />transferred to Centennial Commons. <br /> <br /> Not using the City’s financial reserves except for the portion already allocated for the <br />Wilson Ave. buyout. <br /> <br /> No increase in property taxes <br /> <br /> No proposals for sales tax increases. <br />If Council instructs staff to proceed, the City would consult with the affected parties as the <br />Loop Special Business District and the seniors move to Centennial Commons. <br /> <br />Mr. Walker talked about the use of Reserve Funds. There are options on using it other than <br />to balance the operating budget. He said there are very significant infrastructure <br />requirements facing the City in both long and short term. An example he gave was the <br />resurfacing the City owned parking lots in the Loop would cost at least $800,000. <br />Construction of a public safety building for police and fire would cost over one million <br />dollars, new fire truck needed in the next couple of years would cost about $575,000, and <br />the City may want to consider additional flood buyouts in flood prone areas. Mr. Walker said <br />in the past the City has cut back on their street sweeping and their snow removal and may <br />want to allocate some of the reserve funds for that purpose. <br /> <br />Mr. Walker said over the next few months there would be additional budget considerations <br />that require further analysis prior to making decisions. He said it was important for Council <br />and citizens to consider the various options prior to making decisions. Included in this <br />category is continuing to provide solid waste services or outsource it to a private solid waste <br />hauler. Mr. Walker said he is currently reviewing the responses to the Request For <br />Proposals and the financial analysis that has been submitted along with it, but no decision <br />has been made. It will require more discussion with Council and with the community. <br />Associated with the Solid Waste is whether the Transfer Station should be upgraded or <br /> <br /> 6 <br /> <br />