2003_0407_packet - Laserfiche WebLink

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Some May Have Budget Situation, and Answers 1. "Why can't we just use reserves to make up for any budget deficit?" We can. The council would have to authorize that. I recommend we use a significant amount of reserves this year to help us with our budget problem this year. And if this were a one or two Y ear problem, reserves might be the major answer. But, I don't think this is a one or two year situation, and reserves are not a lore -tex n n solution. You can only spend your savings so long. 2. 'Can we raise local taxes?" Probably not. It loops like the Legislature will be adopting some laws that prevent cities from raising their taxes to make u p for the loss of state aid. 3. 'What is going to happen to the building project ?" Again, the City Council will make the final decision. I continue to support that project because police and public works are essential city services. That project will help improve those core city services for decades to come. Despite the state's budget difficulties, which have in part now become our budget difficulties, I think it makes sense for us to continue to plan and build for the future, 4 "'But does it make sense to construct a new building when use are looking at the likelihood of reducing programs and star . " We could wait, but the price of that construction will only o u g p over tine. with the economy struggling like it is, it is actually a good time to be out bidding for construction work. In addition, and this is a point that is not always clear to people, different city projects and programs are paid out of different pots of money. Our project to build a new police department and to renovate the public works maintenance facility is being paid for with voter-approved bonds. That money cant be used for anything else. we can't use that money to pay for city programs or for city employee wages; it g a can only be used to construct this project.