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Attachment D-9212020 147 Adjusting Budget Funding Sources 148 Provide Levy Support for Communication Functions 149 2021 Levy Impact: Increase of $50,000 150 Revenue from cable franchise fees are placed in the cityÓs Communication Fund. In 151 recent years, the amount of franchise fee revenue has been decreasing. As a result, the 152 following structural changes were made as part of the 2020 budget: 153 1)The portion of the salary paid from the Communications Fund (a total of $67,010) for 154 the Assistant City Manager and Deputy Clerk position are now paid from the property 155 tax levy moving forward. 156 2)Communication capital equipment is now funded by the Facility Replacement Fund 157 and not the Communications Fund. 158 As part of the final approval of the 2020 City Budget, the City Council removed $45,000 from the 159 Communications budget to ensure financial sustainability sooner. Based on that cut, staff has 160 moved $20,000 of planned capital purchases from within the 2020 Communications operating 161 budget to the facility fund. Additional review and discussion on where the remaining $25,000 162 would be cut from the budget and organizational structure review was pending when the COVID- 163 19 pandemic began and has not been completed. 164 165 In reviewing the current need to continue to fully use our communication resources during the 166 pandemic while still being fiscally responsible regarding the balance of the Communications 167 Fund, I propose the following: 168 169 Cuts of $9,000 from the 2020 Communications Budget 170 o Professional Services - $5,000 171 o Operating Supplies - $1,000 172 o Conferences - $1,000 173 o Miscellaneous - $2,000 174 One-time transfer of $16,000 from the Finance Equipment Replacement Fund to the 175 Communications Fund. Funds were allocated in the Finance Equipment Replacement 176 Fund in 2019 for the purchase/upgrade of our current financial management program, 177 Springbrook, that came in substantially less than budget. 178 The above described actions will need to be taken up as a separate 2020 budget amendment 179 process, which staff will bring forward in the future. 180 181 For 2021, there will need to be additional funding to correct the structural imbalance in funding. 182 A couple factors to keep in mind regarding the 2021 Communications budget. 183 1)The amount of revenue being received from cable tv subscribers has seemed to 184 stabilize in the last 18 months to about $95,000 per quarter. While that is still less 185 than what we received a few years ago, the stabilization of revenue does help for 186 planning purposes. Page 8 of 20