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�ri� 1 . ��.� <br />� <br />�VIemo <br />To: ��yor �a c��y cQ���l <br />Bitl Maiinen, City Manager � <br />Farom: Chris Miller, Finan.ce Di�rector �� <br />Da�e: A�gus� 6, 2007 <br />Re: Historical �teview af the City Budget <br />Date: 8/0fi10'7 <br />Item: fi.f <br />City Co�ncil Discussia� <br />2008 City Bt�dget <br />Introduc�ion <br />Tr� an effoi-t to pravide the Cauzacil wi� added pers�ective o� t�he City's budge� decisions a�d <br />t�eir irr�pact, Sta£f has coznpi�ed a general history of recent year's buc��;et acliQns. This shoutd <br />provide the Council witl� addet� means of gauging wl�ether �he curren� budget is ei%c�ive in <br />delivering programs and services at expected lev�ls. It s�ould also provide so�e useful <br />i�%rnaatio�a in making budget decasians £ar 200$ �d beyor�d. <br />20Q3-2Q�7 Tiudget Overview <br />During �he past 5 years, �he Ciiy's overall budget went fraz�: $33.6 mitlion to $32.6 z�il�ian, a <br />decrease a£ $� million. The decrease is largely du� to a reductiorz in TIF ar�d de�t ser�ice <br />expendit�res which more t�an oifset increases in other expenditure categaries. Perhaps a more <br />useful compariso� �owev�r zs with respect ta the programs a�d services t�at are £�nded in part ar <br />in toial, by pro��rty ta�es. Thi� i�cludes; police, £'ire, street maintenance, parlcs & recreation, <br />g�za�rat adzninistrative and fi�as�c� f€€nctiarts, as well as o�her prograrns. <br />D�ring i�e past S yeaz's, the budget £ar the City's protaertv tax�su�ported pra�rams went from <br />$1 S.9 millian io $16.3 million, an increase of approxi�nately $400,000 or less than 1% per year. <br />During ihis sarne �eriod, local in�lation, wk�ich erodes purchasin� power, was approxi�ataly 3% <br />p�r year. As a result, nver t�e past S years total b�dget allocatians for tar�any of tl�e City"s core <br />£�nctions declined z�. real dallars. This decline i� reaI iunding dollaxs ha� strained the City's <br />ability to �nainiain programs and services at expected levels. <br />De�ailed infc�rmatzan an depart�nental c�r divisio�al impac�s can b� found in Appendix A. <br />2U�3-2007 Budgei Reduc�io�:s <br />As �oted above, over �he past 5 years funding increases in the pz�ope�y tax-supported prograz�s <br />has trailed inflation. The prirnary reason is largely due to reductio�as i� avaiiable xevenue; <br />�rimarily general-pt�tpose stafie aid. T�is has necessita�ed the modest grawt% and i� some areas <br />necessitated budget reductions. <br />