Preliminary budget analysis shows that there is just over $500,000 in ongoing revenue available to allocate to new or enhanced expenditure items in the Fiscal Year 2015 Budget.  Council has identified three budget priorities for the upcoming fiscal year: infrastructure, compensation and staffing.  In order to better address these priorities by increasing the available revenue to work with, the Council agreed, at the February 10 Budget Retreat, to examine possible expenditure cuts in the General Fund.  This is in addition to their consideration of possible revenue increases that were already identified at the February Retreat.

The financial impact of these proposed expenditure decreases will depend upon the proposal.  Staff will provide an economic analysis of each proposal that receives three or more Council votes at this meeting.

Below are the Council goals related to this agenda item:

1. Repair Replace maintain infrastructure (streets & utilities)
11. Effective governance

Council has discussed various expenditure reductions each year during the various budget meetings.  In 2013, Council reviewed 21 different City programs for possible service level reductions or eliminations.

Proposed reductions or reallocations for consideration:

Mayor Nabours

1. Stop funding SEDI.
2. Consider a 10% reduction to the funding of United Way; Victim Witness; and NACASA.

Councilmember Oravits:

1. Propose a 1% reallocation of the General Fund budget, approximately $600,000 for FY2015, to be reallocated to the three identified Council priorities proportionately. As for what to cut in order to accommodate the reallocations in FY15, ask that staff bring to Council several suggestions.  Staffing levels addressed through attrition may be one avenue that may accomplish the 1% goal, but open to suggestions.

Inform - This is the first discussion of these proposed reductions.  Public may comment during the agenda item and then again during public comment period at the April Budget Retreat and again at budget adoption meetings.