Council Approves First Read of Budget

At the September 8 meeting, Council unanimously approved the first read of the FY 09-10 budget. This year the assessed valuation will, maintaining the existing tax rate of .56963 per $100 valuation, provide $7,606,596 for General Fund operations, a 2% increase over last year’s adopted budget. This increase in ad valorem tax revenue is lower than the city anticipated. That, along with a decline in expected sales tax revenues, has prompted Council and staff to make some challenging choices.  No personnel salary increases in the way of CPI or merit is included in this budget and city-wide expenditures were reduced by 7.65%. Despite the challenging times, the FY 09/10 budget still provides for a proposed fund balance of approximately 25%. As previously shown in our five-year outlook, it is staff's recommendation, with Council’s support as a key policy decision, to maintain a higher Fund Balance for the current budget and next two or three years, as the city ascertains the full impact of commercial development – coupled with substantial residential build-out and resulting revenue decline associated with the loss of the new growth component in our market values. The proposed budget continues the focus on public safety and the delivery of core services to our residents.

In response to no personnel salary increase and as a way to show appreciation to City staff, Council approved a resolution authorizing a new paid leave day for all full time employees to be the Employee's Birthday. This new paid leave day also keeps the City competitive with surrounding cities. Council expressed appreciation for staff dedication and understanding during this upcoming year. The new paid leave day will begin with the new fiscal year on October 1, 2009.