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Show Arlene Loble's Budget Recommendations The Finance Director, Jon Nelson has prepared a summary of our revenues and expenditures to date and projections for additional revenues and expenditures through June 30th. Overall, revenues are down 21 over what was originally budgeted. That revenue reduction is the result primarily of three factors: (1) decrease in impact' fees and related revenues in the Capital Improvement Fund; (2) loans to the Redevelopment Agency that have not been repaid that were anticipated as revenues in the Transportation and General Funds; and (3) deficits in the Water Fund because of late implementation of the new metered rate structure and a downturn in connection fees. In order to balance the budget on reduced revenues, it is my recommendation thar expenditures be reduced to offset this anticipated revenue shortfall. Operating fund expenditures have been reduced by an average of 7 of what was originally budgeted this year. Even with the cut-backs, the Water Fund and the Landfill Fund will continue to operate at a substantial deficit. The major curtailment in expenditures in order to cover the deficits in redevelopment, water, and landfill, will have to come into the Capital Improvement Program where despite the downturn in revenues this year, the Capital Improvement Fund will have a balance of a little more than $1 million at the end of this fiscal year. That balance is primarily due to the sale of the Aerie property for $775,000. Because of the deficits in other funds, my recommendations include a greatly curtailed Capital Improvement Program for the remainder of this fiscal year. All Capital Improvement Projects budgeted but not yet contracted have been eliminated with the exception of the street signs, which are included in the Revenue Sharing Budget. Cut from this year's Capital Improvment Program are the Swede Alley connection with the Belt Route which really will not be feasible until the latter part of the summer, when the Belt Route construction is all but completed and the Kearns Boulevard improvements. Also cut from this year's General Fund Operating Budget, as well as from our Revenue Sharing Projects, are street improvement and repaving projects. Given the condition of Park City streets, my recommendations to you for the upcoming year's Capital Improvement Program will include a major priority for repaving on streets such as Monitor and Lucky John. Eliminating those kinds of routine maintenance expenditures will be a cost savings to the city in the long run. The 1983-1984 Capital Improvement Budget will be presented at the first City Council meeting in April. The revised budget for this fiscal year, as presented, is a conservative one - and perhaps overly so. The Building Official and the Planning Director believe there will be an upturn in planning and construction-related activities this spring that should bring revenues from planning and building related fees very close to our original projected budget. Nonetheless, I recommend adopting the revised budget and maintaining a conservative hold on all expenditures in order to protect our cash position. A large portion of the reason why Park City's financial state is at issue is that simply that for the first time, Park City's financial house, is in fact, in order, and we are able to track revenues and expenditures by fund in detail, and on a current month-to-month basis. This is all to the credit Park City's Finance Director, Jon Nelson, who has in the year that he has been with us, completely revamped our accounting procedures. ' 4 ' ' !. 1 ' ' r V i "... .. li ; II . ' i I . i. I : i ' . : '. I I , i : t . r ' , |