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October31,2001 <br /> However,there is a major difference between this proposed budget and <br /> the seven previous annual budgets I have presented to the City Council.This <br /> proposed budget,I believe,should be amended before it is adopted. This <br /> budget was fmaliaed m early September and was bared on revenue projections <br /> made before September II. <br /> The terrorist attacks of September II have caused many consequence <br /> including significant economic impacts in our community. Today.Budget <br /> Director Bill Cushman is forecasting 2002 revenue of$92,858,031,a reduction <br /> of$2,836,682 from his$95,694,713 revenue forecast in early September. I <br /> now believe$92,858,031 should be the revenue forecast for the 2002 general <br /> government budget. Therefore,I now request that my proposed budget be <br /> amended before v is adopted by the City Council. I will discuss the revised <br /> revewe forecasts fust,thea possible amendments to reduce expenses to match <br /> reduced revenues,and,finally,some major expense issues in 2002 and future <br /> yeas. I have attached a copy of the Executive Summary of the Strategic <br /> Forecast to this message for easy ref as we mwide future budget issues. <br /> 2002 Sales Taxes. When this proposed budget was prepared in early C) <br /> September,BBI Cushman projected sales tax revenue of$210,245,000 in 2002. <br /> Mr.Cushman now forecasts sales tax revenue of$19,000,000 in 2002,a <br /> reduction of$1,245,000,approximately 6%.The City has already experienced <br /> reduced sales tax collections during the past few months,meaning that 2001 <br /> sales taxes will fall below the 2001 budget forecast. <br /> 2002 B&O Its,,In early September,Bill Cushman forecasted 2002 <br /> business and occupation(B&O)tax revenue of$15,224,761 based on the latest <br /> aircraft delivery information available at the time.Since the terrorist snacks, <br /> the airline industry has been dramatically impacted and many airline customers <br /> have cancelled or delayed Boeing aircraft deliveries. Bill Cushman is now <br /> forecasting 2002 B&O ax revenue of$13,633,074,a reduction of$1,591,682 <br /> from his revenue forecast less than two months ago. <br /> Midcourse Corrections. The financial aftershocks of September 11 <br /> continue.We must remain vigilant in monitoring City revenues and expenseso <br /> s t e corm make midcourse corrections and reduce expense where necessary. <br /> For example,in response to reduced revenue collections this year,I recently <br /> 474 <br />