2002/10/30 Council Minutes - Laserfiche WebLink

October 30,2002 obligations and cannot be altered by Administrative or Council direction. Utility increases will be in large part due to required capital improvements • directed by the Department of Ecology. Asa result,the basic objective that guided the development of this budget was one of restraint.We began the balancing process with a projected deficit exceeding$7 million.We focused each decision in the budget-balancing efo1 by applying the general rule of"no new costs". All of these necessary cost Increases are Incorporated Into the proposed budget.It is important to understand that the portions of the budget that fall outside our fixed commitments must absorb the full impact of our decreasing revenues.That's the tough part. Decreasing the Contribution to Capital Improvement Program 4: Fora number of years the Council approved a contribution to Capital Improvement Program 4 equal to 3%of the general govemment annual amount which reached$2.7 million in the year 2001. Examples revenues—an of projects completed with CIP 4 funds include: • South Police Precinct • Fire Stations 5 and 6 • Hewitt Avenue Improvements • Main Library Entrance Remodel • Old City Hall Police Station Remodel The contribution to CIP 4,our general capital Improvements reserve account,was eliminated in 2002 and is being suspended until the overall revenue picture shows signs of improvement.The CIP 4 contains sufficient funds to continue only those capital improvements already approved by Council.I will call fora capital improvements review ireedy 2003 and,with the Council,well determine how best to allocate the remaining funds. No Layoffs:Many of our neighboring jurisdiction are preparing for reductions in workforce.In spite of our own revenue pressures,the proposed budget before you was drafted with no anticipated layoffs. During 2003 and most likely through 2004,we will continue to look closely 360