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1993: $400,000 - Risk Management Fund; $200,000 - Water and <br />Sewer Fund; $100,000 - Telephone Fund; $300,000 - Capital <br />Fund; $200,000 - Facility Repair Fund. Mr. Hendrix explained <br />that these funds have built up over a period of time and <br />experience has led staff to believe that it is safe to reduce <br />the balances in the funds and added that the General Fund <br />balance remains healthy and available should an emergency <br />arise. <br /> <br /> Ms. Slaughter stated that generally she would like <br />Council to look at finding some other cuts rather than <br />reducing the funds as recommended by Mr. Hendrix and to look <br />at additional sources of revenue. Ms. Slaughter stated that <br />the situation raises the issue of whether the City should <br />continue to provide dumpster service given 'the cost, or <br />whether additional fees for the service should be charged. <br /> <br /> Mr. Toscano stated that he felt the dumpster issue <br />needed to be studied further and did not think it should be <br />done in the context of the budget under consideration. Mr. <br />Toscano added that he did not~ think the projected revenue <br />shortfall could be made up in the future without a reduction <br />in the City's workforce. <br /> <br /> Ms. Daugherty stated that she did not think Council <br />should panic with regard to the revenue shortfall and start <br />cutting programs, but should look at the situation in the <br />long-term. Ms. Daugherty stated that considering the revenue <br />outlook it seemed imprudent to reduce the tax rate at this <br />time, particularly in light of the fact that she has not <br />heard support for reducing the rate. Ms. Daugherty added <br />that she would support a cigarette tax. <br /> <br /> Mr. Toscano stated that if a fee were imposed for the <br />large item pickup the tax rate could be reduced by one cent <br />and if a cigarette tax were imposed, one third of the revenue <br />could be used to further reduce the tax rate by 1/2 cent. <br />Mr. Toscano stated that he felt the cigarette tax would <br />spread the tax burden and lessen the property tax burden. <br /> <br /> Ms. Daugherty stated that she was not sure she favored <br />charging residential customers for the large item pickup. <br /> <br /> Ms. Slaughter stated that she would prefer to have the <br />large item pickup and dumpster service funding through user <br />fees rather than in the tax rate and that she would support a <br />cigarette tax. Ms. Slaughter also stated that she would only <br />support adding new programs to the budget if additional cuts <br />are made. Ms. Slaughter stated that she would favor <br />targeting part of the cigarette tax for a tax reduction. <br /> <br /> Mr. Vandever recommended that Council address what they <br />would want in additional savings and then look at additional <br />revenues if appropriate. <br /> <br /> Mr. Toscano stated that Council may not want to exactly <br />match cuts with expenditures and suggested that staff find a <br />total of $75,000 in savings in the City's portion of the <br />budget, with some departments exempted, and another 1% in <br />savings be made by reducing agency funding for a total of <br />~90,000. <br /> <br /> Mr. Vandever stated that he would prefer to see a 3% <br />reduction in the proposed budget with fewer exemptions to <br />those departments which are cut. <br /> <br /> Ms. Slaughter suggested that $150,000 be cut from the <br />proposed budget and that the tax rate be cut by 2 cents. <br /> <br /> Mr. Vandever recommended that staff be instructed to <br />find some percentage of savings, with exempt, categories, <br />without specifying what should be cut now and Council could <br />decide later on the percentage and areas to be cut. <br /> <br /> <br />