| Synopsis: |
The fiscal year 2004-05 budget is submitted to the City
Council for adoption along with the required appropriations for the fiscal
year.
Since the time that the Budget Committee approved the budget there has been
additional discussion of the public use and funding of "The Grove." The Approved
Budget does not include appropriations to maintain The Grove nor does it
recognize potential revenue such as rental income. The discussions have revolved
around providing some level of temporary support for FY 2004-05 until details
of a more finite plan can be established.
One method to accomplish this task is for Council to appropriate maintenance
dollars up to the estimated revenues, providing some monies to go toward
operations and maintenance until a more complete program is developed. This
would provide additional time for a more complete plan for funding the level
of operations to be identified. Any shortfall in revenues as compared to
operational costs would require Council action during FY 2004-05 in the way
of transfers of appropriation from Contingency or other programs that are
under spent. |
| Background: |
The Budget Committee and/or Budget Sub Committee met numerous times this
winter and spring and thoroughly reviewed this budget. On May 13, 2004, the
Budget Committee approved the budget and recommended it for adoption. The
combined total appropriation for all funds is $75,292,838. This number does
not include the unappropriated balance of $18,165,952.
These amounts may be adjusted as determined by Council within the guidelines
established by Oregon Budget Law. Currently, the one change that is awaiting
Council direction is the increase of appropriations in the General Fund,
Finance - Miscellaneous Division to budget and account for expenses for The
Grove.
Estimates on expenses and revenues vary and depend greatly upon what activities
do occur and their propensity to generate income in the way of fees or rental
income. Preliminary costs range from $42,000 to $100,000 depending upon
activities with only $35,000 as estimated rental revenue.
Funding options remain as:
| 1. |
Raise fees or charges or finding a new revenue source |
| 2. |
Cut other programs or staff |
| 3. |
Reduce fund balance |
It is difficult to recommend any of the above, especially either #2 or #3,
at this time given the uncertainty of what programs will be offered and what
their related costs could be. Rather than estimate high on expenses and revenue
as they relate to unidentified activities, it may be best to estimate small
and anticipate a breakeven program until better information is obtained.
An off-setting revenue would be added to Miscellaneous Revenues for rental
income thus minimizing the impact on fund balance until specifics are identified.
Any shortfall would need to be funded through a reduction in costs or a transfer
of appropriation. |
