Complete Document - City of Auburn

Budget Message (continued) May 28, 2002station in FY 04 ($400,000). There are some decreases in contractual services, commodities,and capital outlay for the departments. By cutting the departmental budgets in these areas,we have been able to afford the pay raises and capital items that are included in the budget.Also, several capital leases will pay out in FY 03 and FY 04, decreasing the amount that isneeded for debt service in the departmental portion of the General Fund budget. The result isthat we have fairly tight departmental budgets.General Fund - Comparative Expenditures by CategoryFY 02Proposed Budget - FY 03Increase (Decrease)Proposed Budget - FY 04Increase (Decrease)Mid-Bi Budget Budgeted Amount As % Budgeted Amount As %DepartmentsPersonal services $ 16,370,591 $ 16,772,140 $ 401,549 2.45% $ 17,637,703 865,563 5.16%Contractual services 2,965,231 3,225,623 260,392 8.78% 3,375,537 149,914 4.65%Commodities 1,760,051 1,698,157 (61,894) -3.52% 1,727,043 28,886 1.70%Capital outlay 649,252 1,307,154 657,902 101.33% 997,110 (310,044) -23.72%Debt service 449,121 394,088 (55,033) -12.25% 294,151 (99,937) -25.36%Total Departmental 22,194,246 23,397,162 1,202,916 5.42% 24,031,544 634,382 2.71%Non-DepartmentalGeneral operations 936,823 1,233,401 296,578 31.66% 1,062,493 (170,908) -13.86%Project operations 1,743,574 3,936,000 2,192,426 125.74% 2,458,500 (1,477,500) -37.54%Agency funding 4,781,536 4,861,312 79,776 1.67% 5,107,938 246,626 5.07%Transfers to other funds 1,521,048 1,927,985 406,937 26.75% 1,954,682 26,697 1.38%Debt service 1,812,616 2,152,039 339,423 18.73% 2,409,703 257,664 11.97%Total Non-Departmental 10,795,597 14,110,737 3,315,140 30.71% 12,993,316 (1,117,421) -7.92%General Fund Totals $ 32,989,843 $ 37,507,899 $ 4,518,056 13.70% $ 37,024,860 $ (483,039) -1.29%Growth in School funding for the biennium is substantial, as explained earlier, andcomprises a significant portion of the expenditure growth in the non-departmental budget forFY04. Total funding from the General Fund to the Schools for FY 03 increased only $48,519because there is no supplemental funding in addition to the fifteen mill equivalent. It isunderstood that school funding is the Council’s top priority and that it is important to fund theSchools at a level sufficient to provide high quality education for Auburn’s school children. Inorder for the Schools to be adequately funded in the face of unreliable funding from the Stateand for the City to address the issues that will face us in the future, the Council may need toconsider increasing revenue specifically for the Schools that will relieve some of the pressureon the General Fund.Nearly half of the increase in total General Fund budgeted expenditures for FY 03 isrepresented by the increase in the non-departmental Project Operations. This increase isaccounted for by the planned expenditure of $1 million for the Tennis Complex, which will befunded by borrowing and the borrowing repaid by memberships and other Complexrevenues, and another $1M for improvements to the Duck Samford Stadium. The amountincluded for the Stadium renovations is a worst-case scenario. The actual amount required tomake needed improvements will be based on the structural engineer’s inspection report. InFY 04, non-departmental expenditures are expected to decrease by $1.1 million.The sections of the budget following this Budget Message will provide detailedanalyses of the City’s revenues and expenditures.32