2007 BUDGET - Laserfiche WebLink

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Budget Hi~hli~hts Continuation of the reserve policy that states: o For the General Fund, a reserve of a minimum of 15% of current year expenditures for operations and debt service will be maintained which is approximately one and one-half of operating expenditures. The reserve in the General Fund for 2007 is $1,934,396. o For Enterprise Funds, a reserve in the amount of a year's estimated depreciation will be callculated. The reserve in the Enterprise Funds is $1,582,538 for 2007. ~ Sales tax revenues are projected to decline in 2007. The City had a shortfall of revenue collections from its home improvement centers of (33%) due to competition from surrounding cities. This decline is expected to level off in 2007. The City has adopted an Urban Renewal Plan & District and a Business Assistance Program which should help drive new sales tax dollars into the region through incentives over the next 2-5 years. ~ In 2007, the City will begin billing utility customers for storm water services. These services will be accounted for in the Enterprise Funds. In the past, the City had subsidized the expenses related to storm water services from the General Fund. The City was able to shift approximately $100,000 in operations costs to the enterprise fund in 2007. Funding in the Capital Improverrient Fund continues for street improvements. In addition, the City will be focused on two major street projects in 2007: Dillon Road - 96~' to 104` and S. Boulder Road/'Highway 42 improvements. 4! Iri order for the City to cut operating expenditures to offset declines in sales tax revenues, the City had to make v;rrious cuts to personnel services. The City budgeted reductions of over $300,000 from personnel services through reorganization, four mandatory furlough days and some benefit changes. All expenses approved in the 2007 budget were approved at the: 2006 budget level with no increases in line item budgets allowed. • The City approved a 3% rate increase in water and sewer charges. Even with this increase Louisville has the third lowest water rates in the region based on annual usage of 120,000 gallons. • The City is increasing fund balances in the Enterprise Funds for participation in the Windy Gap Water Storage Project that is to begin in 2006 and continue through 2007. The total budget for this project is $6.6 million. The City allocates 3/8% of its 3.375% sales tax rate to the Conservation Trust -Land Acquisition fund for future purchases of open space. The City approved a reallocation of the remaining sales tax revenues collections to the General Fund at 67% and the Capital Projects Funds at 33%. This reallocation transferred approximately $500,000 of revenues that would have gone to the Capital Projects Fund back to the General Fund. The reasoning is that most. large capital improvements are now complete within the City and focus will shift to support of operations. ~ Although the capital projects in the Capital Improvement Fund have been reduced for 2007, the°City still has many projects budgeted in the Conservation Trust -Lottery iii