BUDGET COMMITTEEJanuary 29, 2013

Previous Actions Since 2010

Previous Actions Since 2010 (cont.)

No COLA’s - Non-represented and Management

Police voluntarily gave up contracted COLA and reduced health benefits

Deferred Infrastructure Preventive Maintenance

Cash reserves reduced Unions agreed to below market contracts Raised utility rates

The Challenge So how much do we need to balance the

budget? Choices:

New revenue Cut services Reduce reserves Defer expenditures (e.g. preventive

maintenance, capital improvements) Combination

Alternatives Considered Option Levy Fee increases Full Faith and Credit refinancing GO Bond refinancing Service reductions Mix of service reductions and new

revenue

Why GO Bond

Net increase to taxpayers of only $.25 Should not hurt City’s credit rating (might

even help) Reduced interest cost Marketable Estimated $250-300,000 savings Generates $400-450,000 new revenue to

solve $700,000 problem thanks to above savings

Source of Refinancing

2010 2011 2012 2013 2014 2015 2016 2017 2018 $-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

2014 GO2003 GO