Brookings Banter

It is understandable that the media doesn't get deep into the specifics of the city budget it's complicated, tedious, and boring.  Their job is to inform readers and listeners, not put them to sleep.  They do a great job with the highlights but here is a little more information.

• Yes the Council directed the staff to increase expenditures by $237,000.  But we have the funds, our reserves are growing. 
• Over the last five years we have been in a recovery mode.  2000 - 2003 saw negative sales tax growth and a decrease in Utilities transfers.  Equipment and facilities expenditures (capital) were basically $0 and operational expenses saw no increase.
• 2004 - 2005 was a recovery year and the council started using second penny funds to replace badly needed equipment.
• In 2006 we returned to a growing sales tax base and started to build reserves and 2007 will be at least as good as 2006.
• At the end of 2007 our estimated undesignated general fund balance should be $5,000,000.  Second Penny tax fund undesignated balance should be $3,000,000
• City staff has done a great job keeping down costs and still improving city services.  Council policy dictates that the budget brought to the council can not increase more than the cost of living.  With those restrictions the city was able to add 2 more staff that will improve city services.  Our great financial position would not be possible without the hard work of the staff to keep costs down.
• Here is a breakdown of where the $237,000 in increases will come from.
• Code Enforcement - $60,000 from undesignated general fund balance.  Hopefully we will see an increase in revenue and not have to use "savings".  This budget will show more expense than revenue due to the code enforcement addition.  Sometimes called a structural deficit.
• Moriarty Park - $60,000 from the second penny tax fund.
• Retail Recruitment funding for the BEDC $42,000 from the BBB Tax Fund.
• Boys & Girls Club - $75,000 from other places in general fund.  The Council asked Rita to find the money.