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3 8 07 FY 08 Manager's Memo i5U~~ ~~~ MEMORANDUM March 8, 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Fiscal Year 2008 Revised Budget Recommendation The City Council has directed a restructuring of the Fire Department's two medical units to create 2 Captain and 4 Lieutenant Positions through attrition. The remaining 6 Medical Officer Positions would remain unchanged. Since the FY 2008 budget recommendation had anticipated some changes in the ambulance operations budget, the implementation of this restructuring in FY 2008 requires no additional changes in the recommended budget. In addition, the Fiscal Year 2008 Budget recommendation was prepared with the assumption that the new Diamond Jo facility would open April 30, 2008. The new schedule is that it will not open until after the end of the Fiscal Year 2008 budget year, which ends on June 30,2008. The new Diamond Jo facility is projected to have a negative impact on City of Dubuque revenues. Therefore, having two more months in Fiscal Year 2008 than originally projected will provide additional revenues to the Fiscal Year 2008 budget resources. The current projection is that there will be an additional one-time increase of $127,995 to allocate to a non-recurring item in the operating or capital budget. The City has not yet been officially notified, but we have been told by the Iowa Communities Assurance Pool (ICAP) that as a member of ICAP since 1986 the City is due a rebate on their reserve funds. It is anticipated the City would receive $225,000 in Fiscal Year 2008. The City expects official notification in April or May 2007. Therefore, in Fiscal Year 2008, the City will have approximately $352,995 in unanticipated revenues. The City has $75,000 per year budgeted to retire debt to buy land from Dubuque Initiatives for a future fire station just off of the Northwest Arterial at a cost of approximately $650,000. I respectfully recommend the $352,995 in unanticipated revenues in FY 2008 be used in addition to the $75,000 in money budgeted in Fiscal Year 2008 to acquire and develop land for a future fire station just off the Northwest Arterial. This would reduce the amount of money the City would need to borrow for property acquisition. I respectfully request Mayor and City Council approval of the revised FY 2008 budget recommendations. This has no impact on general fund operating revenues and preserves the goal of no property tax increase for the average homeowner. N~ Michael C. Van Milligen .......... MCVM/jml Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Jenny Larson, Budget Director