Sandra Emerson, Staff Writer
Posted: 11/04/2012 11:54:40 AM PST
Updated: 11/04/2012 05:15:48 PM PST
UPLAND – The City Council needs to free up $2 million annually in the general fund in order to regain financial stability, according to a report from City Manager Stephen Dunn.
Dunn will present his report and recommendations to the City Council for reining in the budget during a special meeting Wednesday at City Hall.
Dunn’s 48-page report includes short-term as well as long-term solutions for the City Council to consider.
“One of the things they need to tell me is do they want to continue providing the level of services we provide now,” Dunn said. “If so, then that sends us one direction or are there other priorities that are more important for example police and fire.”
The city’s general fund reserves were projected to be $4.2 million by the end of last fiscal year, but they ended up at $932,000, according to Dunn’s report.
The drop in reserves is attributed to the costs associated with cutting full-time positions 24 percent over the last 15 months, lower than projected revenues, high demand from citizens for services, lack of adequate systems for dealing with the city’s declining financial position as well as legal costs, according to the report.
City leaders need to find more than $8 million build the reserves to meet the city’s policy of saving 10 percent of expenditures as well as to eliminate funds with a deficit balance, including animal services, self-insurance and general capital improvement funds.
Short-term recommendations including approving $229,000 in budget reductions and approving a transfer of $250,000 in gas tax funds if necessary.
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