1h. 1991 Budget Reductions CITYOF
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CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900 • FAX (612) 937-5739
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' MEMORANDUM
TO: Mayor and City Council •
FROM: Don Ashworth, City Manager
DATE: June 10, 1991
1 SUBJ: Formalize Reductions in the 1991 Budget
I wish to thank each of our department heads for submitting a
recommended list of potential budgetary cuts earlier this year. At
that time, Governor Carlson had recommended and the Legislature
1 approved cuts to local governments approximating $50 million
(translates into a $56, 000 reduction for Chanhassen) . Although the
Governor was advocating an additional $700 million in local
1 government aid reductions, the practicality of such did not appear
likely, i.e. if approved, property tax increases of 50% to 70%
would be seen in the core cities and most of out-state. For our
planning purposes, we set in reserve an additional $56, 000
($112 , 000) . The initial list submitted by departments totaled
slightly less than the desired result, i.e. $103, 000 versus
$112 , 000. No further refinement appeared reasonable recognizing
1 that the legislative process had not started.
Although the final numbers for Chanhassen are still not known, the
1 total amount of cuts on a state-wide basis have been set. Unless
some form of anomaly occurs in the final formula calculations, the
1991 cuts for Chanhassen should approximate $93,000. I have added
' to the revised numbers "adds", i.e. the city newsletter has gained
significant popularity by our citizens and Council, but its costs
were not originally included in the 1991 budget. To ensure that
the set aside expenditures identified by department heads do not
' become "accidently spent", I feel it imperative to formally make
those reductions to the 1991 budget, i.e. approve the attached
resolution reducing the 1991 budget.
' Assuming the City Council acts to approve these reductions, I will
have the Finance Department include these revised numbers in all
budgetary reports for the remainder of 1991.
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Mayor and City Council
June 10, 1991
Page 2
' Recommendation
This office would recommend that the City Council approve the
' attached resolution officially reducing the 1991 budget in the
total amount of $93, 000.
' Note to All Department Heads:
Thank you again for your cooperation in helping the city get
' through this rather trying time frame. I think it is fair to say
that cities and the count faired much better than some had
predicted at the beginning of the legislative session. Should the
' dedicated sales tax proposal become a reality, I sincerely believe
that our interaction (necessity for begging) with the state will be
significantly diminished in future years. I additionally believe
that through a dedicated sales tax, future growth in our revenue
' base can occur and such will help our efforts to reduce
Chanhassen's reliance on the property tax.
CiT.)
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City of Chanhassen 11
Carver and Hennepin Counties, Minnesota
DATE: June 10, 1991 RESOLUTION NO: '
MOTION BY: SECONDED BY:
A RESOLUTION REDUCING THE 1991 BUDGET '
WHEREAS, Governor Carlson and the Minnesota Legislature have
approved cuts to local governments in the amount of $50 million;
. . and
WHEREAS, As a result of state cuts, the City of Chanhassen
must reduce the 1991 Budget by $93,204.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Chanhassen that the 1991 Budget is hereby amended as follows:
Amount of
Administration Adjustment
117 - 5,500
113 - 2,500
112 - 2,469
Liquor Revenue + 2 ,500
Total -12,469
Public Works
131 -27,700
132 -24,600
135 - 5,800
137 - 7 ,000
Total -65, 100 '
Planning
151 - 385 I
152 - 4,250
Total - 4,635 '
Public Safety
126 - 3,600
123 - 200
121 - 4,500
125 - 2,700
Total -11,000
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Amount of
Adjustment
' Park and Recreation
145 - 9, 000
Add Newsletter + 9 , 000
' Total -0-
TOTAL DEPT. CUTS -93,204
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Passed and adopted by the Chanhassen City Council this day of
, 1990.
ATTEST:
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' Don Ashworth, City Clerk/Manager Donald J. Chmiel, Mayor
YES NO ABSENT
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