For this assignment, I want you to imagine again that you are a City Manager Given our 9 14 and our 9 21 class discussion topic (Finance, and the Budget Process), you need to write a policy paper outlining how you plan to address an expected financial challenge for the upcoming fiscal year Consider the following factors when writing your paper As you and your staff were compiling the Proposed Budget for the coming fiscal year, your Finance Department was notified by the Property Appraiser of the assessed values for all properties within your City limits Residential property values in your City are expected to decrease for the coming fiscal year As such, your property tax revenues will be negatively impacted Property taxes represent approximately 50 of your General Fund revenues for your City Remember, the General Fund is the most flexible when it comes to how property tax dollars can be spent vs other funding sources i e special revenue funds (bldg permit fees) and enterprise funds (Garbage service fees) The General Fund is the primary funding source for essential services such as public safety, public works, parks recreation, and libraries Additionally further compounding the issue your expenditures for salaries and benefits are anticipated to increase due to collective bargaining agreements with various labor unions, and contractual agreements for services such as mowing of parks You must balance the budget What will you do Explain your course of action Will you propose a millage rate increase Will you try and make up the difference by cutting costs services Will you do a combination of these two The chart below provides a financial summary of the issues Remember, the millage rate calculation is Assessed value millage rate 1,000 FY2023 FY2024 Difference Assessed Values $3,000,000,000 $2,500,000,000 ($500,000,000) Current Millage Rate $3 9947 $3 9947 Tax Revenue $11,984,100 $9,986,750 ($1,997,350) Salary Benefits $10,000,000 $10,250,000 Operating Costs $1,984,100 $2,250,000 Total Expenses $11,984,100 $12,500,000 $515,900 Rev vs Exp DEFICIT $0 $(2,513,250)

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For this assignment, I want you to imagine - again - that you are a City Manager. Given our 9/14 and our 9/21 class discussion

For this assignment, I want you to imagine - again - that you are a City Manager. Given our 9/14 and our 9/21 class discussion topic (Finance, and the Budget Process), you need to write a policy paper outlining how you plan to address an expected financial challenge for the upcoming fiscal year. Consider the following factors when writing your paper:

As you and your staff were compiling the Proposed Budget for the coming fiscal year, your Finance Department was notified by the Property Appraiser of the assessed values for all properties within your City limits. Residential property values in your City are expected to decrease for the coming fiscal year. As such, your property tax revenues will be negatively impacted.
Property taxes represent approximately 50% of your General Fund revenues for your City. Remember, the General Fund is the most "flexible" when it comes to how property tax dollars can be spent vs. other funding sources i.e.: special revenue funds (bldg. permit fees) and enterprise funds (Garbage service fees). The General Fund is the primary funding source for essential services such as public safety, public works, parks & recreation, and libraries.
Additionally - further compounding the issue - your expenditures for salaries and benefits are anticipated to increase due to collective bargaining agreements with various labor unions, and contractual agreements for services such as mowing of parks.

You must balance the budget. What will you do? Explain your course of action.

Will you propose a millage rate increase? Will you try and make up the difference by cutting costs/services? Will you do a combination of these two?
The chart below provides a financial summary of the issues. Remember, the millage rate calculation is: Assessed value * millage rate / 1,000.

	FY2023	FY2024	Difference
Assessed Values	$3,000,000,000	$2,500,000,000	($500,000,000)
Current Millage Rate	$3.9947	$3.9947
Tax Revenue	$11,984,100	$9,986,750	($1,997,350)

Salary & Benefits	$10,000,000	$10,250,000
Operating Costs	$1,984,100	$2,250,000
Total Expenses	$11,984,100	$12,500,000	$515,900

Rev vs. Exp DEFICIT	$0	$(2,513,250)