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2004-2005 City Government Budget Summary


June 28, 2003
City of Lincoln FY2004-05 City Government Budget Summary
 

Factors that Affected Revenue Forecasts for FY2004-05 City Budget

  • Sales tax revenue met, but did not exceed projections.
  • The Budget Office lowered from 3.25% to 2.5% the projected growth in the property tax base.
  • Other City revenue sources are projected to decrease (occupation taxes, fees, interest income, in-lieu of taxes).

    Mayor Cut $2.4 Million from Spending Requests

  • In March 2004, the City Departments requested funds totaling more than $130 million for FY2004-05 for the operating budget and capital improvement projects. Mayor Seng cut $2.4 million from the requested amounts, lowering the proposed budget to $125.8 million, or a 4-percent increase.
  • In addition, City Departments requested $5.2 million of general tax funds for Capital Improvement Projects in FY2004-05. Mayor Seng cut or delayed $3.3 million in proposed capital projects using general funds lowering the amount to $1.9 million next year.
  • The City Budget would increase from $121 million this year to $125.8 million next year.

    Costs the City Cannot Control

  • Higher fuel costs for Police, Fire, and Public Works vehicles will increase spending $100,000.
  • Lincoln Public Schools not paying its share of the nearly $800,000 total cost for 15 police officers at schools.
  • Cost to comply with unfunded federal mandate on storm water requirements is $260,000.
  • Pershing Center tax subsidy increasing $100,000.
  • The cost of the County-City Emergency Management Agency following the tornado and storms is expected to rise, but the amount is not yet known.

    Actions Taken to Limit a Change in the Tax Rate

  • City to spend $3.5 million of cash reserves.
  • City to restructure the financing of street lights, saving $600,000 annually.
  • Spend $500,000 of unused bond funds from completed Library and Parks projects.
  • Travel and discretionary funds frozen at current levels.
  • Antelope Senior Center proposed to close.
  • Meadowlane Pool evening hours changed to party rental use to increase revenue and reduce expense.
  • Reduce City subsidy to 911 Center by $240,000 by increasing the telephone surcharge 25 cents.

    Property Tax Rate Still Less Than in 2002

  • The City property tax rate has been reduced 44 percent since 1994 when it was 51.9 cents per $100 of assessed value.
  • The City property tax rate in FY2002-03 was 31.4 cents per $100 assessed value.
  • Last summer in the FY2003-04 budget, Mayor Seng proposed and the Council approved cutting the City property tax rate 2.4 cents, lowering the rate to 29 cents.
  • For the FY2004-05, the City proposes restoring 1 cent.
  • Separately, one-half cent will be added to the tax rate due to two voter-approved storm water bond issues approved in 2002 and 2003.
  • The proposed FY2004-05 City property tax rate will still be less than it was in 2002.

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