AgdaPkt 2003-03-10 - Laserfiche WebLink

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4.0 - 2 Fiscal Years in (000 2002 -03 2003 -04 2004 -05 2005 -06 s a a a Total Revenues 60,002 63,659 67,399 69,783 Total Expenditures (63,556) (68,934) (76,843) (81,795) Adjustments: Police 3% @ 50 (1,260) State takeaways (1,000) (1,000) (1,000) Deficit - $ (6,275) (3,554) (10,444) (14,272) Deficit - % (5.59 %) (9.10 %) (13.59 %) (17.45 %) Our Solution Obviously it is not rocket science that we must reduce ongoing expenditures while at the same time increase revenue where possible. We can - --rease revenue through appropriate new development that fits our general plan ar . Council goals, and by a general recovery of the economy in the Bay Area. Both of these are doable, but will take time, and hence it is appropriate that we use reserves to help solve the problem over three years as we stated in a previous staff report to you. The department heads looked at three scenarios of cutting expenditures and drawing down reserves. These three scenarios all start with the present Council policy to deal with our immediate deficit for FY 02/03 by drawing down reserves to handle two thirds of this problem and to cut expenditures to handle the other third of this problem. Below we have listed the three scenarios: Scenario A FY 02/03 Estimated deficit $3.5M* Expenditure cuts = 33% of deficit Draw down from reserves = 66% of deficit FY 03/04 Estimated deficit $6.3M* Expenditure cuts = 67% of deficit Draw down from reserves = 33% of deficit FY 04/05 Estimated deficit $10.4M* Expenditure cuts = 100% of deficit No use of reserves FY 05/06 Estimated deficit $14.3M* Expenditure cuts = 100% of deficit No use of reserves Page 2 of 5