AGENDA #2a(1)

BUDGET WORKING PAPER

TO:                  W. Calvin Horton, Town Manager

FROM:            Joyce A. Smith, Town Clerk

SUBJECT:       Possible Reductions in the Mayor/Council/Manager/Clerk FY 2000-2001 Budget

DATE:             May 10, 2000

The current and recommended operating budgets (exclusive of personnel costs) for the administrative divisions are as follows:

      *Reflects deletion of telephone charges for the Council previously budgeted in the Mayor’s budget.

    **Reflects increase in travel allowance per Council discussion at April 12^th budget work session ($400),

        and addition of funds for copying costs ($200).

  ***Reflects transfer of telephone charges previously budgeted in the Mayor’s budget ($4,450), and dues

        to the Greater Triangle Regional Council ($2,000) previously unbudgeted.

****Reflects increase in travel allowance per Council discussion at April 12^th budget work session ($400

        per Council member).

OPTIONS FOR REDUCTIONS TO THE OPERATING BUDGET

MAYOR’S OFFICE

“0” Increase

To bring the Mayor’s proposed budget to a zero increase would require a reduction of $600.

            Options                                               Consequences of Proposed Reductions

1. Reduce travel by $400, and reduce               Would keep travel allowance at current level.

    telephone charges by $200.                          Reduction in allowable long distance calls should

                                                                        not significantly impact our ability to conduct

                                                                        necessary business.

2. Reduce professional services by                    Would reduce ability to contract with outside agencies

    $200, reduce telephone charges by               or others if needed.  Other reductions would not

    $200, and reduce supplies by $200.  significantly affect our ability to conduct necessary

business.

2% Reduction

Reducing the Mayor’s budget by 2% would require an additional reduction of $203.

            Options                                               Consequences of Proposed Reductions

1. Reduce travel from $3,150 to $2,947.          May limit participation in national, regional or State

conferences.

2. Reduce supplies from $3,300 to $3,097.       Would limit flexibility in responding to unanticipated

needs.

3. Reduce telephone costs from $1,700 to        Would limit number of allowable long distance calls.

$1,497.

4. Reduce maintenance and repair for                May affect ability to keep present equipment in

equipment from $350 to $147.                      good repair.

TOWN COUNCIL

“0” Increase

To bring the Council’s proposed budget to a zero increase would require a reduction of $4,442.

            Options                                               Consequences of Proposed Reductions

1. Reduce business meetings/travel from            Removes suggested increase in travel and reduces

$19,750 to $15,308.                                     travel to $1,645 per Council member.

2. Reduce business meetings/travel from            Eliminates funds for cost of facility for Planning

$19,750 to $15,308.                                     Retreat ($1,000) and reduces travel to $1,770 per

Council member.

3. Reduce telephone charges from $4,450         Would limit number of allowable long distance calls,

to  $1,800 and professional services  and limit refreshments provided at Council meetings

from $3,300 to $1,508.                                 and other functions.

2% Reduction

A reduction of 2% over the current year’s budget would require an additional $1,449 cut.

            Options                                               Consequences of Proposed Reductions

1. Reduce dues and subscriptions from  Would eliminate subscriptions to two publications,

$45,200 to $44,950, reduce business           would require that the Council’s Planning Retreat

meetings/travel from $15,308 to                   be held in a Town or “free” facility; and further

$14,308, and reduce telephone charges        limit allowable long distance calls.

from $1,800 to $1601, for a total of

$1,449.

2. Reduce dues and subscriptions as noted        Eliminates subscriptions as noted above, and further

above ($250), and further reduce travel        reduces travel to $1,495 per Council member.

from $14,308 as noted above to $13,109    

($1,199), for a total of $1,449.

3. Reduce dues and subscriptions and tele-       Eliminates subscriptions as noted above, but would

phone charges as noted above ($250 and      limit travel to $1,520 per Council member.

$199, respectively), and reduce travel

from $14,308 to $13,308, for a total of

$1,449.

4. Reduce dues and subscriptions as noted        Eliminates subscriptions as noted above, and reduces

above ($250), reduce supplies from travel to $1,676 per Council member.  The reduction

$1,200 to $900 ($300), and reduce             in supplies may not result in inflexibility in responding

travel from $14,308 to $13,409                   to unanticipated needs.

($899), for a total of $1,449.

MANAGER’S OFFICE

“O” Increase

To bring the Manager’s budget to a zero increase would require a reduction of $8,604.

            Options                                               Consequences of Proposed Reductions

1. Delete capital equipment costs of                  Would lengthen the replacement cycle of printers from

$2,500, reduce travel from $8,300               5 to 6 years, would remove one staff member from

to $6,200, reduce supplies from                   participation in a conference, would delay computer

$11,100 to $9,100, reduce computer           replacement schedule, and would limit allowable long

replacement fund by $1,471, and                  distance calls.  A reduction in supplies may not result

reduce telephone charges from                     in relative inflexibility in responding to unanticipated

$6,100 to $5,567, for a total of $8,604.       needs.

2. Reduce capital equipment and travel  Would lengthen the replacement cycle of printers from

as noted above; eliminate computer  5 to 6 years, would remove one staff member from

replacement funds of $2,922, and                 participation in a conference, and would eliminate

reduce supplies from $11,100 to                  computer replacement funds for 2000-2001.  A reduction

$10,018, for a total of $8,604.                     in supplies may not result in relative inflexibility in

responding to unanticipated needs.

3. Reduce capital equipment and travel  Would lengthen the replacement cycle of printers from

as noted above; reduce computer re-            5 to 6  years, would remove one staff member from

placement fund by $1,082, and reduce          participation in a conference, would delay computer

supplies from $11,100 to $9,100, for            replacement schedule, and may result in inflexibility

a total of $8,604.                                          in responding to unanticipated supply needs.

2% Reduction

A further 2% reduction to the current year’s budget would require an additional $1,578 reduction.

            Options                                               Consequences of Proposed Reductions

1. Reduce personnel agency charges by            Would limit our ability to hire temporary help (during

$1,578.                                                        staff vacation/sick leave).

2. Reduce dues/subscriptions by $500, Would reduce our ability to respond to requests for

reduce professional services by $500,            publications and/or subscriptions, would reduce our

and reduce personnel agency charges            ability to contract with outside agencies if necessary, and

by $578, for a total of $1,578.                      would limit our ability to hire temporary help (during

                                                                     staff vacation/sick leave).

3. Reduce dues/subscriptions by $500, Would reduce our ability to respond to requests for

reduce professional services by $500,           publications and/or subscriptions, would reduce our

and reduce telephone charges by $578,         ability to contract with outside agencies if necessary, and

for a total of $1,578.                         would limit allowable long distance calls.

CLERK’S OFFICE

“O” Increase

A reduction of $847 would be necessary to bring the Clerk’s proposed budget to a zero increase.

            Options                                               Consequences of Proposed Reductions

1. Reduce telephone charges from $2,600         May limit use of transcription services for prepara-

to $2,300, reduce miscellaneous con-           tion of draft Council minutes and would reduce

tracted services from $13,900 to                   ability to repair and maintain existing equipment.

$13,500, and reduce maintenance and          Reduction in allowable long distance calls may not

repair of equipment from $2,750 to   affect our ability to conduct business as necessary.

$2,603, for a total of $847.

2. Reduce miscellaneous contracted                  May require that some draft Council minutes be

services from $13, 900 to $13,053.              prepared in-house, causing a shift in priorities in the

                                                                        Clerk’s duties.

3. Reduce professional services from                 May cause delay in printing supplements to the

$20,000 to $19,153.                                     Code of Ordinances.

2% Reduction

A reduction of 2% of the current year’s budget would require an additional decrease of $2,119.

            Options                                               Consequences of Proposed Reductions

1. Delay purchase of double-side laser  Would lengthen the replacement cycle from single-

printer, $2,500.                                            side to double-side printers from 3 to 4 years.

2. Reduce miscellaneous contracted                  Would require that some draft Council minutes be

services from 13,053 to $11,434, and          prepared in-house, causing a shift in priorities in the

advertising from $6,600 to $6,100,   Clerk’s duties.  Would limit flexibility in responding

for a total of $2,119.                                    to requests for unscheduled ads as requested by the

Council.

3. Reduce supplies from $16,000 to                  May affect ability to provide staff with necessary

$13,881.                                                      resources.