AGENDA #2g(1)

 

BUDGET WORKING PAPER

ENGINEERING DEPARTMENT

 

TO:                  W. Calvin Horton, Town Manager

 

FROM:            George Small, P.E., Director of Engineering

 

SUBJECT:       Two percent Budget Reduction Possibilities

 

DATE:             May 9, 2000

 

The following information discusses ways that the proposed Engineering Department operating and capital budget for FY2000-2001 might be reduced by 2% below the zero base budget from which it was developed.

 

APPROVED OPERATING AND CAPITAL BUDGET FY 1999-2000*

PROPOSED OPERATING AND CAPITAL BUDGET FOR FY 2000-2001

PERCENT DIFFERENCE

FY 1999-2000 AND

FY 2000-2001

 

$145,097

 

$124,523

 

-14.2%

 

*Zero Base Budget

 

The current Engineering Department budget request for operating and capital needs is already 14% below last year’s approved “zero base” budget for these categories.  This occurred because we did not include any capital equipment items in our current year budget request, which accounted for a $20,000 reduction from last year.

 

If the capital equipment budget is not considered, our requested budget for operations is 0.2% below the zero base amount from last year.  An additional 1.8% reduction would amount to $2,246.

 

If it is necessary to further reduce Engineering Department operations expenses, the following could be considered:

 

 

1.  Reduce business meetings and travel budget

     by $2,246.

 

This would require eliminating attendance at one out-of-state conference and one or two instate conferences by Engineering Personnel.

 

2.  Reduce dues and subscriptions by $800 and

     supplies by $1,446.

This would require eliminating membership in two professional organizations and dropping subscriptions to two publications.  General belt tightening across the board would be necessary in the supplies account.

 

3.  Reduce the stream water quality testing

     program by $2,246.

 

This would require eliminating about 16% of the samples we planned to have lab tested for pollutants.

 

4.  Reduce budget for repair and maintenance

     of equipment by $2,246.

This could require taking some equipment out of service if repairs become necessary and funds were not available for repairs.  We would defer routine maintenance costs for equipment not covered by specific maintenance contracts

 

I would be happy to discuss any or all of the above information at your convenience.