In 2009 the City's General Fund annual revenues were expected to be 9.8% higher than the amount received in 2000. The Fund's annual operating expenditures were budgeted to be 48.7% higher than in 2000. In my research I found a consistent pattern for the intervening years.

During the tenure of Manager Landeck the General fund's capital outlays were paid out of the annual revenues. A typical amount was $2-3 million per year. When the new City Manager, Phil Nelson, settled in, he changed the method in which capital outlays were funded.

Starting with him and continuing today, capital outlays are taken from the original $20.8 million in savings built up by Manager Landeck. By switching the capital expenses to the fund balance, it freed up millions each year for new operating programs and additional employees.

Now that we are minus $15 million and at our minimum fund balance, what does it mean for today? Capital outlays must once again come from annual revenues or the residents must approve the continuation of an expiring property tax this November. Cancelling capital outlays is not acceptable.

As a small positive, when the current Council adopted the 2009 budget, we reduced the General fund's operating expenditures by $1.3 million compared to 08. This year the economy convinced the Manager and all Council members to make substantial, additional reductions.

In my opinion you should not be satisfied until the Council reverses Nelson's policy and pays operating and capital expenses out of current revenues.