| Former Mayor Schiavone responds to Budget Qs |
| Friday, April 21, 2006 9:52:28 AM - Middletown Ohio |
How do we go from $5m surplus to $1.5m shortfall in 1 year?
Where are the budget cuts to go with the revenue cuts?
David Schiavone: Thank you for your question concerning the budget. The 5M is approx. 15% of our budget we keep in reserve in case we need it for an emergency. The 2M shortfall for 2007 is a result of increased expenses and flat revenue.If we don't have enough revenue to cover the costs of operating the city next year we have two choices, we cut services or we take 2M out of the 5M, which reduces our reserves to 3M for 2008. That is why we are recommending a tax increase this year. The increase along with additonal jobs will bring in the revenue we need to maintain and in some cases restore the lost services we have had to cut over the past 3-4 years.If you have any further questions please contact me. |
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