The City's has finally published its Annual Budget (Budget). In reviewing all of the documents relating to the Budget, the discussion of "structural deficit" seems to have disappeared; although an examination of the Budget and it 10 year projections clearly demonstrates that the City still has an increasing "structural deficit".

The City's tax income has been reduced by about 6% from the estimate from last years Budget, although tax revenue for that Budget was estimated to increase by about 3%. With expenditures increasing, it is not difficult to understand why the City has a "structural deficit".

With the final Budget, the City Manager has stated that the expenditures in the budget need to be decreased by 3% (approximately $1,500,000). He is working with the departments so that he will have a recommendation at the July Council meeting; at the time the Council adopts the Budget.

The General Fund Reserve has just about disappeared and the Emergency Reserve is substantially less than is recommended.