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RESOLUTION FOR DISCUSSION PURPOSES TO BE REFERRED TO THE FINANCE COMMITTEE CONCERNING INFORMATION REGARDING THE PROPOSED 2008 BUDGET
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WHEREAS, the City Council of the City of Jonesboro has a constitutional duty to approve or disapprove the mayor’s proposed budget each year;
WHEREAS, until September 30, 2007, the City Council had not received financial reports from the mayor’s finance staff for approximately 18 months;
WHEREAS, the most recent Legislative Audit Report for the City of Jonesboro indicates that the City of Jonesboro’s day-to-day operating reserve balances were $22.5 million as of December 31, 2005;
WHEREAS, the mayor’s Finance Director’s report as of September 30, 2007, indicates that the city’s operating reserve balance were $19.1 million, a decrease of $3.4 million;
WHEREAS, Mayor Formon’s 2008 budget proposes an additional $3.6 million in deficit spending for operating expenditures, but states the city’s January 1, 2008 operating fund reserves balance at $23 million which conflicts with the Finance Director’s report of September 30, 2007, by nearly $4 million.
WHEREAS, the City Council adopted Resolution No. 2003:30 which requires the city to maintain minimum financial reserve balances of 30% of the city’s annual operational expenditures as an emergency fund in case of catastrophic conditions caused by earthquake, tornado, or some other natural or man-made disaster; and
WHEREAS, the City Council wishes to express its concern and reservation that continued deficit spending as proposed by Mayor Formon in his 2007 and 2008 budgets will cause the city to reach its minimum emergency reserve limits by 2009 or 2010.
THEREFORE, BE IT RESOLVED by the City Council of the City of Jonesboro that the City Council requests the following information from Mayor Formon and his staff to assist the City Council in addressing Mayor Formon’s proposed budget:
1. A list of all new full time equivalent (FTE) positions created in years 2006 and 2007 an...
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