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role in addressing the aid reductions for 2003, but it also could begin early enough to <br />assist with the reductions for the 2004 State Aid losses. <br /> <br />Staff recognizes the Council may not desire to make all the reductions as identified in the <br />proposed 2003 budget adjustments; however, they have been listed for consideration. <br />Some of the budget expenditure line items will have a significant impact on the public. <br />Reducing seasonal help will translate into a reduced schedule of maintenance in the parks <br />and reductions in the community education program could see reductions in the youth <br />program or summer program. Staff will focus on the items listed in bold print because <br />they have the greatest impact on delivery ofpublic services. <br /> <br />2004 Budget Reductions. Since the State Legislature is still weeks away from <br />development and adoption of a final budget package, it may not be appropriate to begin <br />making reductions for the 2004 budget. Staffbelieves that it is a safe assumption that the <br />State Legislature will eliminate the entire State Aid package of $764,986 in the 2004 <br />budget year. What is not known at this time is whether levy limits will be extended or be <br />removed or some type of reverse referendum for levy increases be added as a City <br />requirement for levy increases. Staff would encourage the City Council to begin an <br />aggressive approach to revenue generation, not only to address the 2003 aid reduction <br />matter, but to begin preparing for the proposed 2004 aid reductions. The largest revenue <br />generation identified by staff is the creation of a franchise fee. A franchise fee was <br />discussed in the previous section. The second revenue generating strategy is to increase <br />the Housing Redevelopment Authority (HRA) levy to the maximum amount allowed. <br />Council may recall that the Economic Development Authority, which currently has HRA <br />levy authority, chose not to levy the maximurn for the 2003 budget. Staff will <br />recommend the creation of an independent HRA as to fully utilize the HRA levy. <br /> <br />Action Statement: <br /> <br />Provide direction to staff to begin addressing the 2003 and 2004 State Aid Reduction. <br /> <br />CCWS: 4/29/03 <br /> <br />-12- <br /> <br /> <br />