The Council's Budget Stability Policy dictates a procedure for budgeting revenues to ensure a consistent provision of an affordable level of services. The policy requires that core general fund program expenditures be restricted to the lower revenues by line item of the last two completed fiscal years. When additional funds are available, the second level of funding is for operating capital--primarily street maintenance, equipment replacement and information technology replacement funds. These items normally require about $2 million per year for full funding. Any additional funds above this, Tier 3 funding, would then be allocated toward increasing fund balance, paying down debt and funding capital projects per Council direction.
At the time this agenda item was prepared, the best estimate is that between $150,000 and $450,000 from the 2012 budget may be available for Tier 2 funding.