Long budget talks are expected for the City Council today as officials attempt to make sense of upcoming budget issues.

Council members are scheduled to meet for Community Investment Program and other budget discussions this morning in City Council chambers in the police facility. The proposed 10-year CIP plan budget currently stands at about $118 million for the 2010-11 fiscal year. Staff has prioritized existing projects to match available dollars, City Finance Director Gayle Whittle said, but there is a growing issue that must be addressed during the meeting.

“We have no money,” she said. “There are no funds for the CIP in our general budget in the immediate future. There is for future projects years down the road. (Staff is) presenting what we think we can realistically afford.”

In a memorandum to the City Council, Whittle described the primary issue this way:

“Prospects for future general fund revenue for capital projects are limited to the 2 percent of the general fund revenues as outlined in the Fiscal Sustainability Policy, which is about $1 million per year. Due to the current economic situation, the 2 percent of revenues is not available for CIP projects for the coming year.”

Whittle said the next move depends on the City Council and what possible direction council members indicate for future projects.

“We just can’t do everything,” she said. “Everything we have presented here are things we can afford to do and need to do. There is nothing that says, ‘We need to do this but we have no money.’”

Whittle said there are alternatives and other options for many of the projects but added that council must be presented with the issues first. Staff is working on “several strategic planning projects to address facilities and technology needs in the future,” Whittle said in the memo and continued that future stimulus funding might be another option.

“This depends on the federal government and if they pass another round of stimulus dollars,” she said. “In terms of the likelihood of that, I couldn’t say. If it does happen, Lake Havasu City would be able to be a recipient of some of those funds.”

Interim City Manager Charlie Cassens said even if some projects are pushed out because of budget woes, the CIP is still important to the city.

“There isn’t much money in our budget to do the things we’d otherwise want to do,” Cassens said. “It’s still important to discuss this and have a CIP because rating agencies look at how the community proposes to progress and it’s important we try to do what has been proposed to us.”

The City Council is also expected to discuss alternatives and possibly provide some direction on alternative budget options discussed during two department-head meetings last week. Officials expect an estimated $3.8 million budget deficit this year and in response had meetings to discuss possible areas to trim the budget by May.

“We hope to get some guidance on those alternative ideas we’re looking at getting us through the next fiscal year,” Cassens said. “The meeting (today) should be very educational for all of us. I’m looking forward to hear where the council thinks we should go.”

You can contact the reporter at nbruttell@havasunews.com