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6.2. SR 12-03-2001HEMORANDUM Item 6.2. TO: FROtfl: DATE: SUBJECT: Mayor and City Council Pat Klaers, City Administa~~ November 26, 2001 ,~ Consider Funding Source for 2001 Small Theater Payment In September, the City Council committed to pay the school district $112,600 per year for five years in order to retain the small theater in the senior high. At that time it was suggested that the city use excess revenues from the 2001 operating budget for the first payment. After evaluating the status of the budget, it appears that revenues will substantially exceed expenditures due mainly to the high level of growth related revenues that have been received. Now that we are closer to the end of the calendar year and more confident that revenues will exceed expenditures, it is appropriate for the Council to formally authorize this payment to the school district. Recommendation It is recommended that the city make its 2001 payment to the school district in the amount of $112,600 from the operating budget based on revenues exceeding projections.