(8) Fund Deficits

The general fund currently has a deficit unreserved and undesignated fund balance of $2,955,290. This deficit has been created over several years by revenue shortfalls, and overexpenditure in amounts appropriated. A significant portion of this deficit is the result of the City adopting legislation which allowed the City to under budget $919,136 in certain salaries related to teachers' pay in fiscal 1992. The law requires that these costs be raised over a maximum of 15 years beginning in 1997.

The following capital project funds had deficit unreserved and undesignated fund balances at June 30, 1994:

These deficits will be financed through future bond issues.