Madison (WKOW) -- from City of Madison Mayor's Office: In response to the continuing market downturn and uncertain financial outlook for the future, Mayor Dave Cieslewicz Tuesday said he will reduce projections for investment income for the 2009 budget by another $500,000.
"With the continuing volatility on Wall Street and uncertainty as we look to the future, we need to be fiscally prudent," Mayor Cieslewicz said. "As I make final decisions on my 2009 budget, I want to make sure we have realistic projections for the income the City will receive from our investments in the current market. Unfortunately, that means accounting for what will likely be lower yields on our investments."
In initial budget projections made when he started work on his 2009 budget in July, Cieslewicz had used an investment income amount of $5,250,000 or $750,000 less than what had been budgeted for 2008.
The new projection reduces that number still further to $4,750,000.
"Unfortunately, the downturn in the financial markets is poorly timed as far as the city's budget is concerned. There is no way we can tell today what the investment environment will be like in three or four months. It's only prudent to ratchet down expectations," City Treasurer Dave Gawenda said.
"We'll continue to work closely with the City Treasurer to make responsible projections that reflect the reality of the market and our budgeting situation," Mayor Cieslewicz said. "In the meantime, the news only underscores our need for fiscal restraint in the 2009 budget."