The BEDC board, which convened a special meeting Sept. 15 during the council workshop, agreed to target an additional $200,000 to city coffers during the fiscal year which begins Oct. 1. BEDC is already slated to support some parks operations and part of the city’s Main Street Program.

The new BEDC cash infusion will allow the city to divert other funds to boost different operations, including street maintenance, said Bastrop City Manager Mike Talbot. The same move will allow the city to cut its cash subsidy from Bastrop Power & Light to $675,000 in the year ahead, down from $900,000 in FY 2009. Previous budget drafts from Talbot had already trimmed the BP&L transfer to $750,000. Tuesday’s action allows that figure to fall to $675,000 in FY 2010, said Talbot.

The city manager said the new approach will also allow the city to target $100,000 for street maintenance in the new budget year. A previous spending plan capped street expenses at $30,000 for the year.

The remainder of the $200,000 expected from BEDC will be held in a contingency fund which the council can allocate later in the fiscal year, said Talbot.

BEDC board president Gary Guiterrez said the economic development arm of the city can easily afford to boost support of city functions, in part because planned improvements on Chestnut Street, beginning later this year, will cost far less than planned a year ago.

Council members said they don’t want to make a yearly habit of dipping so deeply into BEDC funds to make ends meet.

Talbot said the changes adopted this week don’t change many key features of the city’s spending plans for the upcoming year–no staff additions, despite rising service demands, almost no new capital equipment ( two new police cars), and pay plan adjustments of only 1 percent plus additional longevity pay. He also called for a thorough review of the new year’s budget performance in March, half way through the fiscal year, because expected income and spending needs remain “very tight,” with little leeway for unanticipated changes or developments.

The council is slated for a final budget vote on Sept. 22. The BEDC board will meet Sept. 21 for a final review of its new budget proposal for the coming year.