Workshop Item: Joe Huss, Finance Director
Title
2018 GENERAL FUND BUDGET DEVELOPMENT WORKSHOP
Background
The 2018 Budget preparation process began with a discussion at the May 4, 2017 Workshop that focused on establishing the 2018 levy. At that workshop, Council reviewed Blaine’s tax base growth and potential 2018 tax levies. Council direction was to begin budget development under the assumption that the total of all city and EDA levies would be set at an amount such that the combined tax rate for all city and EDA levies would not exceed the overall combined tax rate of 35.901%. Current estimates, as discussed on May 5, indicate the capacity to increase overall levies by $1.8 million and still maintain the targeted tax rate.
Staff is preparing 2018 payroll projections for Council to review. With all labor agreements settled for 2018, salary and wage projections for 2018 are fairly easy to project at this point. Based on this, the conversation at this Workshop will focus on a review of current funding of status quo and establishing priorities for any new programs Council would like to consider.
The work-plan for developing the 2018 budget remains unchanged from that presented to Council in on the previous meeting, and is summarized as follows:
• May - Establish initial budget direction, expectations, and broad assumptions.
• June - Review levy scenarios; Council to provide further direction on the preliminary 2018 tax levy and service assumptions.
• July - Review draft budget; further refine assumptions; and begin prioritizing services
• August - Develop Preliminary Tax Levy and Budget
• September - Adopt Preliminary Tax Levy and Budget. Council establishes target levy and service levels.
• October-November - Prioritize and reprioritize based on ability to fund.
• December - Complete prioritization process, and adopt 2018 tax levy and budget.
Recommendation
Staff is seeking Council direction on the following:
• 2018 property tax levy
• Non-levy revenue assumptions
• Establishing 2018 operating/service levels